Multi-year car insurance policy refers to the point where instead of providing a car insurance policy with a one-year tenure, the insurer provides coverage for a tenure up to 3 years. With a multi-year car insurance policy, the insured does not have to renew the car insurance plan every year.
However, this multi-year policy is applied to the vehicles that are purchased after 1st September 2018. Moreover, it is applied on purchasing third-party vehicle insurance only, and for a comprehensive plan, owners can still purchase the policy for one year.
The common benefits that you get with multi-year third-party vehicle insurance are:
Further, as per the order of the Supreme Court, you will be given the below mentioned three options for your vehicle insurance when you are purchasing a brand new vehicle:
Since the law has mandated third-party insurance cover for giving you financial protection against any accidental expenses that occurred to third-party, thus for covering your own vehicle against any loss or damage you must take a comprehensive insurance plan. For this, you can opt for any of the above-mentioned options.
The premiums of the comprehensive plans depend on various factors such as the make and model of your car, safety devices installed in your vehicle, the purpose of your car/ bike, and the area where you are staying.
Learn about the insurance premium that a policyholder has to pay for a multi-year car insurance policy as per the engine capacity of the car is listed in the table below
For Cars:
The capacity of the Engine |
Multi-Year (Three Years) Third-Party Premium (Rs.) |
Less than 1000 CC |
5,286 |
Greater than 1000 CC but Less than 1500 CC |
9,534 |
Greater than 1500 CC |
24,305 |
Learn about the difference between one-year and multi-year car insurance policies in the table below:
Parameters |
Single Year |
Multi-Year |
Law |
Mandatory multi-year third-party for new cars |
Mandatory for every car |
Renewal |
Once in 3 years |
Every Year |
Premium |
Lesser premium due to one-time payment for 3 years |
Higher as compared to multi-years |
It must be clearer to you that a third-party insurance cover does not offer any protection to your own vehicle and for the same you have to buy a comprehensive insurance plan.
Ans: Yes, as per the Supreme Court’s order, it is now mandatory for people with a recently bought car to purchase a multi-year third-party car insurance policy.
Ans: If you purchase a third-party multi-year car insurance policy then you don’t have to go through the hassle of renewing it every year and you will have to pay a lesser premium amount as compared to what you would have to pay every year in a single year car insurance policy.
Ans: As per the Supreme court, people purchasing a new car after September 2018 must purchase a third-party car insurance policy with a validity of three years whereas they can still choose to purchase comprehensive car insurance with one-year validity.
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*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
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