Buying Bike Insurance Online vs Dealership: Which One Should You Choose?

What Is Bike Insurance and Why Is It Mandatory?

Before diving into the comparison, it's important to understand the basics.

Bike insurance is a policy document that offers financial protection against various unforeseen risks and damages caused to or by your two-wheeler. According to the Motor Vehicles Act, 1988, having at least a third-party bike insurance policy is mandatory to ride legally.

There are two main types of bike insurance policies offered by most of the insurers in India:

• Third-Party Bike Insurance: It covers damages to third-party property, vehicles, or persons caused by the insured two-wheeler.
• Comprehensive Bike Insurance: It covers third-party liabilities along with damages to your own bike due to accidents, fire, theft, natural disasters, man-made calamities, etc.

Now let’s explore the pros, cons, and key differences between buying two-wheeler insurance online vs from a dealership.

Online Bike Insurance vs Dealership: Quick Comparison

Bike Insurance Premium: Why Online Is More Affordable?

When you buy two-wheeler insurance from a dealership, the dealer often includes a policy from a pre-selected insurer. These policies may include hidden fees or inflated premiums, as the dealership earns a commission or margin.

In contrast, online platforms like Policybazaar.com offer the following benefits:

• Real-time premium comparisons
• Customizable quotes
• No hidden cost, which means lower costs

1. Customisation and Policy Features

   Buying two-wheeler insurance online lets you:

   • Choose between multiple insurers
   • Select your own IDV (Insured Declared Value)
   • Add relevant add-ons like zero depreciation cover, roadside assistance cover, engine protect cover, and NCB protection cover.

   Dealership policies are often one-size-fits-all. In many cases, the executive might not even explain what’s included or what is skipped.

2. Transparency and Policy Details

   Buying 2-wheeler insurance online gives you a user-friendly and transparent experience. You can:

   • View premium breakdowns
   • Compare features
   • Read user reviews
   • Download sample policy PDFs

   At dealerships, policy details are often verbally explained or skipped. This can lead to:

   • Confusion during the claim-related process
   • Missing important coverage
   • Overpaying for less

3. Time and Convenience

   Online bike insurance can be bought with a few clicks by entering your bike’s registration number and basic details. It lets you enjoy the following:

   • Buy policies anytime, anywhere, and even on weekends.
   • Get soft copies instantly in your email.
   • Set reminders for renewal.

   At dealerships, bike insurance is offered during vehicle delivery. While this feels convenient, it adds time to the delivery process and may pressure you into accepting what's offered without question.

4. Claim Experience and Support

   Regardless of where you purchase insurance, claims are settled by the insurer. But when you buy online:

   • You get direct access to the insurer’s support and claim tracking.
   • Portals and apps make it easy to raise claims digitally.

   Dealers typically do not assist with claims after delivery. If issues arise, you’ll have to coordinate directly with the insurer and may not even know whom to contact.

5. Renewal and NCB Benefits

   Online insurers send timely reminders via SMS, WhatsApp, and email to help you renew on time and retain your No Claim Bonus (NCB).

   • If you buy from a dealer and rely on them for renewals:
   • You may miss the due date
   • You could lose your NCB (which could be up to 50% of the premium)

   Buying two-wheeler insurance online also offers easy transfer of NCB, making it easier to carry forward your benefits even if you change insurers.

When Should You Choose Online Bike Insurance?

Choose two-wheeler insurance online if you:

• Want to save money on premiums
• Prefer comparing plans
• Need specific add-ons or coverage
• Want instant access and policy management via app or website

When Buying from a Dealership May Not Be Ideal?

Avoid dealership insurance if:

• You're unsure about what's included
• The dealer doesn't share insurer details upfront
• You're not being offered the option to customise your policy

Final Verdict: Online Insurance Is the Smarter Choice

With several digital platforms available on the internet, buying 2-wheeler insurance is more accessible, transparent, and affordable. Not only do you save money, but you also gain control over your coverage, avoid hidden charges, and enjoy a hassle-free claim and renewal process.

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