Multi Year Car Insurance Policy | Finserv MARKETS

Multi-Year Car Insurance Policy

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What is a Multi-year Insurance Cover?

Traditionally, ever since the advent of motor insurance in India, the term of a car insurance plan is valid for up to a year from the date of purchase. This poses a number of problems: Firstly, it is an inconvenient process for individuals to have to continually renew their insurance every single year. Given that most individuals are going to use their car for at least two to three years, going through the renewal process three times per vehicle is undoubtedly tedious. This is where multi year car insurance comes in.

A multi year car insurance policy, as the name suggests, is an insurance policy for your vehicle that lasts beyond the duration of one year or more specifically, for three years. This multi year car insurance is the result of a Supreme Court order that, in 2018, mandated that all third party insurance that is offered by motor insurance aggregators has to be in the form of a multi year car insurance policy that lasts three years. In the case of two-wheelers, this duration is extended to five years. Therefore, if you purchase a third party car insurance plan, it will by default be a multi year car insurance policy. While this is applicable for third party insurance, comprehensive car insurance is still available only for annual plans.

Multi-year Insurance for Cars

As part of the Supreme Court order in 2018, third party car insurance policies have to be in the form of multi year car insurance. This ensures the owners of the vehicle are saved from the hassle of having to constantly renew their policy every year. However, the benefits of this exceed just convenience for the customers. The Supreme Court order is part of a move by the government in order to bring more vehicles under the insurance blanket. This helps ensure better record-keeping and registration. Additionally, this also increases the assistance you might require in the case of an accident.

Types of Multi-year Car insurance

As this article continues to highlight, the Supreme Court order mandates that third party car insurance must be in the form of multi year car insurance, though this rule does not apply to comprehensive car insurance policies. This however, does not mean that a comprehensive car insurance policy cannot be offered as a long term plan. It is simply not mandatory for companies to do so. Keeping this in mind, let’s take a look at the types of multi year car insurance.

  • Comprehensive Multi Year Car Insurance

comprehensive car insurance policy is the best coverage you can afford your vehicle, and this holds true for multi year car insurance as well. You receive coverage against most events, including natural disasters, medical coverage for you and your passengers in the event of an accident, as well as coverage against theft. Additionally, you could also purchase multi year own damage insurance for your car as well, to double up on your coverage.

  • Long Term Third-Party Coverage

As we know, third party car insurance targets the ‘price to performance’ segment. Meaning, while it aims to offer you the best value for money, it does come without some of the bells and whistles you would get in a comprehensive multi year car insurance policy. For instance, it is lacking coverage against own damage, and only insures medical costs of the driver in the event of an accident. This can be remedied to some extent through the purchase of own damage multi year car insurance.

Why Do You Need Multi-year Car Insurance?

Car insurance for any vehicle is mandatory according to the law. If you own a vehicle, it must be registered and insured. This will also ensure that you do not have to assume liability for any accidents etc that you did not cause and is thus in a lot of ways in the best of your interests. We cannot account for everything that will happen out there on the road, but we can prepare ourselves the best we can through a multi year car insurance policy.

Benefits of Multi-year Car Insurance

  • No More Yearly Renewals

As a customer, the biggest benefit of a multi year car insurance policy that you receive is the elimination of the need to have to renew your car insurance policy every year. Subsequently, this also avoids any fines or consequences you would face in case you do not make the renewal in time. While you still have to remember to renew at the end of the term, the duration is longer, allowing you more time to plan.

  • Price Hike Protection

Insurance prices change every year and are subject to inflation. Multi year car insurance protects you against this. If you purchase a multi year car insurance policy in year 1, you will pay the same premiums up until year 3. With a single year policy, your premiums will change every year and could increase.

  • Discounts

Since you are purchasing a car insurance policy for three years or more instead of one, you are likely to make a saving as you are making a longer commitment. Some estimates put this saving at up to 35% to 40%.


Car insurance is mandatory for every car owner. Having to renew your policy every year can be an inconvenient task. With multi year car insurance, this is no longer necessary. However, if you prefer getting a plan that is valid for a year, Finserv MARKETS has you covered. Visit the platform to insure your vehicle with a car insurance policy today!

FAQs on Multi-year Car Insurance

  • ✔️Can I get car insurance at a lower premium?

    One of the biggest benefits of multi year car insurance is that your overall premiums are likely to be lower than a single year car insurance policy.

  • ✔️Do I have to get car insurance?

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

  • ✔️Can I make a claim if my car is stolen?

    Yes. Depending on the type of insurance you have, you can claim your insurance if your car has been stolen.

  • ✔️Can I renew an already expired car insurance policy?

    Yes. Even if you have a car insurance policy that has already expired, you can still renew it and should do so as soon as possible. With multi year car insurance, it is less likely that you will miss a renewal.

  • ✔️What happens if I do not renew my policy?

    If you are caught operating a vehicle without the appropriate insurance, then you will be asked to pay a fine of Rs. 2000 and/or may also be sentenced to an imprisonment of 3 months.