In India, every vehicle owner must purchase a third-party insurance policy to comply with the Motor Vehicles Act of 1988. Buying third-party bike insurance helps two-wheeler owners cover the damage their vehicle causes to someone else’s vehicle or property in an accident.

However, bike owners can also extend the coverage and safeguard their bikes by choosing the right insurance policy.

If you want tips on purchasing the best bike insurance policy, here’s more!

Types of Bike Insurance Policies in India

To understand which bike insurance is the best for you, it is necessary to learn about its types. Here are the three types of two-wheeler insurance one can get:

1.     Third-Party Bike Insurance Policy

As the name suggests, this bike insurance policy covers the losses and damages of the third-party vehicle or property caused during an accident. It does not cover the damage caused to your bike. If you want to stay compliant with the legal requirements, getting your car at least insured with a third-party policy is mandatory.

2.     Comprehensive Bike Insurance Policy

This policy is an all-in-one package covering the bike owners and third-party damages incurred in an accident. It also offers additional benefits that can be availed by purchasing add-ons with the comprehensive policy. So, you can extend your coverage by paying a little with your monthly insurance premium.

3.     Standalone Own Damage Plan

This policy only covers the bike owner’s losses and damages caused by accidents, fires, natural disasters, thefts, etc. If you have already purchased third-party insurance, you can buy your own damage or standalone bike insurance along with it to insure your bike and yourself.

Apart from knowing the types of insurance policies, one should also follow some crucial tips while selecting the best bike insurance policy. Read on to learn about them!

Things to Consider While Buying a Bike Insurance Policy

Here are some of the factors to look for while purchasing a bike insurance policy:

1.     Understanding the Coverage You Need

Before purchasing a bike insurance policy, one must assess the coverage they need based on their budget and need. As you already know, two-wheeler insurance policies come with both comprehensive and third-party coverage, and you can decide which one you need based on your liabilities, expenses, and usage.

2.     Decide the Premium Amount

 The monthly premium of a bike insurance policy plays a crucial role in determining the coverage and benefits offered by the plan. Some variables like the age, make, and model of the bike, riding experience of the insured, and geographical factors are considered while deciding the insurance premium.

One can use bike insurance premium calculators to calculate the premium and compare the premium amounts of different companies before buying a policy.

3.     Understand Insurance Declared Value (IDV)

IDV is the insured declared value or current market value of the two-wheeler. You can claim This maximum amount when the bike is lost or stolen. A new bike has a higher IDV; the vehicle’s value depreciates with age. This will cause the IDV to decrease and reduce the premium every year.

4.     Choose a Reputed Insurer

Another crucial thing to consider while purchasing an online bike insurance policy is finding a reliable provider. A reputed insurance company ensures hassle-free settlement at the time of a claim.

5.     Know the Claim Settlement Ratio

Checking the insurance company’s claim settlement ratio is also necessary before buying bike insurance. A company with a higher claim settlement ratio is considered reliable. The claim settlement ratio refers to the number of claims the company has settled against the total number of filed claims.

6.     Two-Wheeler Insurance Renewal

To ensure continuity of coverage, it is essential to renew the bike insurance policy before it expires. If your policy lapses, a vehicle inspection is usually required before renewal can be processed. Don’t wait until the last minute; keep your coverage active.

7.     Compare Bike Insurance Online

Comparing different insurance plans online is a smart move when making your choice. Evaluating coverage options, inclusions, exclusions, and costs helps ensure you make an informed decision that suits your needs and budget. Take advantage of online comparison tools to find the best value.

8.     Look for Add-ons to Extend your Insurance Cover

You can extend the benefits of your comprehensive bike insurance policy by checking the add-ons available with your insurer. These add-ons provide extensive protection for a small additional premium. Common riders include zero depreciation cover, towing assistance, and personal accident cover for the pillion rider, giving you greater peace of mind.

Why Should You Buy a Bike Insurance Policy?

Bike insurance is necessary because it provides coverage against the following circumstances:

• Natural and Man-made Disasters: This policy safeguards your bike from losses caused by events like floods, earthquakes, vandalism, and riots.
• Theft: Provides compensation if your bike is stolen, reducing financial loss.
• Personal Accident: Offers financial support in case of injury, disability, or death resulting from an accident.
• Traffic Penalties: Avoid fines for riding without insurance, which can be more expensive than the policy.
• Extensive Coverage with Add-ons: Customise your policy with add-ons like a return to invoice cover, zero depreciation, and breakdown assistance for enhanced protection.
• Third-Party Damage: If you are involved in an accident that damages another person or their property, your insurance covers these costs, avoiding disputes and legal complications.

Thus, a bike insurance policy is necessary to provide you with financial protection against the damages caused by your vehicle during unforeseen circumstances. While buying bike insurance, you can keep the factors mentioned above in mind to make the best selection that covers all your requirements.