Bike insurance/two-wheeler insurance is an insurance policy that helps you to cover against damages that may happen to both you and to your two-wheeler due to events like accidents, thefts, fires, or natural disasters. According to the Motor Vehicles Act, it is illegal to drive a bike without at least a third-party liability two-wheeler insurance policy.
Here’s why having an insurance policy will provide adequate protection against liabilities arising due to damages to any third-party vehicle, property or person. Two-wheeler insurance covers different types of two-wheelers, like motorcycles, mopeds, scooters and more.
On the other hand, apart from third-party insurance, a comprehensive policy extends coverage for your own bike damages due to unforeseen accidents and natural calamities etc., and not just third-party liabilities.
Therefore, first-time bike insurance buyers must consider several factors between third-party and comprehensive insurance wisely before settling for a two-wheeler insurance policy.
Checklist to Follow for First-time Bike Insurance Buyers
Choosing a Third-party Insurance Cover
In case of an accident, if any third-party person or property gets damaged due to your bike, you will be liable to pay for the expenses. However, if you have an active third-party bike insurance policy, the plan will cover all such expenses and reduce your financial strain considerably.
While choosing a third-party insurance cover, make sure you check the following:
- The process of policy renewal
- No-claim bonus benefits offered by the insurer
- IDV value and the premium amount
2. Choosing a Comprehensive Cover
If you buy a comprehensive cover, the policy will cover both your own bike damages as well as third-party damages. This includes damages caused to your bike due to accidents, theft, fire, natural disasters, etc.
While choosing a comprehensive cover, you should look for the factors discussed under third-party insurance cover in the preceding section.
One key benefit of comprehensive covers is that most insurers provide the option of customising it with add-on policies. It is recommended to choose these add-ons to experience extensive benefits and more safety coverages.
- Zero Depreciation
- Roadside Assistance
- Return to Invoice
- Tyre protect cover
- Engine & gearbox protect
- Consumable covers
Among these add-ons, you can choose whatever works according to your needs. Therefore, for first-time buyers, a comprehensive bike insurance cover is a safer move
as it reduces your financial stress significantly in case of your own damages or third-party damages.
Also Read: Steps to Renew Expired Bike Insurance Policy
3.Know about IDV
Insured Declared Value or IDV in bike insurance is the total amount the insurance company will pay for your bike in case of a claim. The insurer sets the IDV by deducting the depreciation from the model’s listed ex-showroom price. It has a direct impact on your policy premium and the amount you’ll receive upon raising a claim.
So, before purchasing a policy, you should know about the IDV that is provided by the lender.
Some insurers also provide the option of IDV customisation, with which you can easily tailor the IDV as per your requirement.
If the IDV value is low, you will have to pay a lower premium and vice versa. However, note that a lower IDV value also translates to a lesser claim amount in case of accidents or theft.
4.Buy Insurance Online
It is always ideal to buy two-wheeler insurance online when compared to the traditional offline process. In the latter case, besides tackling the inherent hassles, you’ll also have to pay a broker or a middle man a certain amount, which might increase the overall premium amount. That’s not the case with buying insurance online, which is simple, transparent, and quick!
5. Compare Insurance by Different Lenders
It is always ideal to buy two-wheeler insurance online. Compare the insurance policy terms and conditions, features and benefits offered by multiple insurers before settling for one. As most of the lenders provide these insurance covers online, you should first compare bike insurance and then take your pick.
6.Check Network Garage Availability
Most insurers provide facilities to repair damages in the garages within their network. This is an important parameter to check before purchasing a comprehensive insurance cover or a standalone bike own damage cover.
Tips to Save on Two-wheeler Insurance Premium
Along with knowing the differences of insurance for a first-time buyer. It is important to also understand different leverages to pay your insurance premium and here’s how you can begin to save money with some insightful tips.
Tip 1: Choose a Higher Voluntary Deductible
A deductible is an amount you agree to pay from your pockets during claim settlement. Now, if you opt for a higher voluntary deductible, it reduces your overall financial strain as it lowers the insurance premium.
Tip 2: Accumulate No Claim Bonus
Insurance companies offer a discount on the premium amount during policy renewal for every non-claim year. Hence, it’s recommended not to make claims for minor mishaps that you can cover yourself financially. Accumulate no-claim benefits for consecutive years and save up on your insurance premium.
Tip 3: Opt for a Long-term Policy
Earlier, bike insurance policies had to be renewed every year. The IRDAI later introduced long-term bike insurance policies for convenience and extended security.
Such long-term policies are more cost-effective than annual insurance plans and come with a lower premium as well.
Hence, before you buy two-wheeler insurance online for the first time, you must consider the pointers mapped in this guide carefully. Also, be sure to apply the tips discussed here to save on your bike insurance premium.