Are you planning to buy your dream bike? Or, is it already parked in your garage? Now that you are past choosing your new ride, you must start thinking about finding the right motorcycle insurance policy to protect your bike. Just like you had considered factors such as the design, mileage, and price of your bike before buying it, you should contemplate your insurance policy requirements before paying the premium.
In India, bike owners must have a third-party insurance policy, failing which you can be penalised by the authorities. Here are some factors to be considered while choosing a bike insurance policy.
- Coverage required
Assess your coverage requirement and budget; your bike usage too plays an important role in the decision making. However, it is always a good idea to go for a comprehensive bike insurance policy for a new bike as it covers third-party damage as well as damages to your bike. Be aware of your bike’s cubic capacity (cc) when selecting a cover as it has a direct impact on the cost of the premium. Remember, the higher the cc, the higher would be the premium.
For extra protection, you can choose from various add-on covers based on your needs. The add-ons enhance the policy coverage over and above the features of a standard comprehensive policy. Some popular add-ons are zero-depreciation cover, roadside assistance cover, engine protect cover, and No Claim Bonus protector. Opt for what is necessary as add-ons come at an extra cost and increase the policy premium.
- IDV (Insured Declared Value)
It is the current market value of the two-wheeler minus depreciation. The IDV decides the sum insured (SI) that the insurer must pay if your bike is stolen or damaged beyond repair. Take care to see that the insurer does not fix a low IDV as it will lead to a low claim amount in future. Negotiate for a higher IDV even if it means that you have to pay a little extra. The best thing to do is to fix the IDV at a level that would be the closest to the actual market value of your bike.
- Select a reputed insurance company
Always associate with a reputed and trustworthy insurance company. Before purchasing the policy, check the insurer’s claim settlement ratio, time taken to process a claim, terms and conditions, policy exclusions, the list of network garages, and additional services provided by the insurer. Online reviews by the former and existing customers are a good way to know customer experience. You may also seek opinions and feedback from friends and acquaintances who are associated with the insurance company.
- Compare different plans
Today, most insurance companies have an online presence. You can research various policies and quotes either on their individual websites or on aggregator websites. Before finalising a particular policy, compare different plans, discounts, extra benefits offered by insurers and more online from the comfort of your home.
- Online transaction facility
Not only can you research and choose policies online, but you can also buy and renew policies through online platforms. Plus, you can file your claim online by uploading soft copies of the documents and filling out the online claims form. Just select an insurer with an online presence and all these can be done with a few clicks of your mouse.
- Voluntary deductibles
Voluntary deductibles are the amount that you agree to pay during claim settlement. If you increase the voluntary deductible in your bike insurance policy, the premium will go down. In return, at the time of claim settlement, you will receive a reduced claim amount. This is a two-way loss as you will pay the premium for insurance cover throughout, but in case of any damage to your bike, you will end up paying the major share of the cost of repair.
- Inclusions of the policy
Before purchasing a bike insurance policy, you should go through its coverage or inclusions. This is important as a policy should provide maximum possible coverage at the time of crisis. Based on this, you will be paying the premium to your insurer. In case of doubts, ask your insurer so that you have a clear idea about everything before making the purchase.
New bike insurance is just as critical as any other official document that allows you to ride your bike stress-free. Do not be hassled by the numerous policy options available in the market. Do your research, have clarity on what you need from your bike insurance cover and go ahead with the chosen policy with a reputed insurance company.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.