Are you planning to buy a new bike? Great! There must be thousands of things going in your mind to ensure you make the right choice. Price, color, mileage, performance and many other factors should be on your top priority list. Among your list of important factors, make sure you add bike insurance as a top priority.
When it comes to buying a two-wheeler, basic third-party insurance is mandatory by law if you want to drive your bike on Indian roads legally. But how far is it going to secure your finances? The answer is, it only saves you from third-party liability. This is why you should consider a comprehensive bike insurance plan to begin with.
Factors that you must consider
There are several factors that you should consider while choosing the right insurance policy for your bike. For first-time buyers, the process can get overwhelming as there are a lot of options available in the market. To make things easier for you, here are 10 tips for first-time Bike Insurance Buyer in India.
1. Third-party bike insurance is mandatory
As per the law, you must get a third-party bike insurance policy before you start driving the bike on Indian roads. It provides cover in case you cause damage to a third-party that can be a person or property in an accident. The insurance company will provide financial support to the injured or for the repair or replace the damaged property. Please note that the damage can be to a vehicle or any other property belonging to a third-party. With such a cover, you will not get compensation for the damage to your own vehicle.
2. Opt for comprehensive cover
Countless factors can cause damage to your vehicles such as accidents, riots, thefts, natural or man-made disasters and more. In such cases, if you do not have a comprehensive insurance cover, you will end up paying for the damages from your pocket. Thus it is suggested that when you are buying a bike insurance plan, you should opt for a comprehensive one as it will provide cover for third-party as well as for the damage to your own vehicle.
3. Add-ons are important
When you get a basic insurance cover, there are several aspects that the insurance company does not include in it. However, by paying an additional premium, you can add a lot of things to your insurance cover such as:
- Personal accident cover: This add-on will provide you with financial support in case of temporary or permanent disability occurred due to an accident. In case of death, your family will get a lump sum amount as compensation.
- Roadside assistance: This add-on will provide you tow facility to the nearest service station. Some insurance companies also provide an on-site repair facility if you get stuck on the road due to a minor problem with the bike.
- Medical cover: This add-on will cover medical expenses that occurred due to an accident. It includes hospitalization as well.
Apart from these add-ons, there are many to opt from. Some add-ons are exclusive to the insurance companies so before you choose the plan, please check and compare add-ons from different companies as well.
4. Opt for deductibles
Deductibles are the repairs and replacements that you opt to pay yourself. By choosing deductibles, you share the cost of any repair or replacement with the insurance company. This option helps a lot when you want to lower down the premium cost that you have to pay annually. Please note that you should only opt for additional deductibles if you are sure that you will be able to pay for them.
5. Bundle up a bike insurance
Some insurance companies offer a discount on bike insurance policies if you are already their customer for other policies like home insurance. In this way, you can save a substantial amount on the insurance premium of your bike.
6. Do not jump to opt for dealer bike insurance
Every bike dealer offers insurance policy when you buy a bike from them. It seems a good idea to buy the policy from them to reduce the workload you have to go through to get a policy. However, you may end up getting limited cover or only third-party cover with the policy they are offering. It is always better to scroll through other options available in the market and compare them before you finalize a policy for your bike. It is important to choose the policy that can provide you with maximum coverage with a lesser headache.
7. Insured declared value or IDV is important
The insurance companies like bike insurance with the Insured Declared Value. It is basically the maximum amount that you can declare in case of theft or damage. Please note that it varies from company to company and from plan to plan. Before you choose a bike insurance policy, make sure to check IDV and ensure that you are getting maximum cover.
8. Research properly
There are a lot of options to check and compare different insurance plans. You can either check websites or different insurers or check an aggregator’s website where they provide information and option to compare plans from almost every insurance company. It is also advised to check with family and friends before choosing an insurance plan. There are different ways to check unbiased reviews of the insurance policies. Please note that you should check reviews posted on websites not owned by the insurance companies; otherwise, you may end up falling for the non-genuine reviews.
9. Try to improve your credit score
Many insurance companies check your credit score and consider it as one of the important factors in deciding the premium. It is better to have a healthy credit score so that you can get a discount on the premium.
10. Ask questions
If you are confused about any terms and conditions mentioned on the form, make sure to ask the insurer about it. Read the fine print carefully before signing the contract. Also, read about the claiming process and make sure you understand it.
Final words
Bike insurance is an important investment that you should make to keep your finances secure. These insurance policies provider cover against third-party liability and damage to your own vehicle. By keeping the above-mentioned tips in mind, you can choose the best plan available in the market that will provide you comprehensive cover at an affordable price.
