As car insurance is mandatory for every car owner, it needs to be renewed annually. But we all find it daunting, don’t we? Some people avoid renewing their vehicle simply due to the lengthy process. Although, by ignoring our car insurance policies we are not only breaking the law but also putting ourselves under financial risks.
You are travelling to your office in your car and you accidentally run into another vehicle. As the accident was caused by you, it is you who becomes liable to pay for the damages caused to the third-party.
Now, if you have a car insurance policy, damages caused to the third-party will be borne by your insurer, but if you were driving without insurance coverage, you will be compelled to bear all third-party damages.
To avoid such instances, the Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for car owners to buy a multi-year car insurance policy.
Types of Plans Offered under Multi-Year Car Insurance
- Long-Term Third-Party Coverage
A third-party liability insurance policy covers damages incurred to the third-party due to an unforeseen event. Though this is the most feasible car insurance policy, you are liable to bear the damages caused to you and your vehicle.
- Long-Term Third-Party and Short-Term Own Damage Car Insurance
You can also choose an insurance policy where you buy a third-party car insurance policy for 3+ years and own damage policy for 1 year. In this case, the premium amount will be slightly higher and you will have to renew the own damage car insurance policy annually.
- Long-Term Comprehensive Car Insurance
Even though own damage car insurance is not mandatory, people opt for a comprehensive policy as it covers both, third-party damages and own damage. An extensive policy such as this is beneficial in the long run, especially because you are protected from the yearly hikes in the premium. However, you will have to pay a slightly higher premium as compared to the aforementioned car insurance policies.
Due to strict government rules and ignorance in people, insurance companies are trying to make the entire process quick and easy. Today, you can buy car insurance online and avoid the tedious process that requires you to contact the agent, visit the branch office of your insurer, compare different quotes, etc.
At Chola MS, we offer a wide range of options for you to choose from. You can visit our website and request a car insurance quote, or you can contact us at 1800-208-5544 and get in touch with our representative.