Long term Comprehensive Policy | Finserv MARKETS

Long term Comprehensive Policy

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What is a Long Term Comprehensive Policy?

Previously, on purchasing a comprehensive policy as insurance for your car, or even a third party insurance policy for your car or two-wheeler, your policy was valid for the year. This means that every year, you were required to renew this insurance policy. This immediately poses a number of problems and inconveniences for individuals. For starters, the biggest problem here was that with such quick renewal frequency, people tend to forget that they have to renew their policy, and end up with traffic violations etc. Additionally, driving without a comprehensive policy can be bad for individuals, as they have no financial cover in the event of an accident; and given that we can never control the outcome of what happens on the road, it is better to be safe than sorry. This is where the long term comprehensive policy comes into play.

 

As the same suggests, a long term comprehensive policy is the same as a comprehensive policy, with the additional benefit of it not being limited to one year, meaning you no longer have to renew every year. With the option to purchase the policy for more than one year you can purchase a comprehensive long term care policy for your car that lasts the duration that you plan on holding onto your vehicle for. Another benefit here is that since you are buying a single policy, the premiums you pay remain constant as they were in year 1. If you had to renew yearly, it is likely that you would have to pay high premiums, or at least varying premiums each time you renewed the policy.

Long Term Comprehensive Policy for Cars

A long term comprehensive policy for your car is the best coverage you could afford for it. Unlike third-party insurance, which targets the value for money segment, offering a more affordable price without some features, you could for the alternative, the comprehensive policy meaning that will get all the coverage, though it might be more expensive when compared to third party insurance.

As part of the comprehensive long term care policy for your vehicle, you get a number of benefits. The noteworthy one here is the personal accident cover, which has been increased from Rs. 3 Lakhs to Rs. 15 Lakhs. Let's take a look at some of the others.

You receive the following benefits:

  1. Coverage against damage caused due to natural disasters such as a cyclone, flood or earthquake.

  2. Cover for damage caused due to theft.

  3. Cover for damage caused due to vandalism.

  4. Cover for damage caused to a third party vehicle or property. This means that if you are responsible for damage caused to another vehicle or person during an accident, your insurance provider will be able to cover these fees.

There are also a number of benefits you receive from a long term comprehensive policy. For starters, you avoid hefty fines that you would have to pay if you were caught driving without valid car insurance. Additionally, you can opt for a number of add ons to improve your insurance experience and coverage as well. With a number of add-ons such as an ROI clause, zero depreciation cover and no-claim bonus protection, you can save yourself a number of expenses in the future.

Long Term Comprehensive Policy for Two-wheelers

For the most part, the coverage of a comprehensive long term care policy for a two-wheeler is similar to that of a four-wheeler. Meaning, you still receive all the benefits of having a long term comprehensive policy, you receive, for the most part, coverage against all the events that a comprehensive policy for cars would offer, and you needn’t renew it yearly either. There are, however, some things that you should keep in mind and some differentiating factors. For instance, the long term comprehensive policy coverage for a two-wheeler is capped at Rs. 7.5 Lakhs.

Regardless of this, the benefits remain the same. With reduced stress, a zero depreciation cover and even for the loss or theft of your key, ensuring your two-wheeler with a comprehensive long term care policy is just as important for your two-wheeler as it is for your car.

Things to consider before buying Long Term Comprehensive Policy

  • The time of purchase:

If you have a car that is 7 years old, and you don’t think you are going to drive it much longer, you might not want to get a 3-year policy.

  • The duration of ownership:

If you are purchasing a new vehicle, and wish to keep it for at least 5 years, then your long term comprehensive policy should last 5 years. If you plan on upgrading in two, however, your policy should reflect this decision as well.

  • Add Ons:

Each one of us has a different scenario in which we use our vehicles. Before you buy, ensure you have chosen all the add ons you may require, and have ensured you don’t have any unnecessary ones.

Summing it Up

A comprehensive long term care policy offers you a slew of benefits, the biggest of which is not having to renew every year. Given that you are likely to own a vehicle for a minimum of 2-4 years, a long term comprehensive policy might be your best option. The Finserv MARKETS website has a number of offerings helping you pick the comprehensive policy that suits you.

FAQs on Long Term Comprehensive Policy

  • ✔️What if my policy has expired?

    You can still renew your policy even after it has expired, and it is recommended that you do so.

  • ✔️How long can my policy be?

    According to the new guidelines, the policy can be 3 years for cars, and 5 for two wheelers.

  • ✔️What if I don't renew my policy?

    Not having valid insurance is grounds for suspension of your licence and your registration.

  • ✔️Do I have to get car insurance?

    Yes. It is by law, mandatory to insure your vehicle.

  • ✔️Can I get lower premiums?

    With a long term comprehensive policy, you are likely to have lower premiums than if you were to take a new comprehensive policy every year.