5 Common Mistakes to Avoid While Buying Two Wheeler Insurance Policy
There are several terminologies in two-wheeler insurance, which are not well-known to a layman. These terminologies make the policy wording difficult to understand and confuse the user at the same time.
Read further to get familiar with 5 common mistakes that you should avoid while choosing the best bike insurance policy-
1. Lack of Research
Usually, people who are buying two-wheeler insurance policies for the first time fail to do research and explore various options thoroughly. If you also looking for a bike insurance plan, it is advised to do proper research. You must know what type of coverage you need, then move to the inclusions and exclusions of the policy.
Always make sure you 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.
In addition, 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 premium calculator to get an idea about the premium amount for your bike model.
2. Never Go for a Cheap Policy
Price is definitely a point of concern, especially for the policy that offers multiple benefits and coverage. Usually, people search for a 'cheap bike insurance policy' and this is not the right way.
Instead, always look for low-priced or affordable bike insurance, but do not make it your primary concern and the deciding factor. You may think that the policy with the lowest premium will be the best option for you, but these policies do not offer coverage against huge losses or damages to your insured vehicle.
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 choose your IDV which is often ignored while buying an insurance plan.
3. Making Errors While Entering Your Personal 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. Therefore, you must cross-check all the personal information with your ID-proof while filling it 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 No Claim Bonus
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. The No-claim bonus 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.
Many 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 to 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. Before making any decision, do read the underwritten terms and conditions thoroughly.
To find the best bike insurance policy for your two-wheeler, you should compare different policies online, based on the coverage, benefits, and premium amounts associated with them. Also, avoid these common mistakes which are discussed in this article to get the best plan at the most affordable price range.
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis