Updated On: 2025-12-09

Author : Team PolicyBachat

Long-Term Two-Wheeler Insurance - Why Multi-Year Policies Save Money And Time

Renewing bike insurance every year is one of those chores riders forget - until a policy lapses.

That’s why IRDAI introduced long-term two-wheeler insurance policies, which let you stay covered for 2-5 years in one go.

No yearly reminders, no inspection risks, and major savings on premium hikes.

In Hyderabad, Telangana, more than half of new bikes are now insured under multi-year policies because of their convenience and lower cost.

This guide explains how long-term two-wheeler insurance works, its advantages, and why it’s the best choice for anyone looking for stress-free protection and long-term savings.

What is Long-Term Two-Wheeler Insurance

A long-term policy provides continuous coverage for 2, 3, or 5 years instead of one year. You pay a one-time premium and stay protected without annual renewals.

Policy Tenure Coverage Duration Renewal Frequency
1 Year 12 months Every year
3 Years 36 months Once in 3 years
5 Years 60 months Once in 5 years

Mandatory IRDAI Rule: All new two-wheelers sold since September 2018 must have at least 5 years of third-party cover.

Why Long-Term Insurance Makes Sense

  1. Saves money: Locks in current rates for multiple years - shields you from IRDAI annual premium revisions.
  2. Avoids lapses: No need to worry about missing renewal deadlines.
  3. Protects NCB: Continuous coverage helps you build NCB faster.
  4. Less paperwork: One policy, one payment, one reminder every few years.
  5. Lower inspection risk: Coverage remains active for years without break-in delays.

Cost Savings Example (3-Year Policy)

Bike Type 1-Year Premium (₹) 3-Year Policy (₹) Total Savings
Scooter 900 × 3 = 2,700 2,200 ₹500 (19%)
Commuter Bike 1,200 × 3 = 3,600 2,950 ₹650 (18%)
Sports Bike 2,400 × 3 = 7,200 5,900 ₹1,300 (18%)

(Values vary by insurer, RTO, and add-ons.)

Benefits of Long-Term Two-Wheeler Insurance

  • No Annual Premium Hike - locks in current IRDAI rates.
  • Continuous NCB Growth - claim-free years build uninterrupted discounts.
  • One-Time Payment Convenience - no annual reminders.
  • Inspection-Free Renewals - prevents lapse or break-in issues.
  • Discounts for Multi-Year Buyers - insurers reward long-term customers.

Add-ons Recommended for Multi-Year Policies

Add-on Why It’s Useful Long-Term
Zero Depreciation Full claim value for all years - best for new bikes.
NCB Protect Keeps NCB intact across 2-3 years even after small claims.
Roadside Assistance Multi-year coverage for emergencies anywhere.
Engine Protect Especially valuable in flood-prone cities like Hyderabad.
Return to Invoice Protects against theft or total loss.

Who Should Opt for Long-Term Coverage

  • New bike owners (required for 5-year TP).
  • Busy professionals who forget renewals.
  • Riders in flood or theft-prone zones.
  • People planning to keep their bike for 3+ years.
  • Families with multiple bikes - easier to manage as a group plan.

Local Insights for Hyderabad

  • % of new bikes under 3-5 year plans: 46%
  • Avg. premium savings: ₹2,800 per bike.
  • Top insurers with long-term discounts: HDFC ERGO, ICICI Lombard, Bajaj Allianz.
  • Most popular tenure in Maharashtra: 3 years.

How to Buy a Long-Term Policy Online

  1. Visit PolicyBachat → Select “Two-Wheeler Insurance.”
  2. Enter bike registration number and city.
  3. Choose tenure (1, 3, or 5 years).
  4. Compare premiums from multiple insurers.
  5. Add relevant add-ons and pay securely.
  6. Get your e-policy instantly - valid for full term.

Pro Tip: For new bikes, always choose 3-year comprehensive + 5-year third-party combo for maximum protection.

Drawbacks to Consider

  • Upfront payment slightly higher.
  • Cancellation refunds are pro-rated (you don’t get full refund if canceled early).
  • Add-ons fixed for full term - cannot change mid-policy.

Get Your Two-Wheeler Covered Today

FAQs

Is long-term two-wheeler insurance mandatory?

Only 5-year third-party cover is mandatory for new bikes; long-term OD is optional but recommended.

Can I cancel my long-term policy early?

Yes, but refund depends on remaining period.

Can I switch insurers mid-term?

Only during renewal after expiry.

Does long-term policy cover theft?

Yes, under comprehensive coverage.

Can I pay in instalments?

Some insurers offer EMI options.

Does claim affect long-term NCB?

Yes, resets NCB for all remaining years.

Do I get discounts on 5-year policy?

Yes, most insurers offer 15-25% long-term discount.

Can I add or remove add-ons mid-term?

Only at renewal, not mid-policy.

Is long-term TP cover cheaper?

Yes, IRDAI offers bundled TP discount.

Does it apply to electric bikes?

Yes, EVs can also take 3-5 year policies.

What if I sell my bike mid-policy?

Transfer remaining coverage to new owner.

Can I renew early?

Yes, within 45 days before expiry.

Is long-term insurance available for old bikes?

Yes, up to 10 years of vehicle age with inspection.

Do insurers inspect at renewal?

No, long-term policies skip annual inspections.

Can I convert 1-year policy to long-term later?

Yes, at next renewal cycle.

Customer Reviews

  • “Switched to a 3-year plan - no more renewal headaches!” - Rohit Sharma, Pune
  • “Saved ₹800 instantly by going long-term.” - Pooja Menon, Kochi
  • “Worth it - peace of mind for the next 5 years.” - Sandeep Verma, Delhi
  • “PolicyBachat showed me 3 insurers side by side - super convenient.” - Farhan Shaikh, Hyderabad
  • “I forget renewals - this solved that problem completely.” - Reena Nair, Bengaluru
  • “Affordable one-time payment, no hidden costs.” - Deepak Rathi, Mumbai
  • “Engine Protect and RSA for full 3 years - perfect combo.” - Anita George, Chennai

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