Multi-Year Car Insurance

As per the order of the Supreme Court, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated for all the general insurance providers of India to offer multi-year third-party insurance to the vehicles that are sold after September 1st of 2018.

Read more



Stay home & renew car insurance in 2 minutes

No documents required
Get Car Insurance starting at only
₹2072/year*
Processing
Other options
Get Car Insurance starting
@ only 2072/year*
  • Save up to 85%* Lowest Car Premiums

  • 20+ Insurers To Choose From

  • 51 Lakh+ vehicles insured

*TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

What Is Multi-Year Car Insurance?

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.

You might be interested in

Benefits of Multi-Year Third-Party Vehicle Insurance

The common benefits that you get with multi-year third-party vehicle insurance are:

  • No-Need to Rush for the Insurance Renewal Every Year: Even though you have to pay more premium but you are paying it collectively for three/five years. This means you do not have to pay the premium of your third-party insurance policy for three to five years depending on your vehicle. Since you have paid the premiums in advance, you need not worry about renewing the insurance policy every year. All you have to do is to pay the premium once and get the freedom from the renewal of your policy for three to five years as per your vehicle.
  • You Can Easily Port Your Insurance Provider: Taking an insurance plan for three or five years does not mean that you have lost all the hopes to change your insurance provider for this tenure. This rule or plan gives you full flexibility for porting your insurance provider to get better coverage and the best deals like the deals offered on National Insurance Car renewals.
  • Beat the Price Hike on Third-Party Insurance:The Indian government increases the rates of third-party insurance in every financial year. However, as you have paid the premiums for your insurance policy in advance, you will not have to worry about it. You do not have to pay extra money for this hike.
  • Lesser Uninsured Cars/ Two-Wheelers on Indian Roads: The number of uninsured vehicles on the roads of India will for sure decrease. This is because most people forget to renew their insurance policy on time.

Types Of Multi-Year Car Insurance

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:

  • Option one: You can buy only a third-party liability insurance policy for three years.
  • Option two: You can purchase a comprehensive insurance plan for three years, which will be very expensive and not recommended.
  • Option three: You can purchase a comprehensive insurance policy for one year with three years of third-party liability insurance. This is one of the most recommended options.

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.

Insurance Premium As Per Engine Capacity

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

Difference Between One-Year & Multi-Year Car Insurance

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

Why Multi-Year Third-Party Insurance?

  • A third-party insurance policy for vehicles offers cover for damages and losses caused to the life or property of any third party because of the vehicle that you own. Therefore, it offers financial protection to you against the losses caused to a third party.
  • A multi-year insurance plan ensures you that you are protected for the long term without any complications.
  • It also provides you protection against legal liabilities incurring because of the death, injury, or damage caused to a third party.
  • A third-party insurance policy for multiple years is more affordable and cheaper than purchasing the same plan every year.

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.

FAQs

Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Tips to Reduce Your Tata AIG Car Insurance Premium

19 Jan 2022

Planning to buy a Tata AIG car insurance policy but worried about...
Read more
Popular Inclusions and Exclusions in a Motor Insurance Policy

19 Jan 2022

Apart from being a mandatory purchase, a motor insurance policy is...
Read more
8 Mistakes to Avoid While Buying a New India Assurance Car Insurance Policy

17 Jan 2022

When it comes to choosing four-wheeler insurance, we blindly trust...
Read more
Can I Have Two Car Insurance Policies from Two Different Companies?

14 Jan 2022

Car insurance is essential as it protects a car owner from...
Read more
Why Royal Sundaram Can Reject Your Car Insurance Claim?

11 Jan 2022

Royal Sundaram Car Insurance claim process is quite simple and...
Read more
Transferring Car Insurance from One Person to Another
In the current economic climate that encourages consumers to “reduce, reuse and recycle”, it is becoming...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Insurance offers much-needed financial protection in case of a crisis. When vehicle insurance is mandatory in India...
Read more
How to Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Car Depreciation Calculator In India
Car depreciation is the difference in the value of a car between the time you purchase and when you sell it. In...
Read more
Multiple Ways To Check Your Car Insurance Status Online
Keeping a check on your car insurance policy is as important as purchasing a comprehensive insurance policy for...
Read more