Looking to buy a bicycle insurance policy? Here’s how you should choose the best insurance for your bike
Two-wheelers are commonplace on Indian roads. This can be attributed to the various advantages they offer, including the ability to glide through heavy traffic and narrow lanes. But along with the pros, there are also some cons. No matter how skilled a biker you are, the chances of encountering a bicycle accident cannot be entirely overlooked, especially when riding on busy streets. This is where a bicycle insurance policy enters the scene.
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The Indian Motors Act has made it mandatory for two-wheeler owners to secure their vehicles under insurance before taking them on Indian roads. Bicycle insurance covers the cyclist against financial liability resulting from road accidents. If you have bought a new bicycle, you should start looking for a reliable bicycle insurance policy at the earliest.
To help you make the whole process easier, we have listed specific parameters that you can consider to find the best policy among the others. So let’s take a quick look at the shared points below.
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- Know the policy coverage
Before researching bicycle insurance policies, make sure you have identified your needs. There are mainly two types of bike insurance policies available, and you can choose one according to your needs. If you want third party liability coverage, third party bike insurance will suffice. It will cover you against financial liability to any third party person(s) and property(ies) involved in the accident. But this will not cover the own damages.
If you want full coverage at a decent premium, you should look for comprehensive insurance. The all-risk insurance covers own damage and damage to third parties, thus preventing you from bearing a heavy financial burden in the event of an accident. Now that you know what each type of insurance offers, choose accordingly.
- Take a look at the IDV
Insured Declared Value (IDV) is one of the many insurance-related jargons that people new to insurance don’t clearly understand. It is nothing but the current market value of your vehicle. Insurance companies decide the IDV of a vehicle based on many factors, such as the age of the vehicle, its brand, its purchase price, its condition, etc. You should always look for insurers willing to offer a higher IDV for your bike. Because the higher the IDV, the higher the claim value will be if your bike is stolen or damaged beyond repair. But if you go for a higher IDV, it will lead to higher premiums and vice versa.
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- Select the best premium rate
Although the insurance company determines the premium rate, you can compare the different premiums charged before making a decision. One of the best parts of buying bike insurance online is having the ability to compare other similar policies before investing in one.
Once you’ve decided between liability insurance and comprehensive insurance, you can research similar policies offered by different insurers, compare their premiums to coverage, and then make an informed decision.
- Know the add-ons
Add-ons, also known as endorsements, can be defined as additional coverage. No matter what type of bike insurance you buy, there will always be an improvement in coverage. This coverage upgrade is done by purchasing add-ons. If you feel that the standard coverage offered by a particular policy is not sufficient, you can upgrade the coverage by purchasing relevant add-ons.
The range of options offered varies from insurer to insurer, so always check what options are available to you. Typically, the best insurers offer add-ons such as zero depreciation, consumables coverage, roadside assistance, on-bill return, engine protection, and more. Since each add-on will increase the value of your bounty, only add the ones you really need.
- Look for discounts or offers
Finding discounts or offers should never be overlooked as this can significantly reduce the premium amount. Check if the insurer you have pre-selected offers certain offers in collaboration with certain banks or if a coupon is available online. A little ingenious research online can go a long way towards lowering your premium payment.
- Analyze the complaint resolution process
One of the main reasons to insure a two-wheeler is to get quick reimbursement after an accident. As a policyholder, you don’t want to get bogged down in a tedious claims process. You should always settle with an insurer known for settling claims quickly with minimal paperwork.
If you’re buying bike insurance for the first time, check the insurance companies’ claims payout ratio over the past five years. The higher the claims settlement percentage or ratio, the better. You can also ask people from online insurance companies to share their unbiased opinions about the claims processes of different insurers.
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- Premium payable
The premium plays the determining role for many people when purchasing bicycle insurance. If you are also one of them, this point is crucial. To ensure you get the best insurance deal, always compare the premium charged by different insurance companies and what coverage is provided at that premium. You can use a reliable online service bike insurance premium calculator to get an accurate idea of the premium charged.
Using a premium calculator is simple. Just provide accurate details as requested on the screen and it will display an almost accurate premium figure within seconds. You can use it during the strategy comparison step to get the best results.
- The reputation of the insurance company
One crucial thing that you should never ignore is the reputation of an insurance company in the Indian market. When searching for two-wheeler policies, you may come across different insurance companies. But not all are worth your time. Some have a bad reputation for providing poor customer service and failing to deliver on promised terms. To make sure you don’t end up with such an insurance company, always check what existing policyholders have to say about the insurer. You can gather insights by joining online communities built on Facebook, Reddit, etc., around the Indian insurance landscape.
- Purchase and renewal
As a policy buyer, you should pay more attention to policies that come with minimal documentation hassles. Policies that are easier to buy and renew take a lot of stress off the policy buyer/holder. A little online research on the shortlisted insurance company can give you all the answers you need to make an informed decision.
- Moderator ticket and voluntary deductibles
For the uninitiated, an insured must pay a certain percentage of the claim amount during the claim settlement process, and the insurer pays the rest. The amount paid by the insured is called co-payment or voluntary deductible. This is usually a small percentage of the claim amount, but can be high for some insurance companies. If you don’t want to pay a large amount out of pocket when settling the claim, always look for policies with a low co-pay clause. Policies with a higher co-pay clause or voluntary deductibles usually have a lower premium and vice versa.
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Invest in the best two-wheeler insurance
Buying the best two-wheeler insurance is crucial for bike owners, as it can make a big difference when a cyclist is involved in a road accident. Since the market is full of various bike insurance products offered by different insurers, it can be difficult for many to identify the best option. So, to make your decision-making easier and easier, we have listed all the parameters you need to check before taking out two-wheeler insurance.
Checking a policy against all the points mentioned above can be tricky, but it will be well worth the time invested. Now that you have a checklist ready, start looking for a reliable bike insurance policy at the earliest.