There’s nothing quite like the freedom and thrill of riding a motorcycle. But one of the most crucial things that you must not ignore while buying a new bike is getting the right bike insurance policy. While third party bike insurance is mandated by law, comprehensive coverage is necessary to protect you from financial troubles in event of any unfortunate event.
However, with so many options out there, choosing the right policy can seem like a daunting task. That’s why; we have consolidated this step-by-step guide to help you understand the process of buying bike insurance.
By the end of this blog, you will know where to look for the right insurance policy, how to compare, the parameters to check, and how to complete the entire process of buying bike insurance.
An Essential Guide to Understanding the Process of Bike Insurance Purchase
- Know the types of bike insurance policies.
Bike insurance policies are of two types: third-party bike insurance and comprehensive bike insurance policies. Firstly, you must know the difference between these two to choose a suitable policy as per your requirements.
A third-party bike insurance policy is one in which any liability arising out of a third-party claim is covered. Third-party bike insurance is mandated under the Motor Vehicles Act of 1966.
A comprehensive bike insurance policy is one that provides several other coverage benefits along with third-party coverage. It is often more beneficial to purchase a comprehensive plan than just a third party bike insurance policy, as it keeps the policyholder protected against various possible liabilities that may arise, such as bike damage repair, renewal, replacement, etc.
- Compare the IDV, or insured declared value from different insurers.
The IDV of a bike refers to its approximate current market value, setting the maximum value of a claim that the insurer may provide for your vehicle under the policy. The IDV of your bike can vary from one insurer to another.
You must thus compare the IDVs that different insurers are offering to determine the best insurance coverage possible for your vehicle on the market. Note that while the IDV may not be exactly equal to your assessed value, you must not settle for a low IDV as it limits the claim amount significantly. Also, the premium cost of your bike insurance can vary with the IDV agreement. Hence, you must decide on the policy carefully.
- Check out the available garage network.
One of the essential things to check for your bike insurance policy when purchasing one is the availability of network garages. Having the maximum number of network garages is always a good thing. A network garage is the one that has a tie-up with the insurance company. You can avail cashless repair facility in these garages. This means you won’t have to pay anything out of your pocket.
In addition to this, the process becomes very smooth. The paperwork is directly submitted by the garage to the insurer, and you have a minimal role to play. So, always check for the maximum garage network.
- Choose add-ons as per your requirements.
Before purchasing your bike insurance policy, you must consider the various add-ons that can be beneficial for you. You must choose only those add-ons that will be most possibly required, as each add-on also adds to the premium cost. The most common add-ons that you must consider are zero depreciation cover, key loss cover, consumable cover, road side assistance cover, engine protection cover, tyre damage cover, and NCB.
Getting these covers is crucial as they can protect you against a huge financial dent.
- Go through the policy document carefully.
Before purchasing your bike insurance policy, whether it is comprehensive or third-party bike insurance cover, you must always go through the policy documents carefully. Compare different insurance policy offers extended by different companies. There are many online websites that will help you do an in-depth comparison of different insurance policies.
Once you have finalised the insurance policy, make sure to read the policy document carefully. Read through the fine print to know about all exclusions and other essential details related to them.
- Make a premium payment to complete the policy purchase.
Once you have gone through all these steps, you can finally purchase your bike insurance policy. You have to submit the requested documents and make the premium payment. You can do this either online or offline.
Whether with a third-party bike insurance purchase or going for a comprehensive policy, you need to make sure that the policy is renewed before its coverage term expires. Even though it is compulsory for third-party coverage, you must keep the vehicle covered at all times. This ensures that any liability is covered and that you do not have to face unnecessary financial strains.
