Factors to Consider while Purchasing Bike Insurance for your New Two-Wheeler
If you have just bought a new two-wheeler, the next step is getting bike insurance. But with so many options available in the market, it can be difficult to decide which policy is right for you. This blog post will discuss some factors you need to consider while purchasing bike insurance.
We will also look at some of the benefits of having a policy and how it can protect you in case of an accident. So read on to learn more about bike insurance and determine which policy is best for you!
Let’s take a look at these factors.
1. Type of Policy
The first factor to consider is the type of policy you need. There are two main types of bike insurance policies – comprehensive and third party.
Comprehensive insurance covers you for damage to your own bike as well as third-party damage and may also include extras like roadside assistance. Third-party insurance is the minimum legal requirement and will cover you for damage caused to other people or property.
2. Insured Declared Value (IDV)
The IDV is the current market value of your bike. It’s calculated after deducting the depreciation from the ex-showroom price of your bike. Simply put, it’s the maximum amount an insurer will pay you in case your bike gets stolen or damaged beyond repair. You can choose to insure your bike for its IDV. However, we recommend you opt for slightly higher coverage, so you’re not underinsured.
3. Insurance Premium
The insurance premium is the amount you must pay to the insurance company for your two wheeler insurance policy. It is important to remember that the premium is not fixed and can vary from insurer to insurer. The premium also depends on various factors such as your bike’s make and model, age, riding experience, etc.
You can use the premium calculator on the insurer’s website to estimate the premium. You can also compare the premiums of different insurers before zeroing in on one.
4. Claim Settlement Ratio
The claim settlement ratio is the percentage of claims that an insurer has settled during the financial year. A high claim settlement ratio indicates that the insurer is settling more claims. Thus, it’s financially stable. You must check the insurer’s claim settlement ratio before buying a policy.
5. Digital Purchase
With the rise of the Internet, you can also purchase bike insurance online. All you need to do is log on to the website of your desired insurer, fill in a few basic details about yourself and your bike, pay the premium online, and voila! You will have purchased a bike insurance policy without even stepping out of your house.
While this is a very convenient option, you must remember to do your research about the insurer before purchasing the policy. Make sure that the insurer is reliable and has a good track record.
The Bottom Line
Purchasing bike insurance is an essential step in protecting your investment. When considering what type and how much coverage to buy, be sure to take into account the factors discussed above. By doing so, you can be confident that you are getting the best possible protection for your needs.