7 Common Mistakes to Avoid in Choosing a Bike Insurance

What Mistakes Should You Avoid While Buying a Two Wheeler Insurance Policy?

The primary cause for making mistakes while buying a two-wheeler insurance is the unawareness regarding its terms, conditions, inclusions, exclusions, etc. You can read further to understand the common mistakes that you should avoid while choosing the bike insurance policy:

1. Lack of Research

   To make a well versed decision, it is important for you to thoroughly compare and buy a bike insurance policy. Not doing enough research leads to making a wrong decision and choosing an incorrect policy. You must know what type of coverage you need, then move to the inclusions and exclusions of the policy and then finally purchase a two wheeler insurance. It is always beneficial to do a comparative study of the benefits and premiums of different two-wheeler insurance policies available in the market. This may help you to find similar benefits at a much more affordable premium rate. You can also check the customer review about the policy and the company's reputation, which will help you to buy the best policy across the market.

   
   Pro Tip- For getting better insight, you can visit the official website of Policybazaar Insurance Brokers Private Limited. Here you can compare various bike insurance plans offered by different insurers. Also, you can use a free online tool like a bike insurance calculator to get an idea about the premium amount for your bike model.

2. Never Go for a Cheap Policy

   Choosing an affordable policy as per your budget is one thing, but choosing the cheapest policy without understanding the coverages, inclusions, and exclusions is not ideal. People often search and buy a 'cheap bike insurance policy', which proves to be a mistake during the claim settlement process as it does not provide enough coverage. Hence, you must always choose the policy that offers multiple benefits and coverage at the best price.

   
   Pro Tip- Insurers offer different types of bike insurance such as Third Party (TP), Own Damage (OD), and comprehensive bike insurance policy. Even though the TP bike insurance is the most affordable option, it does not cover damages caused to your own bike. Hence, you must choose that policy which provides overall coverage, which means a comprehensive bike insurance policy will be an ideal match. It provides protection against mandated third-party liabilities and own damages as well.

3. Entering Incorrect Information

   Another significant error that might affect your policy benefit is entering the wrong personal details or misspelling. All the claims filed under these circumstances are subjected to legal complications and would also get rejected. Therefore, you must cross-check all the personal information with your ID-proof while filling out the forms.

   Pro Tip- It is always a decent practice to choose a nominee. The nominee can be your family member who can claim the benefits of your policy after you. Therefore, do not forget to choose your nominee while entering your personal details.

4. Not Claiming the NCB

   In case you do not make any claims during the policy term, you are eligible to receive a No-Claim Bonus (NCB) while buying a new policy or renewing the existing one. It is a discount given to the policyholder on the own-damage premium payable for the next year. So, keep this in mind while renewing your two-wheeler insurance.
   
   

   Pro Tip- Apart from NCB, there is another term called a deductible in an insurance policy. A bike insurance deductible refers to a portion of the claim amount that you have to pay from your own pocket during the claim settlement. Individuals choose smaller deductibles while buying a bike insurance policy online, as they believe that the small deductible amounts are more beneficial. However, the reality is that opting for the higher voluntary deductible results in lower insurance premiums.

5. Not Reading the Terms and Conditions of the Policy

   This is one of the most common mistakes you might make while buying two-wheeler insurance policies. Make sure you read the policy wording in detail and do not ignore the exclusions. It may be that the most important type of coverage or benefit you seek falls under the exclusion list of the policy.

   Pro Tip- Before making any decision, do read the underwritten terms and conditions thoroughly.

6. Not Transferring the Policy When Buying Second Hand Vehicle

   If you are buying a second hand bike, it is essential to get not only the ownership transferred but also the bike insurance policy must be transferred to the new owner. If you do not get the insurance transferred, you are not eligible to file any claims, and you are also riding a two wheeler without an insurance policy is a punishable offense.

   Pro Tip- It is mandatory to get the bike insurance transferred within a specific deadline. If the new owner is from the same state then you must get the insurance transferred within 14 days, whereas you will have 45 days if the owner is from a different state.

7. Choosing the Incorrect IDV

   The Insured Declared Value (IDV) is a crucial aspect while buying a bike insurance as it directly impacts your premium. Individuals often set a low IDV to reduce their premium which can lead to a reduced claim amount during settlements. Hence, you must always set an IDV closer to the current market value of your bike after considering the depreciation.

   Pro Tip- Your bike insurance premium highly depends upon the Insured Declared Value (IDV), so choose this wisely. IDV refers to the maximum payout amount your insurance company will provide in case of total loss or theft of the insured bike. While selecting the bike insurance plan, you can easily calculate your IDV to get maximum coverage in case your bike is stolen or totally damaged.