Bike insurance saves you from financial losses in case of damage to your bike or if a third party makes claims after suffering damage due to your bike. There are a plethora of options you can choose from to insure your bike. However, there are some points that you must keep in mind while hunting for the best bike insurance. In this blog, we will cover how to find the best new bike insurance.
Things to Check for Selecting Best New Bike Insurance
There are several things to consider while buying a new bike insurance. Here are some factors you must check to buy the best new bike insurance:
● Check Your Coverage Needs
You must be clear about your coverage needs to buy the best insurance. An insurance plan comes with a set of inclusions and exclusions. You must buy an insurance plan which best meets your needs.
● Estimating Insured Declared Value (IDV)
The IDV indicates the current market value of your bike. The greater the IDV, the greater the premium for an insurance policy. To calculate the IDV, you have to subtract the depreciation of the bike from its ex-showroom price. Tallying the IDV with the premium will help you decide if the premium amount is fair for you.
● Reputation of the Insurer
It is important to check the reputation of the insurer and buy insurance only from an established company. To judge the reputation, you can also check the claim settlement ratio (CSR). The CSR shows the ratio of claims settled to the number of claims received. A higher CSR is a green flag as it indicates higher efficiency in settling claims.
● Engine Capacity
A higher cubic capacity of the engine leads to a higher premium and vice-versa. So you must check the capacity of the engine to estimate the premium amount.
● Selecting Right Add-Ons
You can buy add-ons to enhance the coverage of your insurance policy. Once you are clear about your coverage priorities, you can decide which add-ons to choose.
● Compare Insurance Plans Online
You can easily compare the insurance plans offered by different companies online. On comparing the coverage provided and premiums charged by different companies, you can decide which insurance plan best meets your needs.
● Reading Online Reviews
Reading online reviews written by customers of an insurance plan will give you an insight into how good an insurance policy is. You can understand the advantages of the insurance plan and clear any doubts you have by reading the online reviews.
● Network Garage
Insurers have agreements with garages across the country to provide cashless facilities. You can check the network garage of an insurer before deciding to buy insurance from it.
Why Do You Need Bike Insurance?
Here are some reasons why you must buy bike insurance:
● Fulfilling Legal Requirement
As per the Motor Vehicle Act of 1988, a bike owner must have bike insurance with third-party coverage. So, you need to buy bike insurance to comply with the law and not face any penalties.
● Financial Security
Repairing your bike or settling claims of third parties can require significant expenses. With bike insurance, you can be financially safe even if it is involved in an accident or ends up damaging another person’s property. Bike insurance can also cover damages suffered by a driver.
● Protection from Natural Disasters
Bike insurance can also protect you from natural disasters such as earthquakes, landslides, and floods. In a country where several regions are prone to natural disasters, such protections can be very helpful.
● Theft Coverage
It can be a very expensive affair if your bike gets stolen. But bike insurance can protect you by covering the theft of your bike.
Which Kind of Bike Insurance is Available in India?
In India, these 3 types of bike insurance are available:
1. Third-Party Insurance
It is a type of insurance which covers damage to a third party, including his or her vehicle and property. It does not cover a bike owner. Third-party insurance coverage is mandatory for all bike owners in India.
2. Comprehensive Insurance
Comprehensive insurance is an all-around package in the sense that it covers damage to a bike owner as well as damages suffered by a third party. The premium for comprehensive insurance is higher than for third-party insurance.
3. Standalone Own Damage
It is a type of insurance which covers damage to a policyholder’s bike. It can cover damages due to disasters, theft, or natural calamities.
Bottom Line
Overall, you can find the best new bike insurance policies on platforms like ACKO General Insurance. You can compare the premium, tenure, and coverage of different insurance plans to decide which insurance plan best meets your needs. Being clear about your priorities, requirements, and budget will help you make the right decision.
