Looking to Buy a Bike Insurance Policy? Here is How You Must Choose the Best Insurance That Suits Your Bike

Two-wheelers are a common sight on Indian roads. It can be attributed to the various benefits they provide, including the ability to glide through huge traffic and narrow alleyways. But with the benefits, there also come certain negatives. No matter how skilled a biker you are, the chances of encountering a bike accident cannot be entirely overlooked, especially when driving on busy streets. It is where a bike insurance policy comes into the picture.

Also Read – A Beginner’s Guide to Two-Wheeler Insurance

The Indian Motors law has made it compulsory for two-wheeler owners to secure their vehicles under insurance before taking them out on Indian roads. Bike insurance covers the rider against financial liability arising from road accidents. If you have purchased a new bike, you should start looking for a reliable bike insurance policy at the earliest.

To help you ease the entire process, we have listed down specific parameters that you can consider to find the best policy from the rest. So let’s quickly take a look at the points shared below.

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1. Know the Policy Coverage

Before looking for bike insurance policies, make sure you have identified your requirements. There are primarily two types of bike insurance policies available, and you can pick one based on your needs. If you want coverage against third-party liabilities, third-party bike insurance will suffice. It will cover you against the financial liability towards any third-party individual(s) and property(s) involved in the accident. But it won’t cover the own damages.

If you want full coverage at a decent premium, you should look for comprehensive insurance. Comprehensive insurance covers own damage and third-party damages, ensuring you don’t have to bear a heavy financial burden during accidents. Now that you’re aware of what each type of insurance offers, take your pick accordingly.

2. Take a Look at the IDV

The Insured Declared Value (IDV) is one of the many insurance-related jargon people new to insurance don’t clearly understand. It is nothing but the current market value of your vehicle. Insurance companies decide on a vehicle’s IDV based on numerous factors, like vehicle’s age, brand, purchase price, condition, etc. You should always look for insurers willing to offer a higher IDV for your bike. Because the higher the IDV, the higher will be the claim value if your bike gets stolen or damaged beyond repair. But if you opt for higher IDV, it will result in higher premiums and vice-versa.

Also Read – How electric scooter fire forced centre to recall 2000 two-wheelers

3. Select the Best Premium Rate

Although the insurance company determines the premium rate, you can compare the different premiums being charged before deciding. One of the best parts of buying bike insurance online is getting the option to compare similar other policies before investing in one.

Once you have decided between a third-party and comprehensive insurance, you can search for similar policies being offered by different insurers, compare their premiums against the coverage, and then make an informed decision.  

4. Know About the Add-Ons

Add-ons, also known as riders, can be best defined as additional coverage. Irrespective of the type of bike insurance you buy, there will always be a scope of coverage enhancement. This coverage upgrade is done by purchasing add-ons. If you feel the standard coverage offered by a particular policy is not sufficient, you can upgrade the coverage by buying relevant add-ons.

The range of add-ons offered varies from one insurer to another, so always check what options are available at your disposal. Generally, top insurers offer add-ons like zero depreciation, consumables cover, roadside assistance, return to invoice, engine protection, etc. Since every add-on will increase your premium value, add only those you truly need.   

5. Look for Discounts or Deals

Finding discounts or deals should never be overlooked, as it can significantly bring down the premium amount. Check if the insurer you’ve shortlisted is offering certain offers in collaboration with particular banks or if a coupon is available online. A little, resourceful research online can go a long way in bringing down your premium payment.

6. Analyze the Claim Settlement Process

One of the prime reasons for insuring a two-wheeler is to get timely claim reimbursement after an accident. As a policyholder, you would not want yourself entangled in a cumbersome claim settlement process. You should always settle with an insurer known for timely claim settlement with minimal paperwork involved. 

If you’re buying bike insurance for the first time, check the claim settlement ratio of insurance companies over the past five years. The higher the claim settlement percentage or ratio, the better it is. You can also ask people in online insurance companies to share their unbiased reviews regarding the different insurer’s claim settlement processes.

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7. Premium to be Paid

Premium plays the deciding factor for many people while buying any bike insurance. If you’re one of them, too, this point is crucial. To ensure you get the very best insurance deal, always compare the premium being charged by different insurance companies and what coverage is being provided at that premium. You can use a reliable, online bike insurance premium calculator to get a fair idea of the premium charged.

Using a premium calculator is simple. Just provide accurate details, as asked on the screen, and it will display a near-accurate premium figure within seconds. You can use this during the policy comparison stage for best results.

8. The Reputation of the Insurance Company

A crucial thing you should never ignore is an insurance company’s reputation in the Indian market. While looking for two-wheeler policies, you can come across various insurance companies. But not all deserve your time. Some have a bad reputation for offering poor customer service and failing to meet the promised terms. To ensure you don’t end up with one such insurance company, always check what existing policyholders have to say about the insurer. You can gather information by joining online communities built on Facebook, Reddit, etc., around the Indian insurance landscape.

9. Purchase & Renewal

As a policy buyer, you should pay more attention to policies that come with minimal documentation hassle. The policies which are easier to purchase and renew take away much stress from the policy buyer/holder. A little online research about the shortlisted insurance company can give you all the answers you need to make an informed decision.

10. Co-payment and Voluntary Deductibles

For the uninitiated, a policyholder has to pay a certain percentage of the claim amount during the claim settlement process, and the insurer pays the rest. The amount which the policyholder pays is called co-payment or voluntary deductible. It is generally a small percentage of the claim amount, but it can be high for some insurance companies. If you don’t want to pay a significant amount from your own pocket during claim settlement, always look for policies with a low co-payment clause. Policies with a higher co-payment clause or voluntary deductibles generally have a lower premium and vice-versa.

Also Read – Did You Know about No Claim Bonus or NCB on Car Insurance Policy

Invest in the Best Two-Wheeler Insurance

Buying the best two-wheeler insurance is crucial for bike owners, as it can make a big difference when a rider encounters a road accident. Since the market is full of various bike insurance products offered by different insurers, it can be challenging for many to identify the best option. Hence, to make your decision-making process easier and hassle-free, we have listed all the parameters you must check before buying any two-wheeler insurance policy.

Checking a policy against all the points mentioned above can be arduous, but it will be well worth the invested time. Now that you have a checklist ready, start looking for a reliable bike insurance policy at the earliest.