A new bike comes with the added responsibility to ensure your safety on the road and that of others. Therefore, it becomes essential to opt for bike insurance at the earliest. However, there is a wide range of insurance providers in India and choosing one can be a tough call.
So, allow us to offer some tips and tricks to buy insurance for your motorcycle.
Top Tips to Buy an Insurance Cover for your New Bike
- Compare Third-Party Liability Insurance vs. Comprehensive Insurance for better Coverage
First things first, motorists must choose between third-party liability insurance and a comprehensive one. Moreover, it is important to note here that having at least a third-party liability insurance cover is mandatory as per law. It is an insurance plan that safeguards the owner against third-party liabilities arising from an accident. Therefore, such a plan offers coverage against physical injuries and property damages incurred to a third party due to your vehicle.
Comprehensive insurance on the other hand, covers own damages along with third-party liabilities. In addition, it offers coverage against calamities, accidents, thefts, etc.
So, you must compare the features and prices of a policy before purchasing it.
- Selecting the Right Insurer
When buying a bike insurance cover, individuals should go for a reliable insurer. Therefore, you should choose an insurance company based on its reputation, services, claim procedure, claim settlement ratio, and customer reviews.
- Opt for Add-on Policies
Comprehensive insurance policies come with certain exceptions. As a result, you can customise your comprehensive insurance cover with add-ons so that these factors are also covered. Moreover, given that some individuals may not wish to avail of additional features in exchange for extra charges, add-ons are kept separate and provided as an option.
That said, opting for add-ons to a comprehensive plan will enhance its coverage. As these are available for an additional charge, it is best to select vital add-ons, such as zero depreciation cover, breakdown assistance, engine and gearbox protection, return to invoice cover, and consumable cover.
- The IDV Factor
IDV of a motorcycle reflects its current market value which gets fixed at the time of buying a policy. Therefore, if a bike gets lost, stolen, or damaged beyond repair, its owner will receive this IDV amount.
Moreover, as the vehicle depreciates over the years, its IDV decreases, and the premiums get lower year on year. In fact, IDV is one of the determining factors of bike insurance premiums. So, you can ascertain your insurance plan’s premium based on its IDV or by simply using a two-wheeler insurance premium calculator.
- Select Voluntary Deductibles
Deductible in insurance is the portion of a claim that the insured pays before his/her insurer pays the remaining amount. Before purchasing a bike insurance plan for your new motorcycle, you should know that there are 2 kinds of deductibles, namely compulsory and voluntary deductibles.
A compulsory deductible is one wherein you, as an insured, have to compulsorily pay a part of the claim. On the other hand, a voluntary deductible is when you pay a portion of the claim, which your insurer was supposed to pay.
As one opts for voluntary deductibles, his/her premium gets lowered. That said, it also reduces the claim amount. Therefore, while voluntary deductibles can be beneficial for motorists who never file a claim, it is not very resourceful for those who raise claims frequently or commute through accident-prone areas.
And that marks the end of this article. We suggest that you bear the above-mentioned tips in mind and choose a bike insurance plan for your new motorcycle that suits you best.