5 Mistakes You Should NEVER Make While Buying New Bike Insurance Plan
In India, two-wheelers are one of the most preferred transport mediums due to the convenience they offer. They’re also much more affordable than cars, making bikes a commonly owned vehicle by many Indians. But did you know the law of the land mandates bike owners to secure their two-wheelers before taking them out on roads?
If you’ve purchased a brand new bike, you will have to get it insured before you can use it as a daily mode of transport; else, you’ll be heavily fined or penalised by the concerned authorities. To help bikers like you secure your two-wheelers under the right insurance, we’ve listed down the five most common mistakes that new bikers make while buying two-wheeler insurance, so you can avoid all of them.
Here is a top, curated list of the five mistakes you should NOT make while buying a new bike insurance plan.
Also Read - Buying Term Insurance Online? Here's Why It Is A Good Idea
- Choosing the Wrong Coverage
The most common mistake bikers make while buying two-wheeler insurance is picking a policy with insufficient coverage. For the uninitiated, there are two prime insurance policy types available for bikers. One is third-party insurance, and the second is comprehensive insurance. The former secures the policyholder against financial damages caused to third-party individuals and properties but does not cover any damages caused to the policyholder or biker.
The latter, or comprehensive bike insurance, offers a better coverage solution by covering both third-party and own damages. Needless to say, the third-party insurance comes with a lower premium than comprehensive but also offers insufficient coverage. If you prefer security more than reasonably priced premiums, you should go ahead with comprehensive two-wheeler insurance.
- Not Comparing the Available Options
Digitization has made it quite easier than ever for people to find, evaluate, and compare various insurance policies online. But still, some people make the mistake of not comparing the available options and heading with whatever policy they find first. If you have finally decided whether you want to proceed with comprehensive or third-party insurance, you should search for similar policies online, compare them against their coverage and premium, assess your needs, and make a final decision.
When you compare bike insurance online, your chance of finding the right insurance at the best price increases significantly. You can head to the websites of individual insurance providers to gather more information or look for online resources that have exhaustive comparison guides of various bike insurance published for reference.
Also Read - Pandemic Impact: Indians turn to life insurance to boost financial immunity
- Picking Cheaper Premiums Over Ideal Coverage
Premiums have always been the deciding factor when it comes to buying two-wheeler insurance, but it certainly isn’t the best metric to pick the right bike insurance. Policies that come at a cheaper premium cost often lack coverage. While it doesn’t matter much in the short run, the policyholder might face the heat when encountering an unfortunate event. They understand the value of better coverage during the claim settlement process.
Luckily, there are many cost-effective bike insurance that offer decent coverage and come at a reasonably well-priced premium. But they aren’t the cheapest in the market, for sure. You can take the help of an online premium calculator to check what premium you’ll be charged if you include or exclude specific coverage terms. It will give you a clear idea of how much you should be open to spending on bike insurance premiums. To be safer in both short and long terms, always pick better coverage over cheap premiums.
- Not Entering Correct Personal Information
A terrible mistake bike owners should avoid at all costs is entering incorrect personal information while buying bike insurance. Premiums are often calculated based on a range of factors, and the biker’s personal information is one of them. Altering these details even slightly can result in a change in the premium amount.
If the insurance company finds the incorrect personal details filled by you in the policy papers, you can be penalised in the form of high premiums. In severe cases, your application may also get rejected from the particular insurer. So always be careful while filing your personal information, like age, health conditions, etc., in the policy papers.
Also Read - Travel Is Changing: Here’s Why You Need An International Travel Insurance
- Not Reading the Inclusions & Exclusions of the Policy
Not all two-wheeler insurance policies have the same inclusions and exclusions. Assuming your shortlisted bike insurance offers certain benefits just because other insurance companies do so is a big mistake. Always visit the individual insurer’s website or read the policy papers to understand what is included and excluded in the policy. Check details regarding the coverage, co-payment, IDV, sum insured, etc.
Also, check under what conditions the policyholder is not eligible to file claims. If you’re not satisfied with the standard coverage being offered with the policy, you can also check what add-ons are available with the particular two-wheeler insurance to enhance the coverage. The clearer you are with the terms and conditions of the policy, the better it is.
Make the Best Bike Insurance Purchase from a Reliable Insurer
Buying bike insurance is a crucial investment that will pay in the long run. Hence it is essential to be diligent while buying one. You can find many resources online that highlight things to do, but very few share words of caution to prevent the biker from purchasing the wrong insurance. If you are considering buying the right two-wheeler insurance, make sure you don’t make any of the mistakes shared in the guide above. It will ensure you invest in the right insurance for your bike.
Also Read - 10 Most Expensive Bikes Owned By Indian Celebrities.
