Buying 2-Wheeler Insurance? Compare Plans Across 5 Vital Parameter

We spend so much time mulling over nitty-gritty's like cost, model, mileage, reviews, and other technicalities before buying a bike, but pay hardly any attention to its insurance, right? Most of us submit blindly to a pushy dealer's offering. A big no-no! Choosing a sound insurance policy should surely be a top priority. It protects your prized possession from theft, damage, natural disasters, and other unforeseen calamities. While there's no denying that an insurance cover is essential, finding the right product can get a little daunting. After all, there are more than a dozen insurance policies for 2-wheelers on the marketplace. The best way is to compare different products and their features before zeroing in on a plan that best serves your needs and expectations. Here are five things to keep in mind when making a comparison.

1. Decide on Type of Insurance Plan: There are basically two types of plans. The first is third-party insurance which is compulsory for all 2-wheelers plying on roads in India. It is typically offered by dealers and covers the loss or damage arising to the third party by the insured vehicle. The comprehensive insurance, on the other hand, provides more extensive coverage and more protection. It includes various risk factors like personal accidents, thefts, natural calamities, third party liabilities, riots and more. The latter is a tad expensive but a better option compared to the policy mandated by law.
2. Factor the Premium Costs Carefully: The insurance premium is the amount you pay in return for financial protection against any risk or damage caused to your vehicle. The policy premium is affected by many variables like make and model of the car, engine capacity, year of manufacture, RTO, deductibles, etc. You will notice that different insurance companies offer different quotes for the same package. It's crucial to scrutinise the vital details of the plans and finalise on the policy that provides maximum coverage at the most competitive premium rates.
3. Choose Add-Ons Based on Requirement: For a little extra premium, insurance companies offer additional coverage that extends beyond the existing basic policy. These add-ons may relate to protection in terms of wear and tear of the vehicle, co-passengers, accessories, roadside assistance, towing facilities etc. It’s imperative to compare the listed add-ons and pick only those that are essential and promise maximum benefits.
4. Consider Highest Insured Declared Value (IDV): IDV is the value for which your vehicle is insured and remains fixed throughout the policy term. It determines the amount that can be redeemed from the insurance company in the event of an unfortunate mishap, damage to vehicle or theft. The IDV plays a vital role in determining the premium. Since a high IDV translates into higher settlement claim, it makes sense to consider the highest IDV when comparing plans not more than the limit set by the Insurance Regulatory and Development Authority of India.
5. Look Out for Discounts: Various discounts are offered by insurance operators that can reduce the premium rates of the policy significantly. The discounts could be for no claim bonus, voluntary deductibles, modifications for the disabled, installation of safety devices etc. Compare multiple plans with respect to the discounts/rates and snag the policy that offers the best deal.
   

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Created on Nov 4th 2019 23:48. Viewed 459 times.

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