A Simple Guide to Bike Insurance for First Time Buyers

A two-wheeler is one of the most optimal ways to get through the congested traffic on the roads. Almost every two-wheeler available in the market offers a sleek and smooth design. They are built to get you through heavy traffic without any issues. You will not have to think about the parking space when you have a two-wheeler, and it also consumes less fuel.

A lot of two-wheeler owners chose bikes because of the convenience they provide. However, just because they have a compact design doesn’t mean that they are immune to accidents. Buying new bike insurance is a must when purchasing a bike. It is advised that you should research the bike insurance cost and the coverage it offers before you select one.

However, if you are buying bike insurance for the first time, the process can seem a little difficult. A lot of first-time buyers rely on the advertisements and marketing strategies set by the companies. Depending on these ways can give you a policy that may not be that useful to you. Your insurance needs should be customised to your requirements.

There are two types of insurance policies for two-wheelers available in the market:

The two types of bike insurance:

1. Third-party liability:

Third-party liability, also simply known as third-party insurance, will provide coverage against any expenses which are limited to third-party liability only. This insurance policy is compulsory in India as per the Motor Vehicle Act, 1988

2. Comprehensive bike insurance:

A comprehensive two-wheeler insurance policy will provide you with the coverage against the third party damage as well as damage and injury to you and your bike.

If you get comprehensive bike insurance, it means you have full protection against most of the expenses and will not have to pay the amount out of your own pocket. You can further expand your coverage with various add-ons like pillion rider cover, roadside assistance cover, etc.

Simple tips to follow when buying bike insurance:

1. Selecting an insurance provider:

Deciding on a suitable insurance company is as important as buying the correct policy. The insurance policy will not only provide you with the coverage but also with a lot of related services. You must research the different bike insurance companies offering these policies. Visiting their website can provide you with all the relevant information.

Read about the different policies they offer, the customer reviews and the overall reputation of the company. If you already have life or car insurance with a company, it will be feasible for you to select the same company. They can provide you with a customised deal since you are an existing customer.

2. Opt for a suitable policy:

A two-wheeler has a higher chance of being totalled compared to a car in an accident. Keep this in mind before buying a comprehensive insurance policy for a two-wheeler. It can also provide coverage against third party liabilities as well as own damage.

When you read the policy documents to make a choice, ensure that you check the inclusions. That way, you can decide if the offerings are worth the bike insurance price.

3. Don’t opt for a low IDV:

The Insured Declared Value (IDV) is the current market value of your bike. The IDV is the total sum for which your bike is insured, and it is used as a reference for the claim if the vehicle is destroyed or stolen. It is a belief that if you set a low Insured Declared Value (IDV), it will reduce the insurance premium. But, note that if you set a low amount, it also decreases the claim amount in case of theft.

4. Select the add-ons you need

Sometimes, the bike insurance policy you choose may not suffice. In that case, you can extend the coverage with the help of add-ons like pillion rider cover, roadside assistance cover and so on. These are some additional services that insurance providers offer for a certain cost. Of course, you need not add all of them since that will increase the premium amount; go only for the necessary ones.

An efficient way of carrying out this step is to understand your requirements completely and then add the add-ons to the policy. For instance, if you are going to ride the vehicle alone, you won’t need the pillion rider add-on.

5. Be ready with all the details

Purchasing an insurance policy for your two-wheeler can be quick and easy if done online. After you have selected the insurance company, you will need to be ready with your personal details like your date of birth, your address proof and an identification proof. You will also need to have your bike’s details at hand, such as its registration number, the manufacturing date, the make and the model of the vehicle.

6. Renew your bike insurance on time

Bike insurance is a contract between the insurance company and you. The insurance company guarantees financial coverage, and in return, you promise to pay your premiums regularly and renew your coverage on time. So to continue getting the bike insurance coverage, you need to renew your two-wheeler insurance before the expiry date. When you renew on time, you not only get continued protection, you also retain your No Claim Bonus.

7. What is No Claim Bonus?

No Claim Bonus is a discount reward on your renewal premium by the insurance company if you do not file a single claim in a policy term. NCB is a progressive discount. For the first year, you get a 20% discount on your renewal premium if you do not file a claim. The discount percentage goes up for every non-claim year, and you can get up to 50% discount after 5 consecutive non-claim years. Thus, bike insurance companies reward you for being a good biker.

Summing up

Buying bike insurance can sound quite scary when you’re doing it for the first time. But if you follow all the correct guidelines and tips, you can get the best policy for your two-wheeler. Getting the correct information, policy type, and add-ons are important for buying insurance.