Three-Year Car Insurance: Why You May Need to Renew After One Year

Your new car policy may have three years of third-party cover but only one year of own-damage cover. Third-party cover pays for covered injury or damage you cause to others; it does not pay for damage to your own car. In this example, own-damage cover has lapsed and the car hits a pillar two months later, leaving the owner to pay the fifty-thousand-rupee repair bill. Renew own-damage cover before it expires. Your existing third-party cover keeps its original expiry date. Ask your advisor to check both dates and arrange the right renewal. Cover periods and terms depend on your policy.