Buying two-wheeler insurance is amongst the most important aspects of vehicle ownership for protection against most likely financial liabilities, both to the rider and the vehicle. However, many bike owners commit some common mistakes while buying insurance that may result in wrong or insufficient coverage, increased premium, or denial of claims. Herein, we look at the top avoidable mistakes one makes while buying two-wheeler insurance to make sure you are making an informed and worthwhile decision.
1. Not Understanding the Types of Coverage
Most people commit this mistake by not knowing what type of coverage they ought to get. Generally, two-wheeler insurance is available in two forms:
Third-Party Liability Insurance: This is the most general form of cover, literally compelled by the operation of law. It covers your liability towards a third party in case of an accident, including injury to body, death, or damage to third-party property. This kind of cover does not cover damages to your own vehicle.
Comprehensive Insurance: It covers more comprehensive risk, hence third-party liability and damages to one’s own vehicle due to accidents, theft, or natural disasters/calamities caused by humans. Comprehensive insurance generally includes add-ons such as zero depreciation, engine protection, and even roadside assistance.
While third-party liability insurance may seem cheap, relying on it alone can leave you open to considerable out-of-pocket expenses in the event of any damage to your own vehicle. For each type of cover, one must weigh the pros and cons before making a decision.
2. Not Considering the Exclusions in the Policy
Exclusions are situations or damages that are not covered by the insurance policy. Not reading and knowing these exclusions can lead to some nasty surprises once a claim is filed. Following are some of the common exclusions one can find in two-wheeler insurance: Basic wear and tear of the vehicle Mechanical failure Electrical failure Riding under intoxication Usage of the vehicle for any other illegal purposes than that allowed by law Damage caused outside the geographical area as mentioned in the policy.
Read the exclusions of a bike insurance policy carefully to understand what is not included in the coverage while purchasing the policy.
3. Not Comparing Different Policies
The mistake many buyers make is buying an available insurance policy without comparing different options. The insurance market is highly competitive, with many providers operating in the market and offering all kinds of plans with varying features, premiums, and benefits. Failure to comparison shop can lead to losing an opportunity for better coverage at a lesser premium.
Use online platforms for policy comparisons, or get professional advice from a POSP agent. The POSP agent is licensed to sell insurance, and he or she will provide you with relevant advice as per your requirements. He undergoes training regarding particular studies and gets an ID of a POSP agent, meaning that he has earned knowledge about various insurance products.
4. Not Knowing the Add-Ons
Add-ons, commonly referred to as riders, can enhance your two-wheeler insurance cover, but the majority of policyholders rarely make use of it. The following are a few beneficial add-ons:
Zero Depreciation Cover: Covers 100% claim without considering depreciation on the vehicle’s parts
Engine Protection Cover: Reimburses costs incurred on repairing or replacing the engine since it is specifically excluded under a standard policy
Roadside Assistance: Helps during breakdowns caused by towing, fuel delivery, and on-the-spot repairs.
Adding appropriate extras can give additional security and peace of mind. However, the cost involved with the add-ons should be weighed against the benefit accruing from them.
5. Underestimating the Importance of IDV
IDV stands for Insured Declared Value and it is the maximum amount to be provided by the insurance company upon total loss or theft of the vehicle. It is calculated based on the listed selling price of the maker, less deprecation. Some buyers get lower IDVs aimed at saving premiums that result in compensations below requirements.
The exact IDV is always to be declared to secure the right compensation in case the loss of one’s bike or it gets damaged beyond repair.
6. Delaying Policy Renewal
Renew your two-wheeler insurance on time. People owning bikes procrastinate while renewing their bike insurance policy and, as a result, let the bike insurance policy lapse. Riding on the roads using an expired insurance policy is illegal and exposes you to financial uncertainty. Secondly, lapsed policies lead to the loss of accrued benefits, such as the NCB, which helps substantially reduce a big percentage of your premium.
In order to avoid this, put reminders for your policy’s date of expiration and renew it in time. Most of the insurers provide online renewal services today, which may help you to conveniently renew your policy from anywhere.
7. Choice of the Cheapest Policy
While this is pretty tempting, going with the cheapest available policy might be very costly in the long run. Cheaper policies come with a raft of limitations in coverage and add fewer benefits. Instead of focusing on the premium amount, consider the overall value brought in by the policy in coverage, add-ons, claim settlement ratio, and customer service.
8. Not Reviewing the Policy Annually
The reality is that these are bound to change with time, either because of the age of your bike, change in usage, or just new products in the market. Failure to do so yearly may lead to coverage no longer relevant for your needs. Take time annually to review your policy and adjust accordingly.
9. Failure to Disclose Correct Information
Honesty in buying two-wheeler insurance is the best policy. Giving false information about your bike, riding habits, or personal information may be considered voiding the claims or cancellation of the policy. Also, always provide correct information to the insurance company to avoid problems in raising a claim.
10. Losing Benefits with Online Purchase
Bike insurance purchased online has its advantages, like reduced premium rates, on-the-spot issuance of policy documents, and
It has the convenience of comparing different policies while sitting at your home. Still, many buyers would choose the offline mode of purchase which deprives them of all these privileges. You can get discounts and other promotional offers when you purchase bike insurance online that are usually not available offline.
Furthermore, online portals also provide calculators to calculate the premium for you, choose the best two-wheeler insurance cover, and even check on the status of your claim. The convenience a buyer gets coupled with cost savings makes online buying an effective option for any smart customer.
11. No Claim Bonus (NCB) – Not Availing It
The No Claim Bonus is the discount given by the insurers for each year for which no claim has been made. It can cut down your premium as high as 50% in some years. Yet, a number of policyholders just don’t remember to transfer their NCB when they shift to some other insurer or get their policy renewed.
Always check your NCB status while renewing or transferring a policy. Savings can be quite high, and their proper accounting of NCB will reduce insurance costs over a period of time.
12. Not Choosing Long-Term Policies
While annual renewals are the norm, many insurers these days provide long-term two-wheeler insurance policies that can last as many as three years. These policies will keep you away from the pain of yearly renewals and also safeguard you from premium increases. In addition, the long-term policy is commonly subjected to extra discounts.
If you plan to hold onto your bike for a number of years, then a long-term policy may offer more value and piece of mind.
13. Misunderstanding the Claim Process
Understanding the process of claims is very important because when you need to make a claim, it positions you to be wholly prepared for a seamless experience. Hardly would any policyholder know what documents are involved, the time limit within which to file the claim, or even what the whole process entails. In fact, it is often for want of information on this that causes claims to be delayed or rejected.
Know the claim process defined by your insurer. Keep all necessary documents handy, such as your policy details, driving license, and FIR in case of theft or major accidents. Note down the contact details of your insurer’s claim support team.
14. Not Considering the Network Garages
The insurers have tie-ups with network garages where you can avail of cashless repairs, meaning the insurer will settle the repair costs directly with the garage, reducing your out-of-pocket expenses. However, not all policyholders check the list of network garages before buying a policy.
Check that your insurer has a large network of garages, most importantly around your house and workplace. That way, when the time comes, your bike can be conveniently repaired without your involvement with huge repair bills.
15. Not Researching Properly
Finally, the biggest mistake made is buying the bike insurance policy before research. Whether it be purchasing bike insurance for the first time or renewing an existing policy, researching it is quite important. This will also include reading the policy documents, comparing various plans, and taking professional advice in case of any need.
In the digital era, information is just a click away on the internet, so take the pain to educate yourself about the nuances of two-wheeler insurance. The more informed you are, the better decisions you would make.
Role of Aapkapolicywala in Ensuring Best Two-Wheeler Insurance
Navigating the somewhat overwhelming world of two-wheeler insurance may be burdensome with the many options and essentials involved. Aapkapolicywala makes this process much easier by providing an online and easy-to-operate platform for comparing different insurance policies. Whether it is two-wheeler or car insurance online, Aapkapolicywala tries to ensure that you avoid the above-mentioned mistakes with a variety of policies and advising expertise in the selection of the best coverage. Be it finding the best two-wheeler insurance or guiding on the renewal of two-wheeler insurance, Aapkapolicywala provides customized solutions to your needs.
Conclusion
Buying two-wheeler insurance is much more than a formality to be followed as part of legal conformance; rather, it’s to protect one’s economic interests and travel hassle-free. By ensuring the above-mentioned mistakes are avoided, you shall have a policy providing the most excellent protection at a competitive price. Keep yourself informed, compare policies, and select the coverage that best fits your particular needs. Buying insurance for the first time or renewing an existing one, smart decisions will lead you to extract the best from your two-wheeler insurance policy.
