First and foremost, you can save a lot on premiums by opting for a 3-year insurance policy. In this policy, policyholders get the benefit of up to 10% discount on premiums.
Car Insurance: Not only the price of the car is increasing, the cost of car insurance premium is also increasing rapidly. If you are also troubled by the increasing premium of car insurance, then today we are telling you a great trick. By adopting this, you can reduce the cost of your car insurance.
Also, you can get rid of the hassle of renewing the insurance year after year. Now how will this happen? Let us tell you that many insurance companies are now providing cover for 3 years at once. With this, you can not only avail the benefit of insurance at a low cost but can also avail other benefits. Let us know about the 3-year policy.
How does this policy work
The 3-year car insurance policy offers a combination of both Own Damage (OD) and Third-Party (TP) cover for a full three years. Basically, it replaces the earlier structure, wherein the TP insurance was valid for three years but the OD coverage had to be renewed annually, with a three-year OD cover bundled with the three-year TP cover already mandatory for new cars. This means that the policy will not need to be renewed every year.
Big savings on premium
First and foremost, by taking a 3-year insurance policy, you can make big savings on premiums. In this policy, policyholders get the benefit of up to 10% discount on premium. For example, if the annual OD renewal increases by 5-10% every year, a three-year plan keeps the cost constant and also offers a discount of up to 10%. In this way, you are able to save a lot.
This is beneficial for those who want to save on motor insurance while keeping their vehicles protected for a longer period. Not only this, even if you make a claim, the premium remains locked for 3 years, whereas in a 1-year OD policy, the premium may increase after making a claim.
