How To Choose A Long-Term Car Insurance Policy?

How To Choose A Long-Term Car Insurance Policy?

Several general insurance companies have introduced long-term automobile insurance plans by the Supreme Court and Insurance Regulatory and Development Authority of India (Irdai) rulings. Three-year and five-year third-party liability coverage is now required for those who buy their cars or two-wheelers.

Regardless of the intermediary you select, make sure to compare prices online and upfront concessions before enrolling.

Available Long-Term Car Insurance Policies

Third-party liability insurance, own damage (OD) coverage and add-ons like engine protection and zero depreciation are all included in a comprehensive vehicle car insurance plan. The insurance regulator sets the prices for the third-party component.

Following the Irdai decision, general insurers could offer standalone third-party coverage, long-term motor insurance packages, and a combination of bundled long-term third-party cover (car insurance for 3 years and 5 years for two-wheelers) with a one-year own damage component.

On the other side, you will miss out on the yearly no-claim bonuses (NCB). The NCB on renewal for a yearly cover ranges from 20 to 50%. You won’t be qualified for NCB until the policy’s duration has passed. Insurance companies are currently providing upfront concessions on long-term OD premiums to make up for the loss.

Customers may receive long-term benefits from both NCBs.

Select The Ideal Combination     

It makes sense to choose a long-term comprehensive policy for two-wheelers because the renewal rates are pitiful and the danger of accidents is astronomically larger. To select the ideal combination, car owners may need to go further. A long-term package will now be less expensive overall, but you must be aware of the significant one-time expense since it will be in addition to the cost of your car purchase.

It is preferable to get a three-year long-term package policy. You are able to lock in the premium rates for a period of three years, and it will be free of charge for you from the hassle of yearly policy renewal. Initial indications suggest that third-party and own-damage car insurance that is combined for a year will become more popular.

Your ability to change insurers each year will be eliminated if you commit to a long-term own damage cover. If you’re a decently organised person, get a package that has a one-year own-damage component and long-term buy third-party car insurance online. Consider a long-term package policy if you are the kind who does not keep track of renewals or carefully evaluates premiums when purchasing a policy.

Given that long-term plans will be frequently supplied through dealers at the time of purchase, you need to ensure that you compare the possibilities on multiple portals. Some insurance companies might provide free extras like pick-up/drop-off and add-ons. You can check these benefits. Finally, consider its track record of customer service. Check for claims or any after-sales engagement in customer reviews on social media.

Standard T&C Apply

Visit the official website of IRDAI for further details.

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.

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