Things To Consider Before Buying Bike Insurance

Buying a motorcycle, be it a scooter or sports bike is exciting. Two-wheelers are compact, letting you zip around the town while navigating the bumper traffic quickly than a four-wheeler or public transports. According to the Motor Vehicles Act, 1988, it is compulsory to buy bike insurance before driving on Indian roads. The insurance policy is either bought through an agent or online.

However, it is better to do your homework before investing in the insurance policy. Following are the points to consider before buying offline or online bike insurance:

Read up on different policies 

There are two types of two-wheeler insurance – comprehensive policy and third-party liability. The comprehensive plan offers all-around protection against damages caused to the motorcycle due to natural and human-made calamities. On the other hand, third-party insurance essentially provides coverage for damages caused to another party asset under a road accident.

While it is unnecessary to invest in a comprehensive policy, all bike owners should invest in a third-party plan as it is mandatory according to the Indian traffic laws.

Compare insurance companies 

Most of us make the mistake of buying the insurance plan suggested by the dealer or the loan provider. You might not know that the two-wheeler dealer gets a specific amount as commission and unaware of what the policy covers. It is better to do your homework, compare different insurance providers, and buy online bike insurance after verifying the terms and conditions of the plan. This way, you become aware of the nitty-gritties and need not pay additional commission.

Understand the relationship between premiums and coverages

The insurance premium you pay and the coverage you receive for it are related closely. You get hosts of additional benefits if you opt for a comprehensive plan instead of the third-party insurance policy. Hence, the premiums for the former are higher than the latter. But every insurance comes with different levels of coverage and additional terms and conditions. So, ensure you select the one that fits your needs.

While the comprehensive plan for two-wheelers is towards the expensive side, it is better to think from the long-term.

Inquire about Insured Declared Value 

When you invest in bike insurance, the policy provided generally reveals the maximum percentage of coverage you can expect, especially while making claims. The value determined depends on the motorcycle’s market value according to the selling price by the manufacturer. Further, the deal gets adjusted thereon according to the depreciating value of the essential parts of the two-wheeler like an engine.

Whether you buy insurance online or through an agent, make sure you buy one that offers the highest insured declared value for the motorcycle. This ensures you receive the maximum sum insured while making a claim.

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