Updated on 10-04-2025
If you plan to buy a new car, you might be wondering about the insurance options available for your vehicle. As per the Supreme Court order, all new cars sold after September 1st, 2018, must have at least a 3-year third-party insurance policy. That means you must pay the premium three years in advance and get coverage for any liability arising from third-party damages or injuries. But what about the protection of your own car? Is a third-party insurance policy enough to cover the risks and expenses involved in owning and driving a car? The answer, in short, is NO. You need a comprehensive car insurance policy that covers both third-party liability and your car's own damage (OD).
However, a comprehensive long-term car insurance policy is not mandatory, unlike a third-party car insurance policy. You can purchase it for one year or more. In this blog, we will explore the features, benefits, and process of buying long-term comprehensive car insurance for 3 years.
What is a Long-Term Comprehensive Car Insurance Plan For 3 Years?
A 3-year, long-term comprehensive car insurance policy provides coverage for your vehicle for a continuous three years. Unlike traditional four-wheeler insurance policies requiring annual renewal, this plan ensures that your car remains insured without needing yearly paperwork. It encompasses third-party liability coverage and own damage protection, offering holistic financial security against various risks.
Features Of A 3-Year Car Insurance Plan
A 3-year car insurance policy comes with the following features:
- Longer Validity:It ensures long-term protection without requiring yearly renewals. With a 3-year insurance for a new car, you can enjoy the peace of mind and convenience of having a single policy for three years.
- Economical Option: Purchasing a 3-year comprehensive car insurance policy is typically much more feasible and cheaper than renewing the same yearly plan.
- Portability:Even after buying a 3-year comprehensive car insurance policy, you are still provided the option to change your insurance provider during this tenure. You have the option to port your policy to another insurer if you are not satisfied with the service or coverage of your current insurer.
- NCB Transfer:During the policy term, if you decide to sell your car or buy a new one, you are free to transfer your accumulated NCB to the new car or owner. This way, you can enjoy the benefits of discounted future premiums or get a better price for your old car.
Car Insurance for Three Years - What is Included and What is Not
Given below is the list of inclusions and exclusions under a three-year car insurance policy-
Included:
- Third-Party Liability Coverage: Financial protection against legal liabilities arising from injuries or damages caused to third parties.
- Own Damage Cover: Compensation for damages to your vehicle due to accidents, theft, fire, or natural disasters.
- Personal Accident Cover: Coverage for the owner-driver against accidental injuries or death.
Not Included:
- Depreciation: Unless a zero-depreciation add-on is opted for, standard policies do not cover the depreciation of vehicle parts.
- Mechanical or Electrical Breakdowns: Damages due to regular wear and tear or mechanical failures are typically excluded.
- Driving Under Influence: Any damages or liabilities incurred while driving under the influence of alcohol or drugs are not covered.
- Unauthorised Usage: Using the vehicle for purposes other than those stated in the policy (e.g., commercial use for a privately insured car) can lead to claim rejection.
Advantages of Choosing a Three-Year Insurance for Your Car
A 3-year comprehensive car insurance plan offers the following benefits:
- Loyalty Rewards:Who doesn’t like rewards? Some insurers offer loyalty rewards for long-term policyholders, such as discounts or additional coverage perks.
- Time-Saving:With a multi-year plan, you save time on annual policy shopping, allowing you to focus on other things that matter.
- Comprehensive Coverage:The policy provides coverage for both third-party liability and own damage to your car. This means that you can get compensation for any damage or loss caused by fire, theft, natural calamities, accidents, vandalism, etc. You can also opt for extra add-on covers, such as personal accident cover, roadside assistance, zero depreciation cover, etc., to enhance your protection.
How to Apply for a Three-Year Car Insurance Plan?
You can apply for a 3-year comprehensive car insurance plan online or offline in a few simple steps. Here are the steps to apply for a 3-year insurance plan online:
- Visit your insurer's website.
- Enter your car details, such as registration number, make, model, variant, etc., or select your car from the list of options.
- Choose the type of coverage you require, select the policy tenure as 3 years, and click on the 'Get Quotes' button. It should then show you the 3-year car insurance price.
- You can also customise your plan by adding or removing optional covers such as personal accident cover, roadside assistance, zero depreciation cover, etc.
- Fill in your details, such as name, address, contact number, and email ID, and pay online using a debit card, net banking, UPI, etc.
- Post payment, you will obtain a confirmation via email and SMS with your policy details and documents.
FAQs
1. Is a 3-year car insurance policy mandatory?
As per the Supreme Court directive effective from 2019, it is mandatory for new cars to have a third-party liability cover for three years. However, opting for a comprehensive 3-year policy is not compulsory but is recommended for enhanced protection.
2. Can I cancel my 3-year car insurance policy before its expiry?
Yes, you can cancel the policy before its term ends. However, the refund process and amount depend on the insurer's terms and the duration for which the policy was active.
3. What happens if I sell my car during the policy term?
If you sell your car, you can transfer the insurance policy to the new owner. Alternatively, you may be eligible for a refund of the premium for the remaining period, as per the insurer's guidelines.
4. How does the No Claim Bonus work in a 3-year policy?
In a 3-year policy, the NCB is accumulated over the policy term. If no claims are made during this period, you can avail of a significant discount on the premium during renewal.
5. Are add-on covers available with a 3-year car insurance policy?
Yes, insurers offer various add-on covers with long-term policies, such as zero-depreciation cover, engine protection, and roadside assistance, to enhance your coverage.
Conclusion
A 3-year long-term comprehensive car insurance policy offers numerous benefits, including convenience, cost savings, and enhanced protection. By opting for such a plan, car owners can ensure continuous coverage, avoid the hassle of annual renewals, and safeguard themselves against potential premium hikes. It's a prudent choice for those seeking peace of mind and financial security for their vehicles over an extended period.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.