Car insurance is an essential purchase for anyone who owns or drives a car, so it pays to keep informed of the best options when it comes to coverage. One of the most popular and advantageous options that many people are exploring nowadays is long-term car insurance.
Multi-year four-wheeler insurance offers an excellent way for drivers to ensure they always have the coverage they need. In this article, we’ll break down the advantages, coverage, and eligibility requirements for multi-year and long-term car insurance.
What Is Multi-Year & Long-Term Car Insurance?
Multi-year car insurance is a type of car insurance. It is quite similar to comprehensive car insurance when it comes to the overall benefit. The major difference between the two is in the length of the coverage period. A standard car insurance policy has a term of one year. Long term car insurance can generally be anywhere from two to five years of coverage. For example, you would essentially be buying car insurance
for 3 years at once.
The obvious question that many have with this concept is regarding premium payments. More precisely, how much premium would you have to pay and when? Usually, you would have to pay a larger amount as premium for long-term car insurance. However, you would receive a larger tenure of coverage. Additionally, the amount you would pay for multi-year car insurance would be lesser than the total money you collectively spend on renewing your policy every year.
Advantages of Multi-Year Car Insurance
There are a number of major advantages to opting for long-term car insurance.
1. Cost saving
Long-term car insurance policies often come with discounts, ensuring that you are getting the best deal on your policy and ultimately saving you money in the long run.
Multi-year car insurance eliminates the need to remember to renew the policy each year, giving you the convenience of being covered for the entire duration of the policy.
3. Peace of mind
Having car insurance for 3 years or longer gives you greater assurance that you are protected no matter what happens to you or your car.
Some multi-year policies offer the option of customizing the coverage to suit your needs. This gives you the added flexibility to ensure your policy is tailored to your specific requirements.
Coverage for Multi-Year & Long-Term Car Insurance
· Accident Coverage
Repairs or replacements required due to an accident, as well as liability coverage for property damage or bodily injuries.
· Theft Coverage
Reimbursement or coverage for cars or parts stolen from your car.
· Natural Disaster
Repairs or replacements for any damage to your car caused by an act of nature, such as flooding, hail, earthquakes, or vandalism.
· Medical Expenses
Coverage for any medical expenses resulting from an accident, regardless of fault.
· Legal Expenses
Coverage for court costs and legal fees resulting from an accident.
Add-ons for Multi-year car insurance
Most multi-year car insurance policies allow drivers to add on additional coverage as needed. These can include coverage to cover incidents such as:
· Roadside assistance
This covers costs associated with towing, flat tire changes, jump starting a dead battery, and fuel delivery if needed.
· Consumables coverage
Many policies include coverage for personal items stored in the car that are damaged or lost due to an incident such as a theft or an accident.
Finally, most multi-year car insurance policies offer discounts for adding additional coverage such as anti-theft or collision protection. This can help to reduce the overall cost of the policy. Additionally, some policies may include discounts for bundling multiple policies with the same company.
Eligibility Requirements for Multi-Year & Long-Term Car Insurance
In order to be eligible for multi-year car insurance in India, drivers must meet the following criteria:
- Drivers must be at least 21 years of age and should have a valid drivers licence.
- The car must have valid registration and an appropriate third-party cover.
- Drivers must also have proof of a valid motor insurance policy.
- The car needs to meet minimum safety standards.
- The car must pass an inspection or ‘Pollution Under Control’ (PUC) test every year.
Long-term car insurance is an excellent option for drivers who want to ensure that they have the coverage they need at an affordable price. The advantages of such policies, including convenience, cost savings, and peace of mind, make them a great choice. Additionally, the coverage is the same as that offered in a standard four-wheeler insurance policy, but with the option to add on additional coverage such as roadside assistance. However, there are eligibility requirements that must be met before taking out such a policy, including a minimum age and good driving record.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.