Vehicle Insurance Renewal Single Year Vs Multi Year Policy Which Is Better

Vehicle Insurance Renewal: If you also drive your car, then you must be aware of the need for motor insurance. Insurance is needed not only to avoid police challan, but it helps a lot in case of accident or any untoward incident. However, buying vehicle insurance is not an easy task. Whether you are buying insurance for a new vehicle or renewing an old vehicle’s insurance, it is bound to be confusing.

There are problems while renewing

While renewing the insurance, the biggest problem is to decide which policy will be better? Buy a one year plan or will a multi year plan be beneficial? Don’t get stuck by buying a plan for many years? All such things come to mind and people keep getting confused, which makes it more difficult to take a decision. So let us make this problem easy for you.

Single Year Vs Multi Year Plan

First of all, let’s talk about the plan of many years i.e. multi year policy. In this, there is no hassle of renewing the insurance every year. Nor do you have to spend money every year for this. The confusion increases when there is more than one vehicle. Remember everyone’s renewal date, then fill all. In such a situation, buying a multi-year plan is a profitable deal.

These are also advantages of multi year plan

There is another big advantage of the multi-year plan. Inflation is increasing continuously and it is natural that the prices of all things are also increasing. Buying a one-year policy means paying a new price for car insurance every year, as the insurance company revises the rates almost every year. However, in case of multi-year policy, the current rate will remain the same throughout the term. That is, you can also save money by buying a plan for many years.

Single ear is better for these reasons

On the other hand, single year policy is cheaper, because here the money has to be paid only for one year at a time, whereas in multi year policy premium has to be paid for 2 or 3 years. In such a situation, the one-time burden remains less on buying a one-year plan. Another advantage of single year motor policy is that you have the freedom to change the insurance company after one year. If you do not like the service of the insurance company, then you can change the insurance company next year, whereas in multi year policy you have to remain bound with the company and its service for the entire policy period.