In India, a bike is the most popular and preferred means of transport. With traffic congestion and narrow roads, a two-wheeler can help you reach your destination quicker than most other modes of transport. However, two-wheelers are also more prone to accidents as compared to four-wheelers. When you purchase a new bike, you look at factors like the price, mileage, features, etc. to make the right decision. Apart from these factors, choosing the best coverage for your bike is equally important.
Today, we will talk about how you can get the best coverage for your new two-wheeler.
How to get the best coverage for your new two-wheeler?
While third-party insurance is mandatory in India, it offers protection against damages or losses to third-party property or person(s) only. However, if your bike meets with an accident, it can get damaged too. These costs are not covered under a third-party liability policy. Hence, a comprehensive bike insurance policy is a better option since it offers third-party and own-damage cover.
Remember, insurance that does not cover all possibilities can still leave you in a financial loss. Hence, while choosing new bike insurance online, compare policies, and try to find the one with the most comprehensive coverage at the lowest price.
Here are some tips to help you choose the best bike insurance policy for your bike.
1. Assess your coverage needs
Most bike owners don’t know what they are looking for from the insurance policy. Hence, they either opt for a basic comprehensive plan or follow recommendations from friends or colleagues. However, it is important to remember that each individual is unique and has a unique insurance requirement. Hence, it is critical to assess your insurance coverage needs before you start looking online for bike insurance policies. Think about your usage of the bike, other liabilities and expenses before drawing a list of features you need from the policy. This will help you find the one that offers the best coverage to you.
2. Understand the technicalities associated with bike insurance
There are many technical aspects that you need to understand when it comes to bike insurance. The first aspect is the Insured Declared Value or IDV. This is the maximum sum insured of your bike. This is the amount that the insurer will reimburse if your bike meets with an accident and is damaged beyond repairs or gets stolen. A bike is a depreciating asset and loses value with every passing day. Hence, with every passing year, the IDV decreases, and so does the premium. Further, the engine capacity of your bike plays an important role in determining its premium. A bike with a higher cubic capacity attracts a higher premium.
Comprehensive insurance policies offer a range of add-ons that you can choose to expand the coverage based on your needs. Each add-on comes at a cost and increases your premium amount. Hence, it is important to ensure that you choose the add-ons you need. Some popular add-ons are zero depreciation cover, return to invoice, engine protect, roadside assistance, consumables protection, tyre protect, etc.
4. Research the insurance company
The quality of service provided by the insurance company is also important in finding the best coverage for your new bike. When you buy online bike insurance, the process and interface should be hassle-free and simple. Also, the company should have great reviews with respect to the overall processes and claim settlement specifically. Researching the company is an essential aspect of finding the right bike insurance policy.
5. Compare policies
While insurance is a highly regulated industry, there are differences between comprehensive policies offered by different providers. Hence, after you know what you want from the policy, start researching, and create a shortlist of policies that can work for you. Next, compare them based on the extent of coverage and premium rates. You can use the new bike insurance calculator offered by most insurers on their websites. Go through the inclusions and exclusions of the policies to make an informed decision.
Usually, bike owners buy the policy recommended by the bike dealer from where they purchase their vehicle. While this might not always be a bad idea, knowing what you want and comparing policies is a recommended way to finding the best coverage for your bike.
Remember, two-wheeler insurance is the financial protection to give yourself and your loved ones against damages or losses arising from accidents, collisions, theft, natural disasters, or man-made disasters. When you buy a new two-wheeler, you would want to have maximum protection since repairs can be costly and throw you finances off-balance. Hence, while buying a third-party policy is mandatory, a comprehensive policy with the right add-on covers is the best option. Follow the points mentioned above and compare policies before you sign the dotted line. Good Luck!