A new car is undoubtedly a prized possession and one would want to keep it safe and secure no matter what. An effective car insurance policy helps you achieve this goal and it is imperative to get one soon as you buy an automobile. In India, having third-party car insurance is mandatory as per the Motor Vehicles Act of 1988.

The Insurance Regulatory Development Authority (IRDA) is India’s insurance regulator and, among other things, sets the premium rates for third-party liability. With effect from (w.e.f) June 16, 2019, it has revised the price of third-party liability premium for some cars and motorbikes.

Let us take a closer look at this revision in the table below:

Vehicle Description Earlier premium Premium w.e.f
June 16, ’19
% increase
Pvt cars with engine capacity
≤1000cc* Rs 1,850 Rs 2,072 12%
>1000cc – ≤1500cc Rs 2,863 Rs 3,221 12.5%
>1500cc Rs 7,890 Rs 7,890 No change
2Ws with engine capacity
≤75cc Rs 427 Rs 482 12.9%
>75cc – ≤150cc Rs 720 Rs 752 4.4%
>150cc – ≤350cc Rs 985 Rs 1,193 21.1%
>350cc Rs 2,323 Rs 2,323 No change

(Source: IRDAI)

Let us now look into the benefits of having a long-term motor insurance policy:

For people who do not wish to be bothered with renewing their subscriptions periodically, one could opt for a long-term car insurance plan for their new automobile. Moreover, your temporary policy can just as easily be upgraded to a long-term one. To buy a long-term insurance comprehensive plan, however, is not mandatory and is a matter of personal convenience as opposed to long term two wheeler insurance third party policy, which has been made compulsory for all new car owners.

Now, you would benefit from the following things over time while buying a third party policy:

  1. Convenience

Buying a long-term plan is convenient as it saves you from the hassles of period car insurance renewal and removes the fear of the policy lapsing if not renewed on time.

  1. No lapse, no worries

In the case of a policy lapse, a few insurance companies insist on inspecting the vehicle before determining the conditions of the renewed policy. Moreover, if you get into an accident during this period, you would not be eligible to place an insurance claim as your policy is lapsed. With a long-term car insurance policy, you would not have to worry about your policy lapsing and your vehicle would be always protected.

  1. Fixed premiums

The premium of a long term plan does not change over the duration of your policy tenure. Premium rates are fixed since the time you purchase your policy and not affected by any changes till your policy ends.

While these are the benefits that a long term third party policy provides, you also receive coverage for your own vehicle for a longer period along with the option of extending your inclusions with add-on covers if you opt for a long term comprehensive insurance plan for your car.

Car insurance can be purchased and renewed online. If you are a new car owner, you can make use of a car insurance premium calculator and find the plan that suits your needs best. An effective long-term insurance policy will be beneficial in shielding you from all issues that you might face on the road at any time in the future.