Home / General Insurance / Purchasing a New Vehicle? Gear up for Long-Term Insurance

Purchasing a New Vehicle? Gear up for Long-Term Insurance

Team AckoOct 31, 2022

The financial year has just ended. If you’ve had a good year, you must have high hopes as far as the annual appraisals are concerned. So if everything goes as per plan, is a swanky new car on your to-buy list? Or do you fancy a cruiser bike? If you are planning to purchase a new vehicle, gear up to buy a mandatory long-term insurance policy along with it.

Purchasing a New Vehicle? Gear up for Long-Term Insurance

Contents

icon

What’s a long-term insurance policy?

A policy which is issued for more than one year. Earlier on, you could insure your vehicle just for a year. But now, the rules have changed.

What’s the new rule?

The new rule states that every new vehicle needs to be insured with a long-term policy. This change has been made by Insurance Regulatory and Development Authority of India – IRDAI, which is the apex insurance body in the country.

If you purchase a car today, you will have, in one go, insure it for a period of three years. A bike, for five years straight. Note that this rule is applicable for the basic third-party liability policy.

What if I want to choose a comprehensive long-term policy?

You are free to purchase a comprehensive car insurance or two-wheeler insurance for long term as well. In fact, it will provide you with extensive insurance coverage and suitable add-ons. Yes, it will be costlier compared to a bare-minimum third-party liability policy, however, it offers own damage cover and includes the benefits of a third-party liability policy as well as a basic personal accident cover.

Also, read: Long Term Two Wheeler Insurance

Is this new rule a good thing?

From an administrative perspective, it is a good thing as new vehicles will be insured straight away for a long period of time. That means, no more remembering to renew policies, thus reducing financial losses arising due to vehicle-related unfortunate events. Note that your insurance policy will not cover losses faced when you were uninsured.

From a vehicle owner’s point of view, it is mandatory to insure your vehicle if you want to drive/ride on Indian roads. This insures that your policy stays active for a long period of time without annual renewal. Thus eliminating the tension of timely renewals.

By purchasing a long-term policy, you ensure that the policy stays active automatically for a longer period of time. Also, you stay immune to any annual price-rise regarding third-party insurance as you pay for long-term based on the price prevalent while purchasing the policy.

Also, read: New car insurance

Questions?

Get all your queries resolved by getting in touch with our support team, through email at [email protected] or by calling 1800 266 2256 (Toll-Free) or 1860 266 2256.

icon

Want to post any comments?

icon

Motor Insurance Made Easy

No more tedious paperwork! Insure your car and bike today.

car icon
Car
bike icon
Bike

Car number

or

car icon

Looking to insure your new car?

Save big with our zero commission insurance