Owning your first two-wheeler instils a sense of pride in you. It can reduce your dependency on public transportation and is one of the easiest ways to get through heavy traffic. To make sure that such a trusty bike is always protected, you should also purchase a bike insurance policy. According to the Motor Vehicles Act, 1988, having insurance for your bike is a legal compulsion. When buying a two-wheeler, bike insurance is an equally important purchase. Since the process of buying a policy may be a little difficult for first-time buyers, here are some tips you can follow:
Why must you always keep your bike insured?
A third-party bike insurance policy does the bare minimum to protect your bike. But at the same time, not having one can get you into legal trouble since having it is mandated by law. The only protection you get from third-party insurance is the legal costs that arise due to accidental damage by your vehicle to a third-party person or property. A third-party cover usually comes with the purchase of a new bike, but you can also select an insurance provider of your choice.
A comprehensive bike insurance policy can go a long way in ensuring that your bike is always well-protected. Since accidents are unpredictable, leaving your bike without an insurance cover can turn out to be expensive. It always helps to buy two-wheeler insurance as soon as you buy your new bike. That way, you won’t have to risk leaving your bike without protection, even for a day!
Tips to follow when buying insurance for your bike:
- A good insurance company:
Selecting the correct bike insurance company for your policy is an important decision as they will provide you with financial coverage. Before buying the policy, you must go through the company’s website and look through the reviews posted by other customers. An important factor to consider is the claim settlement ratio of the company. This ratio is the number of claims filed vs the number of claims settled by the company. It will help you understand whether the company will honour your claim, if and when the need arises.
- Details required:
Once you have narrowed down on the insurance company, you will need to be ready with the details related to your bike and you. The insurance premium on your policy will be based on factors like the cubic capacity of the bike, manufacturing date, make and the model of your bike. These details are important when buying an insurance policy. You can find these details on the purchase invoice of your bike.
- Policy type:
When buying new bike insurance online, you will have the option of comparing the different policies in the insurance types – third-party and comprehensive. While a third-party cover is a legal requirement, it only protects you from third-party liabilities. Purchasing a comprehensive policy is better, considering the extensive coverage it provides, along with third-party liability. An online bike insurance calculator can be of great help while choosing an affordable bike insurance plan. Comprehensive policies are available with a choice of multiple add-ons, which can increase the premium. An insurance premium calculator will help you find the right combination of features in your budget so that you buy the optimum coverage for your bike.
- Do not opt for a low IDV:
A lot of people believe that if they opt for a low IDV, they will have to pay a low premium. While this is true, it also means that setting a low amount will also decrease the claim amount. IDV is the sum assured that you would get when you file a claim for the total loss or theft of your bike. The IDV is the existing market value of the bike, and so, you need to be careful that the sum assured you receive in an emergency should be as much as the bike’s value and not less.
- Select the add-ons you want carefully:
Add-ons are additional coverage that you can include with your insurance policy. Even though comprehensive plans provide enough protection, some add-ons like emergency medical expenses or roadside assistance can enhance the insurance cover. However, you should pick only the add-ons that you require, since every add-on policy will increase the two-wheeler insurance cost.
- Go through the policy document:
It is important to read the complete policy documents when purchasing the insurance. Since the policy is going to be in your name, you must be completely sure of what it includes. Apart from the coverage, you must also understand the different jargons used in the policy document. A first-time buyer may not understand the specific terms used. You can also get help from someone who knows the insurance industry better.
Bike insurance is a necessity to preserve the longevity of your bike. But as a first-time buyer, one needs to be well-informed and wise while purchasing a policy. An insurance policy for a two-wheeler may seem a bit heavy on the pockets, but the complete protection it provides is much more useful in times of need.