According to data, there are 160,000 car crashes each year in Canada, of which 2,800-2,900 result in deaths. Driving a vehicle without the proper car insurance can pose a serious risk. Not only are you exposed to exorbitant costs in the event of an accident, but driving without valid vehicle insurance paperwork is a legal offense. Driving a car without the right auto insurance puts not only you in danger but also your passengers and the other drivers on the road. The law was created to ensure that everyone is safe on the road.
There are several auto insurance coverage options, and some are mandatory while others are optional. Each policy has a specific period of validity, which can be anywhere from one to three years. To reap the full benefits of your insurance, as a car owner, you should renew it on time.
Some drivers opt for long-term auto insurance that is valid for three years. This insurance provides coverage against third-party claims and can be used as compensation in the event of damages, personal injury, and even death incurred in an accident.
This post outlines the main benefits of a long-term car insurance policy and why it makes sense for drivers to invest in one.
Table of Contents
It’s Highly Convenient
Renewing insurance policies every 12 months can be a real hassle. Most of us have hectic schedules and get caught up in our daily activities causing us to forget the exact dates for renewing our insurance policies. This can lead to the loss of certain benefits, such as premium or no-claim discounts.
Consider purchasing a long-term auto insurance policy if you can relate to this situation. By purchasing a long-term auto insurance policy, you can avoid the annual inspection of your car, which is required with the one-year auto insurance policy.
While it may seem complicated to compare different car insurance providers at first and determine what’s best for you, it doesn’t have to be that way. For instance, start by doing research and getting in touch with a reputable brokerage, such as Aha Insurance, that will help you select the best coverage for your needs and budget. If you want to get car insurance quotes from Aha Insurance all you need to do is talk to your broker and let them explain everything as it will make the process easier for you and ensure that you’re properly protected.
You and Your Vehicle Are Guaranteed Optimum Safety
The biggest reason to purchase long-term auto insurance is that you can be assured of the best possible safety for both you and your car. If you are involved in an accident, or if your vehicle is stolen or damaged, your insurance will cover your damages and injuries.
Also, you can avoid the risks of non-renewal. Driving without valid insurance, even for one day, could put you at risk. You will not be covered by your insurance if anything goes wrong while on the road. Traveling without insurance can have several financial and legal repercussions. In the event of an accident involving your car or bike, you are responsible for any damages caused to your vehicle and third parties, their vehicles, or their property. To avoid driving without car insurance, it is best to purchase long-term insurance.
You Can Get More Discounts On Premiums
Another advantage of purchasing long-term car insurance is that you can also get more discounts. When you purchase this insurance, you must pay for the next three years. Many insurance companies will offer discounts and greatly reduce the entire amount because it can become too expensive at once. As a result, these savings are passed to you as a policyholder, and you can profit from them.
For example, you can receive a discount of up to 20% if you combine your home and car insurance, or have two vehicles covered by the same policy. If you install an anti-theft system in your vehicle, you may be eligible for a discount as well.
Transfer of No-Claim Bonus
Many insurance providers offer their customers a type of discount known as the no-claim bonus (NCB). NCB is a discount that you can get on your insurance premium at any time. A long-term car insurance policy will give you a higher NCB than a standard one.
In addition to this, some insurance policy providers also offer their policyholders the option of transferring their accumulated NCB when they decide to buy a new car or sell their old one.
Final Thoughts
Long-term car insurance is guaranteed to be worth every penny you pay. Even though it costs a bit more than the comprehensive one-year car insurance policy, car owners will quickly understand just how advantageous this policy is in all aspects.
