Growing Interest in 3-Year Comprehensive Car Insurance to Avoid Annual Renewals

Posted on: Jan 8, 2026 | 3 mins | Written by: HDFC ERGO Team

Growing Interest in 3-Year Comprehensive Car Insurance to Avoid Annual Renewals

Car 3 Year Car Comprehensive Car Insurance Trending

When you plan to buy a car, your secondary worry is likely to be insurance. Consider all the insurance options on the market. According to the Supreme Court order, all the vehicles sold after September 1, 2018, must have a three-year insurance policy. Therefore, you pay the insurance for three years in advance.

This rule applies to third-party car insurance. Make sure you follow the legal rules, but also think about your vehicle’s safety. You need a car insurance policy. It should cover third-party liability and damage to your car. It is best to get a three-year comprehensive plan to avoid annual car insurance renewals.

What is a Long-Term Comprehensive Car Insurance Plan?

A lot of people are showing interest in long-term comprehensive car insurance plans. The car insurance policy covers you fully for three years. It's a comprehensive plan. It stands out from typical car insurance policies. You need to renew traditional car insurance plans every year.

A long-term car insurance policy helps you avoid having to renew your premium often. That's a key benefit! This saves you from having to handle regular paperwork. This car insurance covers your vehicle fully against a range of risks.

Vehicle Insurance for Three Years: What's Included and What's Not?

When you apply for long-term car insurance, check what’s included and what’s not. Here are the details for what’s included and excluded. The inclusions and exclusions differ from those of third-party car insurance.

Inclusions

Damage to the car due to natural disasters such as floods, lightning, earthquakes, and cyclones.

Third-party liability coverage.

Damages from artificial disasters, such as riots, theft, and explosions.

Damage caused due to transit, whether air, road, or rail.

Add-ons for extra coverage to your vehicle.

Exclusions

Regular damage due to car wear and tear.

Electrical and mechanical breakdown.

Mandatory deductibles.

Damage due to depreciating value.

Driving without a valid licence.

What Are The Features of 3 3-year comprehensive Car Insurance?

A 3-year car insurance policy can be very helpful. It is crucial to look into its features before making the choice.

Below are the key features that you'll have to look into:

Longer Validity:

A long-term car insurance policy offers extended protection. There is no need for car insurance renewal every year. You get peace and the convenience of driving for the next three years. The single policy will be valid for the next three years.

Economical:

Renewing your car insurance means you’ll pay a little more. Buying one policy for three years costs less. It is significantly feasible as well.

NCB benefits:

You can transfer your NCB to a new car or a new owner. You can use this option if you buy a new vehicle or sell your current one while your policy is active. It can help you avail the discounted future premiums. Moreover, you can also get a reasonable price for your older car.

What Are the Benefits of a 3 Year Comprehensive Car Insurance?

A lot of people these days are opting for a long-term car insurance policy over a smaller one. At the same time, the regular car insurance plans are effective. They need to be renewed annually. This often increases the cost.

On the other hand, the benefits of a 3 Year comprehensive car insurance plan are numerous. The prominent benefits of this include:

Loyalty Rewards

Getting loyalty rewards and eventually discounts is one of the best things. Compared to regular car insurance plans, more extended plans offer more loyalty rewards. Some insurers offer loyalty rewards. These can be extra coverage perks or discounts. See if your insurance company covers these benefits.

Comprehensive Coverage

When you purchase third-party car insurance, it covers only what you owe to others. This means you won't be able to file claims if your own vehicle gets damaged due to accidents. However, with a comprehensive coverage insurance policy, you can file claims even if your car is damaged, along with third-party liabilities. To enhance your coverage, you might choose add-ons such as roadside assistance and zero depreciation. There are other options available, too.

Cost-Effective Premiums

Interest in long-term car insurance plans is growing. This is because these plans can save money. The cost of a three-year insurance plan depends on the insurer. The premium is less than what you’d pay for a usual annual car insurance policy. You’ll enjoy competitive rates and solid protection from yearly rises due to inflation or market shifts.

Stable Protection Against Market Fluctuations

Market changes often raise car insurance costs. So, when you renew your car insurance online, you'll need to pay more. The insurance sector is constantly changing. This means new laws keep coming. This increases the pricing. By choosing a longer policy, you shield yourself from market ups and downs. Therefore, you get greater value for money when you opt for car insurance renewal online.

Steps to Apply for Three-Year Comprehensive Car Insurance

If you want value and long-term benefits for your car, the three-year comprehensive plan is an ideal choice to make. You can easily apply for it online via the insurance company's website. However, you must add accurate details.

Step 1:

Navigate to the Buy Car Insurance section

Step 2:

Enter your car details (a new car). Three key details to include are the registration number, the make, and the model of the vehicle.

Step 3:

Pick Comprehensive Coverage and set it for 3 years. You can also choose the 1-year Own Damage insurance plan. The quote will be displayed to you on the screen.

Step 4:

Fill in your details—name, email, address, and phone number. Then, make the payment. Choose from one of the selected methods of payment.

Step 5:

Once we confirm your payment, you’ll get the policy details by email and SMS.

You can opt for car insurance renewal online for three years as it gets close to its expiry date. Just visit the insurance company’s website. Read about how to renew the policy in our blog, Lapsed Car Insurance Policy? Here's How to Renew It.

Conclusion

New rules require all new cars to have 3 years of third-party insurance. The comprehensive long-term car insurance policy isn't mandatory, but it's a good idea to get one. The comprehensive plan protects your vehicle and third-party liability. Most people prefer longer, comprehensive coverage. It’s easier to renew and helps them save money. You can compare the benefits and opt for it if that aligns with your needs.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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