Buying a two-wheeler insurance plan is one of the first few things you need to do when you purchase a two-wheeler. We don’t need to tell you how important it is to buy one – in fact, it is mandatory to buy at least third-party insurance with the purchase of your new bike.
With so much emphasis on having a secure policy, no motor insurance requirements should be ignored. It is not something to be taken lightly, and there are many factors you must consider before you buy a policy for yourself.
Here we have compiled a list of factors that you need to keep in mind when buying a two wheeler insurance policy.
#1 Type of insurance plan
When choosing insurance cover, you need to decide between a third-party or comprehensive two-wheeler insurance policy. Your coverage requirements shall help you determine what policy you want to buy. A third-party policy will ensure you are protected from any third-party financial claims. This implies your insurer shall cover any damage or injury caused to another person. In case of comprehensive cover, the insurance cover extends to include any damages caused to your vehicle as well. It also includes any injury that you might face in such an accident along with a third-party cover.
#2 Coverage provided by your insurance policy
One must have a thorough understanding of which event is covered under your insurance plan. Knowing this will make it a hassle-free experience to file claims if required. In case you file a claim for an event thatis not covered by your policy terms, it can lead to rejection of your claim application leading to financial loss. Some common coverage that you must look for are –
- Coverage for third-party property damage.
- Coverage for third-party injuries.
- Coverage for damages to your vehicle in case of accidents.
- Coverage for injury to the driver or policyholder.
- Theft protection cover.
- Coverage from damage due to fire.
- Coverage from natural as well as man-made perils.
One must check for the coverage extended as this is what matters the most when making an insurance claim.
#3 Valuation of your bike
When buying a comprehensive bike insurance policy, the applicant has the option to set its insured declared value or IDV. It is the maximum value that your insurer will offer in case of a total loss. Thus, it is essential you set the right IDV. If you set a higher IDV, your premium will be expensive, and on the other hand, a lower IDV will result in lower insurance claim amount in case of total damage. The IDV is generally based on the current market value of your vehicle.
#4 Exclusions in your insurance cover
Exclusions to your policy are equally important as the coverage. The list of exclusions is available in the policy document and also at the time of purchasing motor insurance online.The exclusions will determine for which events a claim cannot be filed. Here are some common exclusions –
- Wear and tear due to regular use.
- Driving when under the influence of alcohol or other intoxicating substance.
- Accident outside geographical limits as set out in the insurance policy.
- Any damage due to nuclear reactions.
- Damage due to mechanical or electrical breakdown.
- Any other situation explicitly set out in the policy document as an exclusion.
#5 Insurer’s credibility
Credibility is an important factor when deciding on whether two wheeler insurance third party or comprehensive cover to select. Buying insurance plans from a reliable and trusted insurer is essential as it gives a sense of security that your claims will be processed. Also, when checking for the credibility of the insurer, one must check for the claim settlement ratio to understand how much percentage of the claim applications are processed.
So these are the key things to remember before buying two-wheeler insurance for your brand new vehicle. You can evaluate your desired policy’s quotes with the help of an online two wheeler insurance premium calculator before purchase. Just as you give priority to physical safety while riding your bike, you should give equal weightage to your financial security as well.