Long-term four-wheeler insurance is designed to provide coverage against damage, theft, death, and coverage against third-party claims. To get the best benefits from the policy and avail of financial protection, buy add-ons along with your basic motor insurance policy.
Just imagine a situation. You are driving your car that is not covered by motor insurance. And all of sudden, the car runs over a stone, the steering turns and you meet an accident. You receive severe injury and the car is damaged. Who will bear the treatment costs if you are hospitalized? Who will pay the bill to the car mechanic who repairs your car? Who is responsible for driving an uninsured car? Who will be responsible for the challan issued by the traffic police?
Of course, you! Since you don’t have four-wheeler insurance against your car, you will have to bear all the expenses from your own pocket. That is where long-term four-wheeler insurance comes to play.
Long Term Four Wheeler Insurance in India
Driving a car without insurance is illegal in India, as per the Motor Vehicle Act of 1988. And many car owners can be seen renewing their motor insurance every year. Different types of four wheeler insurance are available in the country, such as:
- Third-party liability insurance
- Comprehensive car insurance
- Long -term four wheeler insurance policy
- Add-ons to additional coverage
Of all the above insurance policies, long-term four-wheeler insurance is the most advantageous. Coming with a validity of 3 years, this policy provides the best coverage to people who do want to renew their motor insurance policy every year and end up paying the service charges.
Find here why you should invest in long-term four-wheeler insurance.
Also known as a 3-year car insurance policy or multi-year automobile insurance, a long-term four-wheeler insurance policy lets you enjoy benefits from three years of cover without having to worry about claims or renewals.
The most critical part of any motor insurance is that if you do not renew the policy every year, you will end up enjoying its benefits and overall coverage of the policy. Any motor insurance company does not accept a claim of any expired policy. So, you must renew the policy. The insurer will not be responsible if you fail to renew.
But when it comes to long-term four-wheeler insurance, you escape from renewing the policy every year. This type of policy lets you get rid of the hassle involved in the renewal of a car policy annually. This is quite helpful for busy businessmen and other individuals who remain busy with their essential daily activities.
Many car insurance providers also want to check the vehicle before renewing the policy. Such annoyances are also reduced with long-term four year car insurance.
Prevent Premium Price Hike
Insurance premium rates increase every year. They become more expensive with the time. In general, the rate of third party insurance premiums is decided by IRDAI every year. However, if the IRDAI increases the premium rates, then it will not be applicable for your long term motor insurance for three years. This is because the date of your policy renewal will come after three years. During this tenure, your policy premium will remain unchanged. Thus, by choosing 3-year-long motor insurance, you will avoid price hikes and save up to 35%-40% on yearly renewals.
Insurance companies offer premium discounts if long-term four wheeler insurance is purchased. Discounts are available because these motor insurance plans allow insurance companies to reduce their managerial costs and policy issuing costs. In addition, if your vehicle is equipped with an anti-theft device, you will be eligible for additional discounts.
No Risk of Non-Renewal
If you fail to renew your policy on time and you need to replace any parts of your car, you’ll have to bear the expenses. Not only this, failure to policy renewal may lead to other dangers, such as claim denial, having to pay from your pocket for any damage due to an accident, and so on. With a long-term four wheeler insurance policy, you can eliminate such risks if you forget to renew the policy every year as the policy will be due after 3 years.
Time and Energy Saving
In case of a standard insurance plan, the insurer will want you to submit an examined review of your vehicle’s condition during its annual review. In contrast, there is no such terminology when it comes to a long-term four-wheeler insurance policy, you don’t need to go through this process every year.
No-Claim Bonus Transfer
Every insurance provider offers no claim bonus (NCB) to the policyholder on the car insurance premium for not filing any claim during the previous policy tenure. The NCB with a long-term insurance plan may be higher than standard insurance policies, according to some insurers.
Many motor insurance policies are available to choose from for your vehicle. You need to consider several factors in order to choose the right one. These factors are coverage options, policy tenure, premium costs, claim benefits, number of garages, and so on. A long-term four wheeler insurance is worthy of every amount spent on it. The best part is you cannot skip buying it for your new car. In a nutshell, long-term insurance for your four-wheeler is beneficial in all aspects. It is ideal, especially for those who forget to renew their policy annually.