If you own a car in India, you have to insure it. It is mandatory to do so. While the law makes it compulsory to purchase a Third-party Liability policy, it is suggested to opt for a Comprehensive plan for extensive coverage. Both plans can be purchased for the long term. Read ahead to know more about buying and renewing long-term Comprehensive car insurance policy.
Long-term Comprehensive Car Insurance:
Long-term car insurance is better because it relieves you of the task of annual policy renewal. Also, you purchase the policy for three years at a price prevailing at that time. Thus, you are shielded from likely price hikes for the next two years.
Third-party Liability policy’s rates tend to increase on an annual basis. As a Comprehensive plan includes the basic Third-party Coverage, the prices of the Comprehensive plans are bound to increase. Besides, the insurance companies might also increase the premium for offering Own Damage cover and Add-ons on a yearly basis leading to an increase in the annual insurance premium. This will not affect a long-term policy.
You have to keep multiple things in mind before you purchase a long-term car insurance policy. Here’s a handy list of things to consider before purchasing it. You can go through the following points in detail to understand whether it makes sense for you to purchase a long-term car insurance policy.
You can purchase or renew a long-term Comprehensive car insurance policy for three years. But the question is, are you going to keep your car for that long? Consider this – your car is, say ten years old. You buy a long-term policy in the eleventh year. And for some reason, you sell it that year itself. This won’t be fruitful from an insurance perspective.
You will have to transfer the insurance policy in the name of the new owner. If you purchase a new car, you will have to insure that as well. Thus, selling a vehicle midway in your long-term car insurance policy’s coverage can be nonproductive.
But if you plan to own your car for a long time, then you must opt for a long-term policy. This is a hassle-free way of ensuring that you comply with the law and insure your car for a long period. Selecting a long-term policy while renewing your car insurance will also mean your car will stay insured for that long without the need to renew its policy yearly.
You have to consider whether the chosen Add-ons are going to serve you for the long term. For example, you might consider purchasing a Passenger Cover Add-on because you travel daily with your spouse to the office. However, this scenario can change if either of you undergoes a job change and you and your spouse no longer travel in the same direction. Then such a cover might not be useful in the long run.
If you plan to use the insured car for road trips in the future, then you should consider Roadside Assistance Add-on. Some of the popular Add-ons are Zero Depreciation, Engine Protection, Return to Invoice cover, and Accessories Cover. Going for these Add-ons will increase your insurance premium. Check whether you really need the Add-ons. Purchase only the suitable ones keeping in mind the long-term nature of the policy.
Also, read: Does Car Insurance Cover Windshield Damage?
The car insurance industry has become competitive due to the advent of digital insurance. Traditional insurance companies have adopted a digital way of life. Digital-first insurers have also come into the picture. Amidst this, existing and prospective policyholders are the ones who are getting benefitted thanks to better features.
Some insurers might provide free of cost pick-up and drop services (from accident spot/home to the garage and back to your residence). Insurers might also bundle select Add-ons in their Comprehensive plan. Keep an eye on these extra features while thinking about purchasing a long-term insurance policy.
Credibility of the Insurer:
The credibility of an insurer is of the utmost importance when it comes to purchasing a policy. You want your insurer to stand by you in tough times. Claim-related processes need to be stress-free. You do not want to get stuck with an unsuitable insurance company for a long period of time.
Yes, portability is an option but it does take an effort. It is better to conduct basic research regarding the credibility of an insurer before purchasing the policy. Speaking to friends and family, and checking online reviews is a good way to verify the credibility of an insurance company.
Car Insurance Comparison:
Do not skip car insurance comparison and jump straight to purchasing a policy. Car insurance comparison can help you to understand the cover, features, and the price charged. You can compare policies on aggregator websites as well as by browsing insurer’s websites individually. You can get insights after visiting the insurance company’s website as they offer cover-related information in detail.
While comparing, do not get blinded by the premium. Check whether you are getting enough and needed coverage at the offered price. Digital insurers are known to offer optimal coverage at a low premium.
Frequently Asked Questions:
You have the option of buying or renewing long-term car insurance online. Online car insurance renewal is simple. You can insure your car within minutes.
Make sure to read the policy document and clear your doubts by getting in touch with the insurer before buying or renewing a long-term car insurance policy online. You can contact your preferred online insurance company by calling their support team or by sending them an email.
The insurance premium for the basic Third-party coverage is not decided by car insurance companies. They have to follow the rates mentioned by the governing authority of insurance in India, which is the Insurance Regulatory and Development Authority of India (IRDAI). These rates may or may not change annually.
The premium for a Comprehensive car insurance policy can be determined by the insurance companies. Therefore, different insurance companies charge different insurance premium for their Comprehensive Plans.
Roadside Assistance is an Add-on cover. However, some insurers might offer it as a part of their Comprehensive plan. To understand it in detail, you will have to go through the inclusions of the policy you are about to purchase. If you feel you are unable to understand the inclusions, you can contact the insurance company via call or email and clarify your doubts.
Important details about the car insurance policy are usually mentioned on the web page from where you are about to buy or renew the plan. Sometimes, you might not get in-depth information over there. To know about the terms and conditions of your desired car insurance policy, you can look at its corresponding Policy Wordings. This document can be downloaded from your insurance company’s website. Usually, it is located under the website’s Downloads section.
Read informative Car Insurance Articles at Acko.
Read all our insurance & non insurance related articles here.