If you own a car and wish to drive it, you know that you need car insurance. This is especially true for third-party insurance that covers legal and financial liabilities in the case of an accident. In addition to the legal aspect of things, car insurance has a huge role in car ownership, covering policyholders against the financial risk that an accident can cause.
Four wheeler insurance has a fixed period of time that it is valid for. What exactly this time period can classify your policy into a regular policy or a long-term policy. A one-year policy is the standard validity of a policy and a 3-year policy is referred to as a long-term policy. Either way, after the validity period of the policy is over, you have to go through renewal to continue using your coverage. Since the idea behind buying long term insurance is to not go through renewals each year, many people simply think that it’s better to just buy a new policy after their existing one expires. However, not renewing your policy not only puts you on the wrong side of the law, but also keeps you from a whole host of benefits. These benefits include:
Avoiding legal problems
As simply as it can be explained, driving without insurance will lead to consequences. These consequences include a major penalty. Moreover, in extreme cases, you could also end up having to serve time in prison. If you are ever pulled by a traffic police officer, one of the first things that they will ask you is for your insurance documents. If you fail to produce these documents, you will have to pay a fine at the very least.
Moreover, things become even harder if you have a bad driving record. Instances like going down the wrong path, breaking a traffic signal, etc. will be considered as bad driving. In such a situation, your legal troubles can grow tenfold. Renewing your long-term car insurance policy on time eliminates the possibility of this happening. With digitisation in the nation, you can even complete car insurance renewal online.
Eliminates the financial risk of accidents
In recent years, a committee of the Supreme Court reported that almost 66% of cars driving on Indian roads were not under the coverage of an insurance policy. This is not only unfortunate but also dangerous. Indian roads are often witnessing rash driving and little to no practice of traffic rules. There is often somebody breaking a traffic light or going above the speed limit. Such instances often lead to accidents that can cause physical harm and damage to the vehicles involved. Sometimes even a driver following all the traffic rules and safety guidelines will also end up in an accident due to some other driver’s fault. Either way, the financial burden of getting in an accident is too much to bear out of pocket.
Renewing your long-term policy ensures that you do not need to worry about finances in an already stressful situation. You can simply contact your insurance provider and give them all the information required to cover liabilities and repairs. * Standard T&C Apply
Thus, long term plans help avoid the hassle of yearly renewals and are convenient for many. Before you finalise on one policy, make sure to compare different plans and get a policy after using a car insurance calculator. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.