Given the huge traffic and consequent jams; two-wheelers like bike and scooters are a highly popular mode of transportation in India. But with most Indian roads characterized by bumps and potholes, poorly implemented traffic rules and careless and rash driving gives a staggering number of accidents involving two-wheelers. This along with compulsion by law makes purchasing a bike insurance a must.
Most bike dealers offer you a standard policy that may or may not be adequate for your needs. Here, we provide a systematic guide to you to shop and find the best insurance policy for your new bike. Stay hooked!
- Understand the type of insurance policies
Foremost, you must understand the type of policies available. There are two policy types for you to choose from. The first is the third-party insurance policy that is mandatory by law and covers damage caused to the third party involved in an accident with you.
The second type of policy is the comprehensive policy which included third-party insurance and extends protection to you and your bike. Hence, you must always go for a comprehensive insurance plan. Moreover, it can be easily tailored to suit your needs.
- Know your insurance options before purchasing a bike
Two-wheelers are considered a riskier proposition than four-wheelers and thus have a higher premium. Moreover, the type of bike and its cubic capacity will decide on the premium amount that you would need to pay for the bike. Most purchase a bike first and then hunt for its insurance policy but it should be the reverse. You must first find the approximate premium amount that you would need to pay for a particular model and then purchase it if everything is affordable to you.
- Understand Insurance Declared Value (IDV)
An important terminology that you need to understand clearly with your bike insurance is IDV. It is the current value of your bike and the maximum sum insured that you can take for your bike. It is the amount that the insurance company would pay you if your bike gets damaged beyond repair or completely totaled. As your bike gets older, the IDV value gets lowered and thus your payable premium amount also gets lowered. Hence, you must be clear about this concept.
- Compare different policies
According to IRDA, there are more than 28 insurance companies that are offering you Bike Insurance. Thus, you have plenty of choices in this department. It is wise to evaluate various policies on several parameters like payable premium amount, benefits offered, coverage, limitations, exceptions, etc. This will help you select the one that is most profitable for you.
- Be on the lookout of attractive offers
Like all businesses, the insurance industry is also a highly competitive market. Thus, most companies keep launching attractive discount offers from time to time to lure customers. You must always be on the lookout of such offers and take advantage of it when available. They always prove to be highly beneficial.
- Always go for a reliable insurance provider
You might get attracted to discounts but this should not deter you from choosing a reliable company. It always pays to check the reputation and reliability of the company online. One must always choose a credible company with a good reputation and a high claim ratio. It would mean that you would face the least hassle for your claim approval.
- Choose required add-ons for extra coverage
There are several other benefits available to you as a rider that can prove beneficial to you. Add-ons like zero depreciation offer and other benefits at a slightly higher premium amount will make your life much easier in the long run.
- Understand all factors affecting the premium
- We have already discussed a few factors that affect your premium. But there are plenty of other considerations as well. You must weigh in all factors and then make a judicious choice. One such factor is the deductible or the amount that you need to pay before the insurance company bears the cost. A higher deductible would lower the premium amount.
Another feature is adding coverage for custom parts, accessories, custom apparel, etc. All these would impact the premium amount.
It might look flimsy but choosing bike insurance is no mean task. It involves an almost equivalent amount of research and thoughts from your side as you would input while selecting a bike. But a wise decision would reap you benefits in the long run.