Two-wheelers are among the most common modes of personal transport in India. It suits Indian road conditions, especially on traffic-congested roads. It allows you to move faster in traffic, but it also puts you in danger of unintended fatalities and injuries.
Protect your vehicle with robust insurance for bike to minimise losses due to an accident involving your vehicle. You can choose from a wide range of options available in the market. However, choosing the policy that best suits your needs and is within your budget can be tricky, but not impossible if you keep a few things in mind.
How to Select the Best Two-wheeler Insurance
Insurance for bikes, like any other insurance, must be a well-researched decision made after evaluating your needs and comparing various insurance plans. Here are some things to consider when choosing bike insurance:
- Understand your coverage needs
Before you start looking for insurance, be clear about your needs and budget. There are two types of bike insurance—third-party and comprehensive. Choose insurance type based on your bike usage and budget.
- Timely renewal of the policy
Buying insurance for a bike is not enough. You must renew it on time to enjoy uninterrupted benefits. When you go for a lapsed policy renewal, it may attract inspection by the insurer and a higher premium cost. Furthermore, if you suffer an accident while your coverage is inactive, you cannot raise a claim. Most insurance companies give you a buffer time to renew your policy after its expiration. If you fail to renew your policy within that window, the insurance provider will terminate your policy.
- Understand Insurance Declared Value (IDV)
In simpler words, IDV is a vehicle’s current market value. IDV is the highest sum insured determined at the time of insurance purchase and is the amount paid in the event of theft or total loss of the two-wheeler. As the bike ages, its depreciation rises, IDV falls, and the premium falls year after year. IDV is one of the most important factors in calculating two-wheeler insurance rate quotations.
- Compare bike insurance
Compare bike insurance plans before purchasing the one you like the most. Comparing plans for premium amount, features, benefits, inclusions and exclusions and more is important in making an informed decision. Choosing the insurer offering the best deal is easier when you compare bike insurance offered by different insurance companies.
- No Claim Bonus
No Claim Bonus is the reward offered by the insurer to the policyholder for not making a claim during the policy period. It is given as a discount on the policy premium at the time of renewal. NCB increases by a certain percentage for every consecutive claim-free year and goes up to 50% for five consecutive claim-free years. This translates to a 50% discount on the premium at the time of policy renewal.
To avail of the benefit, remember to mention your No Claim Bonus to the insurer when renewing the policy. If you change insurers, you must transfer your NCB so that it can be applied to your new insurance rate.
- Keep a clean driving record
A clean driving record plays a big role in obtaining affordable insurance for bikes. Insurers consider you a high-risk driver if you have been in an accident or received several traffic tickets. Keeping a spotless driving record establishes you as a safe and responsible driver, which means lower premiums.
- Select a reputable insurer
Always opt for a reputable insurance company. Check the company’s claim settlement ratio to see how effective the insurer’s claim process is. Selecting reputable insurance ensures that claim payment is quick and easy.
- Comprehensive policy
Comprehensive insurance provides substantial coverage. It comprises the mandatory third-party policy and the much-needed personal damage coverage. However, it comes at a higher premium cost compared to standard third-party insurance.
The comprehensive cover allows you to buy add-on covers at an additional cost to enhance coverage. Some popular add-ons include zero-depreciation cover, roadside assistance cover, and engine protection cover. Assess your insurance needs and buy add-ons strictly based on your needs.
- A higher deductible means a lower premium
Increase your deductible to lower your two-wheeler insurance cost. As a result, you will be responsible for a greater portion of any losses in the event of an accident. However, if you are in an accident, you may have to pay extra out of pocket. So, consider your alternatives and select the deductible that is most appropriate for you.
There are two types of deductibles in insurance for bikes—mandatory deductible and voluntary deductible. Already included in the insurance policy, a mandatory deductible is an amount that you must compulsorily pay at the time of claim settlement. Meanwhile, a voluntary deductible is a predetermined amount that you choose to pay before the insurer settles the claim. So, the higher the voluntary deductible, the lesser will be the claim settlement amount, which means a lesser insurance premium. You are eligible for a premium reduction because you are shouldering a portion of the claim and decreasing the insurer’s claim responsibility.
Insurance for a bike is a money saver. It helps you abide by the law and limits your unneeded and unexpected financial constraints. However, remember to compare bike insurance to ensure you bag the best deal available in the market.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.