Choosing a bike insurance policy

Individuals purchasing a new two-wheeler can consider obtaining bike insurance from reputed insurers. Two-wheeler insurance policies are highly beneficial as it covers the costs of damages a vehicle might incur due to an unfortunate event.

Several insurance companies offer attractive deals on motor insurance considering a motorist’s requirements. However, making a sound decision regarding insurance plans can seem a bit tricky. To avoid any hassle, here is a piece of tips to follow while choosing an insurance plan for a bike. Factoring in these points will help individuals choose a plan that offers maximum benefits.

Also Read – 5 Smart Tips to compare car insurance policies before buying

Why should you buy a bike insurance policy?

Like any other vehicle, motorcycles are susceptible to risks and damages from an accident or collision. Bearing the costs of repairing such damages can become expensive for some. In this regard, a well-rounded bike insurance policy
can cover those costs and help reduce financial liabilities.

Moreover, as per the Motor Vehicles Act, 1988, every bike owner must at least possess a basic insurance plan for their bike to avoid hefty traffic penalties.
Additionally, insurance for a bike also helps an individual in times of serious accidents resulting in permanent damages or death. As per the IRDA, a person and their family are liable to receive personal accident coverage under an insurance plan.

Essential tips and tricks to buy the best bike insurance policy for you

Apart from competitive premium rates, a potential insurance policy buyer must factor in some other points. Fortunately, it will help them choose an insurance plan that comes with maximum benefits at a reasonable rate.

In this regard, here are some tips to follow that will help in making a confirmed decision:

Know what coverage you need

It is imperative that one must settle for a motor insurance policy that comes with a maximum coverage limit. However, it is practical to consider the budget and requirements before choosing such a plan.

Based on a coverage limit, two insurance plans are available for a bike, i.e., third-party and comprehensive insurance. Depending on the usage of a two-wheeler, expenditures, and current liabilities, one should choose a plan among these two options.

However, individuals obtaining only third-party insurance will only get coverage against third-party damages. For complete coverage, comprehensive insurance plans are ideal.

Understand IDV

Insurers give a return amount depending on a bike’s Insured Declared Value (IDV) in case of unfortunate incidents such as theft or irreparable damages. They find out this value by subtracting the bike’s depreciation from its manufacturer’s selling price. As the bike ages, its depreciation value increases, and the IDV falls, resulting in lower premiums.

Thus, a bike’s IDV determines its insurance premium and becomes a vital factor to consider before purchasing a plan. Some insurers give the option of IDV customization where an individual can choose a value as per their requirement and maximize the return.

Also Read – What You Should Know Before Buying Car Insurance

Choose a reputed insurance provider

Before choosing an insurance provider and its respective plan, one should be aware of certain factors like claim settlement ratio, claim process, etc., for a seamless experience. Ideally, an insurer with a high claim settlement ratio is preferable because the claim process is efficient. It is always practical to choose an insurer who settles claims easily without much turnaround time.

Compare bike insurance online
Choosing an insurance provider and its individual plan can be a daunting task as there are numerous insurance companies available. To select the best insurance plan for a bike, one should compare the insurers and their respective plans online. This will allow them to go for a plan with maximum benefits.

Some points to consider while comparing insurance plans are:

  • Cashless facilities
  • Claim settlement ratio
  • Claim procedure
  • Add-on options

Go for add-on covers

A comprehensive insurance plan for a bike might not provide complete coverage against damages. To that end, one should purchase add-on policies over and above a basic insurance plan against additional charges. An add-on cover provides an additional layer of protection to a bike. However, one needs to increase the existing policy premium by a nominal amount to avail of this benefit.

Some of the add-on policies to choose from are:

Therefore, it is evident that an insurance plan with correct coverage can effectively reduce the financial burden. Following the aforementioned tips can further decrease liabilities and ensure maximum benefits from an insurance policy.

Also Read – Know All About Third-party Car Insurance Claim Settlement Process

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