4 reasons for purchasing a long-term car insurance policy
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In almost any country in the world, driving without vehicle insurance is unlawful. Whether you are a new driver or have years of driving experience, you are required by law to obtain car insurance to provide yourself with financial and legal protection against damages or injuries sustained in an accident.
In general, there are several types of auto insurance coverage available, some of which are mandatory and others are optional. Each coverage has a defined tenure of validity which can range from one year to three years. In order to reap all the benefits they offer, you need to renew your policy on time to avoid any penalties.
In some cases, many drivers purchase long-term car insurance coverage which has a validity of three years. It provides protection against third-party claims and can be used to compensate you in the event of damages, personal injury, and even death incurred in an accident.
In this post, we outline four reasons why purchasing a long-term car insurance policy is a good option for drivers.
Ensures optimum safety for you and your vehicle
Probably the greatest reason why you should purchase a long-term insurance policy is that it ensures the optimum safety for you and your vehicle. This means that if you get into an accident or your vehicle gets stolen or damaged, you can rely on your insurance policy to cover the damages and injuries sustained in the crash.
Because different auto insurance policies cover different things, you should research each one carefully so you can buy the one that best suits your needs. For example, if you live in Ottawa, Ontario, and need help finding a suitable car insurance plan, consult with reputable insurance brokers to help you find the best car insurance Ottawa has to offer for a fair price.
Offers more convenience
Convenience is another great reason why you should obtain long-term car insurance. People often forget to renew their policy on time which can be very dangerous and also unlawful. So, if you want to avoid the hassle of renewing your policy every year, purchasing long-term car insurance is the best solution for you. Doing so can be especially helpful if you are a busy person or get caught up in other daily activities that make you forget about renewing your insurance policy.
Also, by buying long-term insurance coverage you are minimizing the need for a comprehensive check of your vehicle every year, which is required with the one-year auto insurance policy.
Gets you more discounts on premiums
Another reason why purchasing long-term car insurance is recommended is that it can help get you more discounts on your premium. The thing is when you buy this coverage, you are required to pay the premium for three years. Because this can be quite expensive, many insurance companies offer a discount on the total amount to reduce your expenses.
For example, you can get a discount of up to 20% if you bundle your car and home insurance together, or if you have two vehicles under the same insurance. You may also get a discount if you have an anti-theft device installed in your car.
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Transfer of no-claim bonus
A type of discount many insurance companies offer their customers is the No-claim Bonus (NCB). This refers to the discount you get on your car insurance premium for not raising a claim during your previous policy tenure. You can significantly increase your NCB if you purchase a long-term car insurance policy and no claims were made in the past year.
In addition to this, some insurance companies also offer their policyholders the option of transferring their accumulated NCB when they buy a new vehicle or sell their old one.
Final thoughts
As a driver, you are required to have car insurance. Instead of purchasing the regular one which has a validity of one year, you should consider obtaining a long-term car insurance policy that lasts for three years. Not only does this offer more convenience, but it can also help reduce your premium costs and avoid policy expiry.
To find out more about this type of auto insurance coverage, refer to our post and read about the benefits you get from buying it.
