If you are the owner of a motor-bike or scooter or planning to buy one, know that it is mandatory by law to have bike insurance on your vehicle to protect yourself against any financial loss that may arise due to damages to the bike/scooter as a result of accident, theft, etc. However, while scouting for the right insurance for your bike it is important to compare bike insurance offerings by various companies. This can help you save a good amount of money you otherwise may need to shell out for it. This article aims to protect a buyer’s interest by highlighting the common mistakes people make when choosing your two-wheeler insurance.
Here are a few silly mistakes that you can avoid:
1. Don’t let your bike insurance expire:
It is not prudent to let your bike insurance expire. Rather it is advisable to begin the process of renewing the insurance a couple of weeks before the expiry date to ensure you choose the best insurance cover for your vehicle that has the best of features and is easy on your pocket as well. Remember you lose on your no claim bonus if your policy has expired more than 90 days ago! So beware.
2. Not compare bike insurance online:
Insurance companies today encourage customers to renew their two-wheeler insurance online as that proves to be a cost-saving and time-saving approach for all concerned. However, you must ensure you research and compare 4 to 5 two-wheeler insurance offerings, with respect to the premium and features in the policies just as you compare bike online before taking the final call on your purchase. This is likely to help you find a company that offers you a policy that suits your needs in terms of the best of features and a modest price as well.
3. Look for cheaper policy options:
This is a common mistake people make. While price is definitely a consideration for everyone, it must not be the sole consideration while purchasing bike insurance online. When you first decide to buy a bike, you would compare insurance online to research for the best features vis-a-vis price. Similarly, the various features and coverage are what makes your bike insurance policy the best fit for your needs. Please note –
The lowest premium policy may look attractive to the pocket, but might fail to offset heavy losses; thus claims in the face of serious damage to your motorbike/ scooter.
Have you checked the insurance declared value (IDV) offered on your bike? IDV is the maximum sum assured that you will get in the face of total damage/loss to your bike or in case of theft of the vehicle. Naturally higher IDV would come with a higher premium and vice-versa in many cases.
4. Unaware of no-claim bonus (NCB):
When there is no claim from your two-wheeler policy in a policy year, then your policy is entitled to a no-claim bonus. This is a kind of reward the insurer gives on the policy through which your policy is entitled to a discount on the renewal premium to be paid for the following year. Even if you transfer your policy and buy a new one from a different company, you will still be entitled to the NCB per law. Hence ensure you ask the insurer about it, to ascertain you get the deserving discount on the premium. Know that IDV too can be transferred to the new insurer.
5. Incorrect information in the policy application form:
Correctly filling up the application form for your two-wheeler policy is the most important task. However, most of the people get their intermediary to fill it up for them and do not even check the details before signing the form. Please understand any error in your name, registration number of the two-wheeler, contact details, last company policy details, nominee details, etc. can cause you immense harassment in the face of a claim. Thus it is always advised that you take five minutes time to fill in all the required details correctly in the application form to avoid any hassle later.
So what are you waiting for? Go choose the best two-wheeler insurance for yourself!
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