Owning a personal vehicle is a major accomplishment in life. We all want to spend money on the car that best suits our demands and income, and over time, upgrade to newer models. However, buying four-wheeler insurance is something that many Indians are less concerned about. The statistics on insurance penetration in our nation speak volumes about the importance of raising public understanding of the many forms of insurance plans.
According to the 1938 Motor Vehicles Act, four wheeler insurance is required in India. In India, driving without a legal four-wheeler insurance policy can result in fines of up to 5000 rupees, up to three months in jail, or both in 2023.
In India, four-wheeler insurance pays for repairs for damage to the vehicle resulting from collisions, theft, fire, etc., as well as other causes of damage. There are many network garages, IDV (Insured Declared Value), riders or add-ons, third-party liabilities, no claim bonuses, etc. provided. So, let’s discuss the benefits of a four-wheeler insurance in brief below:
1. Good Ample Discounts
If a customer purchases long-term four-wheeler insurance, insurance firms will reduce the premium. Discounts are offered as a result of the fact that these vehicle insurance plans enable insurance companies to lower their administrative and policy-issuing expenses. Additionally, you will be qualified for additional reductions if your car has an anti-theft device.
2. Comfort
One of the important aspects of any automobile insurance is that you will lose access to the advantages and comprehensive coverage of the policy if you do not renew the policy each year. A claim for an expired policy is not accepted by any automobile insurance company. Thus, the policy needs to be renewed. If you don’t renew, the insurance won’t be liable.
However, if you have long-term four-wheeler insurance, you can skip renewing the contract each year. You may avoid the headache of having to renew your auto insurance every year with this kind of policy. Businessmen in a hurry and other people juggling everyday responsibilities will find this to be quite helpful.
3. Lack of a Non-Renewal Risk
You will be responsible for paying the costs if you don’t timely renew your coverage and you need to replace any components of your car. Other risks, such as claim denial, having to pay out of pocket for any damage caused by an accident, etc., may result from failure to renew your policy, in addition to the one mentioned above. Such hazards can be eliminated if you have long-term four-wheeler insurance coverage and remember to renew it each year.
4. Transfer of No-Claim Bonuses
Every insurance company gives policyholders a no-claims bonus (NCB) on their automobile insurance rate if they didn’t file any claims during the prior period of the policy. Some insurers claim that the NCB under a long-term insurance plan may be higher than the NCB under regular insurance policies.
5. Saving Time and Energy
In the event of a normal insurance plan, the insurer will request that you submit an examined review of the state of your car for its yearly inspection. Contrarily, when it comes to long-term four-wheeler insurance coverage, there is no such phrase, and you are not required to go through this process annually.
Conclusion:
You can select from a wide variety of motor insurance policies for your car. To make the best decision, you must weigh several things. Overall, having long-term insurance for your four-wheeler is advantageous. It is perfect, especially for people who neglect to annually renew their policy.
