Bike Insurance: One-Stop Guide For First Time Buyers by Bajaj Allianz
Jul 21, 2020

Buying Bike Insurance For the First Time? Here’s All You Need to Know

Congratulations! You are now the proud owner of your dream bike. However, when you buy a two-wheeler you also need insurance coverage because it is mandatory as per the Motor Vehicles Act.

As a first-time motorcycle insurance buyer, you may be confused about how to go about procuring the best cover. Let us begin by understanding the two types of two wheeler insurance policies.

1. Third-party Cover

This type of policy covers any liability arising to third parties or damages to their properties. Additionally, the policy provides personal accident cover.

2. Comprehensive Cover

This kind of policy covers all benefits available with third-party insurance. Additionally, it offers personal accident cover and damage to your bike or loss occurring due to theft. You may also choose several add-on features with a comprehensive policy.

Steps to find the ideal bike insurance

Here are three simple steps to find the best bike insurance cover.

1. Know the Insured Declared Value (IDV)

The IDV is the maximum amount the insurance company will pay in case of a claim. It is important you compare the IDV offered by various insurers to avail of the best option.

2. Garage Network

It is beneficial to choose an insurer that offers a wide network of garages. This ensures you will be easily able to avail of cashless services in case the need arises.

3. Compare Different Policies

It is recommended you check different policies online. This will allow you to compare different quotes and understand the terms and conditions to help you buy two wheeler insurance online at the best premium.

How to save on premium

There are several ways to reduce the premium on your bike insurance. Here are three such ways:

1. Choose a Higher Voluntary Deductible

A voluntary deductible is an amount you would have to pay from your personal sources before the insurer pays for your claim. Based on the voluntary deductible amount, the insurance company offers you a lesser premium.

2. Accumulate No Claim Bonus (NCB)

For every no-claim year, the insurer rewards you with the NCB. If you do not file a claim for five consecutive years, you may be able to enjoy a 50% discount on the insurance premium. It is recommended you ride safely to ensure you are not involved in an accident.

3. Opt for a Long-term Policy

Insurers offer long-term policies when you choose to buy bike insurance. Choosing a long term two wheeler insurance policy helps you save money on the annual premium for third-party coverage increases while protecting the accumulated NCB.

Recommended add-ons with your bike insurance

Here are some add-ons you may include with your bike insurance:

1. Nil or Zero Depreciation

The value of your bike reduces over the years because of the wear and tear. When you opt for nil depreciation cover, you are able to protect the value of the claim due to theft, damage or loss. Moreover, replacement and repair costs of spare parts are also covered.

2. Loss of Accessories

You may add several accessories such as fancy lights, Bluetooth gadgets, seat kit and grills. It is possible that the accessories will be damaged in an accident or lost. This add-on provides you reimbursement of electric and non-electric accessories.

3. Pillion Rider Personal Accident Cover

Regular bike insurance offers coverage only to the owner or the rider. In case of an accident, possibly, the pillion rider may suffer from severe injuries. A personal accident cover for the pillion rider covers expenses arising in such situations.

Bike insurance is mandatory and it is important you choose the best policy that suits your requirements. You may take help of an online bike insurance calculator to know the approximate premium before purchasing new bike insurance and make an informed decision.

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