Getting a new bike is an exciting and joyous event. With more accessibility, however, comes more responsibility. As per the Motor Vehicles act of 1988, it is illegal to ride a bike without a basic bike insurance.
If you are entering the world of insurance for the first time, it could be confusing to understand where to start from and what to look at. However, to give this topic a little clarity and help you pick the right insurance suiting your needs, here are 5 steps to purchasing two-wheeler insurance online –
Step 1 – Research for a good insurance company
It is very important to get the right company to provide you with insurance for your bike as you are going to trust them with your hard-earned money in times of peril. A good insurance company has a higher claim settlement ratio and a lower claim processing time. This means that the company would take less time to pay the bill for your repairs and pay it whenever an appropriate need arises without denying you the money for any improper reasons. Companies like Iffco tokio have best claim settlement ration and take very little time to process your claim. It would also help to consider the number of years an insurance company has functioned as the quality and the swiftness of the service is directly proportional to the number of years a company has spent in the industry.
Step 2 – Choose between comprehensive and 3rd party insurance
Third-party insurances do not cover the fees for the damages caused to you, they only provide insurance for third party losses and damages. However, comprehensive insurances would cover both, your damages as well as the third party’s damages. Having said that, comprehensive insurances would naturally have higher premiums than third party insurances. Review the advantages of each type and pick the one that suits your needs.
Step 3 – Choose your add-ons
Add-ons, also known as riders, allow you to customise your policy to match your needs. A reputable insurance company offers you a plethora of additional benefits to choose from and these can be easily added to your comprehensive insurance by paying a slightly higher premium. However, the benefits are plenty, as insurance would not naturally cover everything during an accident. Consider opting for add-ons like engine protection and zero depreciation with your bike insurance. Bear in mind that add-ons can only be opted for if you buy comprehensive insurance.
Step 4 – Understand Insured Declared value (IDV)
IDV, Insured Declared Value, is nothing but the maximum amount of money an insurance company would cover for you in case of any casualties. Reputable insurance companies allow you to customize your IDV. Fixing a low IDV allows you to pay a lower premium but it also lessens the amount you would get to claim after an accident and hence as a general rule of thumb, it is better to set the value equal to your bike’s market value.
Step 5 – Check the premium amount
Once you have selected the insurance company, the insurance type, set an appropriate IDV and chosen the right add-ons, the last step is to see if the resulting premium amount fits your budget. There are plenty of payment plans that a good insurance company can offer you. Depending on your preferences you can conveniently choose between various payment methods and even pay for the renewal of two-wheeler insurance online.
We hope this article proves helpful when you set out to buy your first bike insurance. All the best!
