Every bike owner needs to purchase bike insurance. This insurance can provide financial protection to the policyholder. It can offer cover against various expenses arising due to accidents, theft, etc.
Primarily, there are two types of two wheeler insurance–
- Third-Party Bike Insurance
- Comprehensive Bike Insurance
Third-Party Bike Insurance
Third-party bike insurance provides cover against third-party liabilities. For instance, in case the policyholder’s vehicle causes damages to a third-party property in an accident, then the insurer can pay to cover the expenses to repair the damages. Furthermore, this insurance can cover expenses arising due to injuries, disability, or death of the third party.
Comprehensive Bike Insurance
Comprehensive bike insurance provides enhanced financial protection as it covers third-party liabilities as well as own damages.
Here are the benefits of comprehensive two wheeler insurance–
- Third-Party Liabilities
Any third-party liabilities arising due to an accident with the insured person’s vehicle are covered in comprehensive insurance.
- Own Damage
Damages caused to the insured person’s vehicle in an accident are also covered in this plan.
- Theft
In case the insured person’s bike is stolen, the insurer can provide cover against the cost of the loss of the vehicle.
- Natural and Manmade Calamities
Expenses arising due to natural and manmade calamities like earthquakes, floods, riots, etc. are also covered in comprehensive insurance.
Long-Term Comprehensive Bike Insurance
In order to make this insurance more beneficial, you should consider purchasing long-term comprehensive two wheeler insurance. Generally, long-term comprehensive insurance has a tenure of 3 years. But before purchasing this insurance, you must consider a few things-
- Length of Ownership
As most long-term comprehensive insurance plans have a tenure of 3 years, it is recommended to buy this insurance if you want to keep the bike for the long term. Don’t purchase this policy if you plan to sell the bike within 3 years.
- Insurance Company’s Reputation
Make sure you opt for a reputable insurance company. Check the claim settlement ratio. Go for an insurance company with a high claim settlement ratio. Also, read the customer reviews of insurance providers. Compare different bike insurance online to look for the best general insurance company.
- Add-Ons
Add-ons are additional benefits that can be purchased by paying extra premiums. Add-ons can enhance the financial security of a policy. Some of the most popular add-ons are zero depreciation cover, engine protection cover, and return to invoice. You can check the add-ons when purchasing bike insurance online.
- Increase in Premiums
It is important to renew insurance every year. The premium cost to renew insurance can increase every year. However, if you buy long-term comprehensive insurance, then you can pay the same premium amount. Thus, long-term comprehensive insurance can be a cost-effective option.
Why Long-Term Bike Insurance is a Great Option
Once you purchase long-term two-wheeler insurance, you don’t have to collect documents every year to renew the policy. Furthermore, as the premiums of regular bike insurance policies might increase every year, long-term comprehensive bike insurance’s premiums don’t change during the policy’s term. Thus, you should consider purchasing long-term comprehensive bike insurance if you want enhanced financial protection that fits your budget.
