In India, two wheelers are the most preferred mode of daily commute. It’s easy to commute, quick and less-expensive to maintain. However, bad weather, crowded roads, rash drivers and host of other things that can lead to accidents- and accidents costs a bomb. Hence, you must insure your two wheeler adequately to save yourself from financial trauma. Buying bike insurance can be tricky at times if you are clueless on what to do and what not.

Here are few do’s and don’ts that need to be kept in mind while buying bike insurance:

Do’s

  • Declare correct IDV (Insured Declared Value): IDV is the amount that you get in case your vehicle suffers a total loss or gets stolen during the policy period. Be it a new bike insurance or renewal of insurance, insurer decides the premium and coverage limit based on the Insured Declared Value (IDV) of your vehicle. With the ageing of your bike, IDV reduces as depreciation is taken into account. Declaring a lower insured declared value may get you low quotes on your bike insurance. However, it hits you at the time of loss. Hence, it’s important to know the correct market value of your two wheeler while buying bike insurance.
  • Evaluate your Need and Choose the Right Type: Mainly, there are two types of bike insurance offered to customer. Third-party insurance, which covers your legal liability against death, injury and property damage caused by your two wheeler to third party. Third party motor insurance is a compulsory legal requirement to drive your bike on Indian roads. Comprehensive bike insurance covers your bike against theft, damage and loss along with offering third-party cover and personal accidental cover for owner rider in the event of accident. Along with this, many insurers even offer riders or add-ons to cover a specific risk (at an extra cost). One needs to evaluate the need and make a right choice. It’s always recommended to opt for comprehensive coverage keeping in mind the growing risk on road.
  • Comparison Shopping: Most important thing is to compare before you choose. There are many online portals that can give you comparative quotes on different policies from various insurers. Along with cost, compare the features, extent of coverage, service quality and claim efficiency etc to make an informed choice. Comparison shopping helps you take the benefit of competition.
  • Look for Discounts and Benefits to Lower the Cost: You can reduce the cost of your insurance in many ways without compromising on quality. There are many insurers who offer discounts on occupation and installation of security-devices You can look for such offers. In case of renewal, you can check on the no claim bonus benefit and claim the same to get your premium reduced.
  • Read the Fine Prints before you Buy: Be it a new policy or renewal, it’s essential to take a close look at the terms and conditions of the policy. Read all the clauses thoroughly to know the exclusions and the limitations of the policy for hassle-free claims in future. Hence, read the fine prints carefully before you sign on the dotted line.

Don’ts

  • Incorrect Declaration: Insurer determines your insurance cost based on the information that you provide such as bike manufacturer, fuel type, previous claims and your occupation etc. Any incorrect and false declaration may lead to cancellation of policy by the insurer. It’s better to declare everything correctly instead of landing yourself in a trouble.
  • Opting for Inappropriate Deductible: Do not go for higher deductibles just to get your insurance cost reduced. Deductible is something that you need to pay out of your pocket at the time of claim. Evaluate the policy in terms of both benefit and cost and then choose the deductibles appropriately.

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