Archive · 19 Jul 2026
Why long-term car insurance is beneficial
Buying car insurance for a longer time, like three years, instead of just one year can save you money and hassle.
When you buy a new car, you usually get a one-year own damage and three-year third-party insurance.
After the first year, you can switch to a multi-year own damage policy.
This helps you avoid yearly price increases and keeps your premium the same even if you make a claim.
It also lets you save money through a no-claim bonus if you don't make any claims.
Plus, it's easier because you don't have to renew your insurance every year.
Experts suggest adding extra protections like zero-depreciation and engine protection to make your insurance even better.
Multi-year car insurance policies eliminate the hassle of annual renewals and prevent accidental lapses during the vehicle’s highest-value years.
Long-term policies lock in premiums for up to three years, providing financial certainty amid rising repair costs and inflation.
Insurers offer significant upfront discounts on long-term own damage (OD) premiums, leading to substantial cost savings over time.
Multi-year policies protect against claim shocks by maintaining locked premiums, allowing no-claim bonuses to accumulate up to 50%.
Pairing long-term policies with add-ons like zero-depreciation, engine protection, and roadside assistance ensures comprehensive coverage.
- Who
- Car owners and insurance buyers
- What
- Benefits of long-term car insurance policies
- When
- During the initial policy period and subsequent renewals
- Where
- India
- Why
- To avoid annual premium hikes, ensure financial certainty, and accumulate no-claim bonuses
- Initial Policy Duration
- 1+3-year bundled plan (one year own damage plus three years third-party)
- Multi-Year Policy Advantage
- Locks in premium for up to three years
- Cost Savings Example
- Multi-year policy for Maruti Grand Vitara is more economical than single-year renewals
- No-Claim Bonus (NCB)
- Accumulates up to 50% with claim-free years in multi-year policies
- Recommended Add-Ons
- Zero-depreciation, engine protection, roadside assistance, battery protection for EVs/hybrids