Have you ever missed your insurance renewal date? We all have missed some or the other insurance renewal date. With work commitments and other responsibilities, it is often the case of missed payment dates. It not only leads to delayed renewals but also one loses out on the benefits accrued during the policy tenure. Some of them can be renewal benefits or even no claim bonus.
So why not switch to a multi-year car insurance policy? Buying a multi-year policy ensures convenience for the policyholder to skip the usual annual renewal cycle and renew after a predefined period. For car insurance, a multi-year policy is available for three years.
What is multi-year car insurance?
As the name suggests, a multi-year policy is that which spans over multiple years to offer coverage for your car. At the time of fresh purchase or car insurance renewal, you can decide between buying an annual policy or a multi-year policy.
What are the types of multi-year car insurance policies?
The apex court had issued an order stating the different policies that an insured can avail when buying comprehensive car insurance policies.
- Third Party Only Cover:
This type of insurance is mandatory and offers coverage for damages inflicted upon third party person, vehicle or property.
- Long-Term Comprehensive Cover:
A comprehensive cover offer a more well-rounded coverage including own damage and inclusions for natural disasters as well. It can be opted for a duration of three years.
- 1 Year Comprehensive Cover:
In case you’re hard on finances and cannot opt for comprehensive cover for all three years, buying a comprehensive cover for one year and third party cover for the same durationis an economical alternative.
Why should you buy a multi-year policy?
The facility to buy a long-term cover is available under comprehensive &third-partyinsurance plans. Albeit with higher premiums than annual insurance plans, multi-year policies are rewarding in terms of coverage for longer tenures, concessions in premiums and skipping the price hike.
What are the benefits of buying a multi-year policy?
Let us look at the benefits of a multi-year plan.
Skip your annual renewals
The primary concern that a multi-year policy addresses is missed renewal dates. You may notice that a multi-year policy gives you the freedom from remembering renewal dates while enjoying continued coverage for prolonged periods. The premiums for these multi-year policies are higher in comparison to single year plans.
No hike in premiums
Since the regulatory body re-evaluates the premiums for each financial year, comprehensive plans also witness a rise in the premium amount. Buying a multi-year policy ensures there is no rise in premium for the tenure of your policy. The premium paid at inception can be equally allocated for the duration of your policy.
Concession in premiums
Most insurers offer a substantial concession in premium amounts when you pay a lump sum premium for all three years together.
Lastly, remember to take advantage of comprehensive policies instead of opting for cheap car insurance solutions. These comprehensive plans offer a wide cover, ensuring you remain protected at all times extending such protection over one year.