How to choose coverage for your two-wheeler insurance policy?

How to choose coverage for your two-wheeler insurance policy?

Rishi is a 26-year-old working professional. He travels to his workplace via public transport and usually gets stuck in traffic for hours which galls him. To get away from the traffic, he finally decided to purchase a two-wheeler. He expressed his desire to his father which made him elated. Rishi’s father congratulated him but also warned him that even being one of the most popular modes of transport, two-wheelers are more exposed to risks such as road accidents and other unprecedented mishaps. Such mishaps can be dangerous and can put a dent in his hard-earned years of savings.

He further added that every year, over 450,000 accidents occur in India, with 150,000 people being killed. Even a proficient two-wheeler driver will struggle with poorly executed traffic laws and roads riddled with bumps and potholes. Therefore, having a two-wheeler insurance policy is important which will assist him in covering the expenses in case of an unexpected incident such as a road accident, vehicle theft, or damage to third-party property.

Rishi understood and further researched online to learn more about two-wheeler insurance. He found that there are two types of insurance available but was confused as to which insurance he should purchase. So, let’s help Rishi and other potential buyers make an informed decision with this article. Read on!

Third-party two-wheeler insurance vs Comprehensive two-wheeler insurance

Third-party insurance is mandatory as per the Motor Vehicles Act 1988 which protects you against the financial burdens of a third party. However, it is also prudent to consider the cost of own damage in the event of an accident; thus, in addition to the mandatory third-party insurance, it is wise to purchase a comprehensive insurance plan that will cover both aspects under a single premium hassle-free. Hence, an ideal decision would be to purchase comprehensive insurance which protects you from unforeseen damages to your two-wheeler.

How to choose the right two-wheeler insurance?

When purchasing a two-wheeler, you examine numerous criteria such as appearance, mileage, cost, and so on. Similarly, you should select the most suitable insurance cover for your two-wheeler by considering several parameters. It is critical to choose your insurance policy based on features that will effectively help you to fulfill your requirements. Here are some helpful tips to help you choose an insurance policy that fits your budget and needs:

1. Know your coverage amount

Before you start your search for the ideal insurance for your vehicle, you should evaluate the options based on your needs and budget. Bike insurance is classified into two types based on coverage: third-party and comprehensive. Choose a plan that provides adequate coverage based on how you use your two-wheeler, your expenses, and any other current obligations.

2. Consider the IDV

The insured declared value (IDV) of your two-wheeler represents its current market worth. It is the max value that your insurance provider must pay in the event of theft or total loss of your two-wheeler. Depreciation lowers the IDV over time, reducing the premium amount as well. Therefore, IDV is an important factor since it impacts the insurance plan’s premium and compensation amount.

3. Check the cubic capacity of the bike to determine premium

When purchasing insurance, be aware of your bike’s cubic capacity because it determines the insurance rate that you will pay. If your two-wheeler has a large cubic capacity, your premium will be higher as well.

4. Look for add-ons

Look for riders to add to your two-wheeler insurance policy to make the coverage more inclusive. You will have to pay an additional fee for the riders. Zero depreciation cover, towing protection, and personal accident cover for pillion riders, and other popular riders are offered with two-wheeler insurance.

5. Choose reputed insurer

Always seek a reputable insurance company. Check the company’s claim settlement ratio to determine the effectiveness of the insurer’s claim procedure. Choosing reputable insurance ensures that claim processing is hassle-free.

6. Understand claim process

Several insurers have now implemented easy, quick, and smooth claim settlement processes via video and picture submissions. These policies are regarded as the finest since they provide rapid and easy claim payouts. Check the insurer’s claim turn-around-time (TAT), which indicates the average time it takes to settle a claim, and the claim settlement ratio (CSR), which indicates the maximum number of claims resolved by the insurer in proportion to all claim requests received by it in a fiscal year. Choose a plan with a lower TAT and a higher CSR.

7. Check for discounts

Check the various discount offers offered by different insurance providers and choose a policy that claims to deliver the best rate of discount, which can significantly reduce your premium. No claim bonus, voluntary deductible, and other prominent discounts are offered under various insurance policies.

8. Compare different insurers’ plans

Another critical step in purchasing insurance is comparing various plans in order to make an informed decision. You should compare bike insurance plans online by coverage, inclusions, exclusions, cost, and other important factors. Also, don’t forget to check online reviews provided by genuine customers who discuss their insurance provider experiences. If you are puzzled, it is a good idea to examine the reviews and grievances.

So, it is clear that purchasing a two-wheeler can help breeze through traffic but for its safety, you should have insurance in place. Also, you need to keep the following ideas in mind while buying two-wheeler insurance as it would be easier for you to pick the finest coverage for your two-wheeler vehicle.

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