What is Bike Insurance?
Bike insurance is a deal between the bike owner and the insurance company. The insurance company will pay for any damage to the bike that happens because of an accident, theft, or crash.
If you have bike insurance, protecting your finances and legal responsibilities is vital in case of an accident, natural disaster (like a fire or a landslide), or human-made event (like theft, riots, vandalism, etc.).
Insuring bikes of all types, like motorbikes, scooters, mopeds, and even electric bikes, is what many people do.
Benefits of Bike Insurance
These are the key benefits of two-wheelers Insurance:
Security in All Directions
You, your bike, and any other people or property you may come into contact with are all protected financially and legally by a comprehensive bike insurance policy. Your insurance will pay for your bike if it is stolen, damaged in a strike, or destroyed in a war. Although having third-party insurance is mandated, insurance covering damages to your bike is optional.
Protection for the Future
Several firms now offer multi-year coverage that will protect your bike for up to three years. A long-term policy means that your premium will remain unchanged for the next three years, and you won’t have to worry about renewing your coverage yearly.
Optional long-term bike insurance coverage can come with premium discounts from several insurance providers.
Rewards for Not Filing a Claim
Insurance providers often offer a discount known as a “no-claim bonus” to policyholders who have not filed any claims during the policy’s initial years.
Payment in Kind
This is a significant perk of having bike insurance. In the event that an insured bike owner sustains damage to their bike as the result of an accident or other covered event, filing a cashless claim is a simple process. They must bring their wrecked car to any network garages, and the garage owner and insurance company will work out the payment details directly.
Insurance in Case of Accident
When a person purchases a bike insurance policy, one of the benefits is protection against personal accidents. In an accident, the biker is under the protection against financial hardship in the event of injury or death. Personal accident coverage is essential, especially when driving, and you can easily acquire this type of coverage while you purchase your motorcycle insurance.
Types of Bike Insurance Policy
Bike Insurance Policies are classified based on their coverage. These are the following:
Third-Party Bicycle Insurance
The policy for third-party bike insurance is also referred to as third-party liability. It is a mandatory policy, and its premiums are lower than those of other types of coverage. The third-party bicycle insurance policy protects against third-party liabilities, including bodily injury/death and property damage.
Standalone or Own Damage Bike Insurance Coverage
Own Damage (OD) bike insurance policies, also known as Standalone Own Damage bike insurance plans, cover only damages caused by the policyholder. It covers death, bodily injuries, and bike damage in the event of an accident. Thus, it does not cover liabilities incurred by assorted third parties. If one purchases separate damage coverage, they must also purchase a policy covering third parties.
Comprehensive Motorcycle Insurance Coverage
Bicycle owners choose a comprehensive bike or two-wheeler policy so that they are not a requirement to purchase distinct insurance policies for third-party and own damage. It incorporates both coverages and is, therefore, a comprehensive policy for bike insurance.
Choosing the Right Insurance Policy
Consider the below-mentioned factors when selecting a bike insurance policy for your vehicle.
- Determine your coverage needs and choose a policy that suits your budget.
- Determine the appropriate policy based on your bike’s volume.
- Learn about each available add-on or rider, then expand your policy’s coverage.
- Know your motorcycle’s current insured declared value (IDV). IDV is the utmost amount of coverage that is fixed at the time of policy purchase.
The insurance company will pay this quantity in case your bike is stolen or completely destroyed.
- Select a reputable insurer after conducting online research on insurance companies.
- You can compare premium estimates online and read the policy’s terms and conditions at your leisure.
- Always contemplate reading online customer reviews and feedback.
How to Calculate Bike Insurance Premium
A premium estimate online tool makes determining how much your bike insurance will cost easy.
Policyholders can get instant insurance quotes from this calculator by entering information about their bike, where it is registered when they bought it, the location of the regional transport office (RTO), and the type of policy they have.
Before getting bike insurance, you should always figure out the premium. This will give you a good idea of how much different insurers charge, which will help you make the right choice.
But, the information needed to determine the price for a new and used bike is very different. Let’s find out what information is needed for new and used bikes.
Information Needed to Figure Out the Premium for a New Bike
- What company made it, and when
- Type of bike
- A type of bike
- Registered Address
Information Needed to Figure Out the Premium for a Used Bike:
- What kind of bike did you buy, and when did you buy it?
- Type of fuel.
- Details of the current policy
- The state and city as registered
- More about NCB.
- History or specifics of claim papers.
Factors that Affect Your Bike Insurance Premium?
Your two-wheeler insurance premium can be affected by the following:
Evaluation of Risk Based on Driving History
Not many people know, but your age, gender, driving record and driving experience can also affect the insurance premium. In such situations, companies calculate the associated risk factor and charge the premium proportionately. For instance, a youthful driver (in their early 20s) with one year of experience will pay a higher premium than a middle-aged, experienced motorcycle driver.
Insurance Policy Type
Every insurance company offers two varieties of two-wheeler insurance policies. Third-party coverage is the absolute minimum policy requirement and covers only damage to third parties.
The comprehensive coverage policy protects against theft, natural and manufactured disasters, catastrophes, and third-party damage. In light of the benefits it provides, the premium for comprehensive coverage will be greater than that for third-party coverage.
Extension Covers
The number of add-ons will increase the premium. Coverage can expand with the assistance of add-ons; however, the greater the number of add-ons, the greater the premium. Therefore, only select the coverings you deem necessary.
Condition and Type of Two-wheeled Vehicle
Various bikes have various specifications, and consequently, their insurance costs vary. The cubic capacity of a motorcycle’s engine is the factor that determines its insurance premium.
The insurance premium will increase proportionally to the volume. Additionally, the premium price is affected by the age of the vehicle, the model and class of the motorcycle, the registration location, the fuel type, and the number of miles driven.
Modifications Made to Bicycle
Numerous individuals enjoy adding bicycle accouterments to enhance its aesthetics and functionality. However, the standard insurance policy typically does not cover these modifications so you may need additional coverage. However, applying these modifications to your insurance policy may result in a higher premium.
The Market Value of the Bike
The current price or market value of the motorcycle also influences the premium. The bike’s market value is determined by its brand and functionality. The premium for an older vehicle is determined based on the vehicle’s condition and resale value.
Conclusion
When people buy bike insurance, they can ride with peace of mind, knowing that their finances and safety are care for. It’s essential to carefully pick the coverage that fits your wants and budget because it can make a big difference when something unexpected happens. In the end, two wheeler insurance gives riders peace of mind and safety on the open road to enjoy their hobby without worrying about their finances.
