A long term third party car insurance plan can prove to be very beneficial for you. However, before you get such a cover, do remember to do adequate research as some of the features of this cover are quite different from the features of a regular third-party plan. Listed below are three of the most crucial long term third party insurance facts that you must know when you opt for such a plan. Take a look.
3 important rules of 3-year policy car insurance
Here are the top three laws:
#1 Long-term insurance is compulsory for new vehicles
If you have bought your vehicle after September 1, 2018, you have to get a long-term third party cover. This is now a compulsory thing to do. Even if you buy a shorter comprehensive cover, the third party component of the premium needs to be paid upfront for the next three years. You will, therefore, find your car insurance premium to be higher in the first year, but it will get more economical in the next two years. This rule only holds true for newer cars. For older cars, the shorter policies are still available. Even if you wish to renew your car insurance policy, you need not to get a three-year third party insurance cover.
#2 The policy cannot be cancelled
Once you pay your premium and get the three-year third party cover, the insurance provider cannot cancel your coverage. You will have a valid third party car insurance cover for the next three years for sure. The IDV of the vehicle will, therefore, be taken in the first year’s value and the coverage will continue for the next few years.
#3 You have to pay only the third party premium
When buying the policy, you can choose between the types of insurance covers. So you can either choose a third party plan or a comprehensive plan. If you choose a comprehensive plan, you have to only pay the third party premium for three years. The comprehensive premium can be paid yearly. This is an important point to remember while looking at and choosing the right types of insurance covers for your vehicle.
Keep these important rules in mind before you look for your ideal car insurance cover online.
Advantages of long term covers
Here are some advantages that you get when you opt for three years of third-party insurance plan:
Don’t bother about renewals
You don’t have to bother about renewing your plan every year. You can get the long term cover and renew only once every three years.
It is cheaper
Insurance providers usually offer about a 25% discount on the car insurance premium when you opt for a long term plan. This helps you save money quite significantly.
Better NCB deals
In a regular policy, you get only 35% NCB at the end of a three year period. however, in the long term types of insurance plans, you get 40% NCB after you complete three claim free years. You also get stronger riders that protect your NCB if only one claim is made in three years.
These are some very logical benefits of getting a long term car insurance cover. Do keep them in mind when you go shopping for your new plan.
The Bottom Line
It is very important for you to understand how car insurance works. The rules keep changing from time to time and you must stay updated with them. The recent ruling regarding the compulsion of long term policy coverage is something you have to be aware of. So do some research, understand the covers and then proceed to buy the plan. Also, run a comparison to see which plan is available at what rate. that will help you find the best possible car insurance policy at the most affordable rates for sure.