Buying insurance is much more difficult than selecting a vehicle of your choice. To get started when you are buying a vehicle you at least know what you are looking for. But all these boring policy papers, they are rather difficult to comprehend and one mistake can make you end up selecting a bad policy that doesn’t even pay off the money you spend on the annual premiums.

So, (I) it is not at all about selecting the one policy that has the lowest premium, (II) an expensive policy is not an indicator of a good policy either.

In a hurry to buy a new policy or on the expiry of the previous one, many two-wheeler owners, end up making bad (should be read as worst) purchase decisions ever. Ideally, the goal is to buy two-wheeler insurance to get maximum value for every penny you are spending on the annual premium. There is a whole breed of insurers available out there, and they have an array of policies to satiate your needs. All you need to do is find the one policy that will insure your vehicle to its maximum value.

What does the law say about it?

Well, the law doesn’t entail you to buy insurance from a particular insurer. But it surely enforces you to get an insurance plan. It has been made mandatory by the Indian Government to get your two-wheelers insured, whether you are buying a new vehicle or using an old one. This makes it important now than ever before that you get a two-wheeler insurance policy for your new and old vehicles.

Buying a vehicle comes with a responsibility, it’s a relationship which comes with some commitments. You are entirely responsible for your vehicle and certainly of the damages they incur during any mishap or accident. Since it is so much more important, we decided to introduce you to major mistakes made by any common person can commit while buying an insurance policy for two-wheelers:

#1 Research and comparison of policies-

Make a thorough research about insurance policies, compare different plans. Upon researching, check what different companies are offering. Often people mistakenly choose the policy with a high premium rate even when a similar policy is offered by different insurance providers at a much lower premium. Comparing policies while researching can save you from buying expensive insurance policies.

#2 Cheap policy and loss cover

A cheaper policy with a lower premium is good to go to but you should be aware that sometimes cheaper policy does not cover the huge loss. So, something being “cheap” should not be a deciding factor while buying an insurance policy, it is simply not a good approach.

#3 Unaware about No-Claim bonuses

While having a two wheeler insurance renewal, you must confirm from your policy provider if you are eligible for no-claim bonuses. No claim bonuses are offered by the insurance provider to you as a discount on payable premium, and a good money saver.

#4 Cutting premium prices by Small Deductibles

People often choose small deductibles in policies, which affects the return while claiming. Long-lasting policies are more profitable in comparison to traditional one-year or two-year policy plans.

#5 Ignoring Terms and Conditions

If you too are one of those who ignore those almost invisible 5-6 liner content below any policy with the headline saying “T&C”, STOP that right away. It is important that you carefully read the terms and conditions of your policy, be attentive of what it is saying and every clause you are about to agree for. Reading policy allows you to check the coverage it offers in different conditions.

Benefits of having two-wheeler insurance-

Questions like “Is it really necessary for you to have a two-wheeler Insurance?”, “Why the government is bothering you to have Insurance for your motor vehicle?” can be answered by a long list of benefits you get by having Two-wheeler insurance.

Having insurance of the motor vehicle and to be up-to-date with your two-wheeler insurance renewal saves you from many unforeseen events and ensures the safety of your property. The insurance policy covers damages that occur due to
  • Natural disaster- Natural disaster such as fire, earthquake, floods, landslides, storm etc. are situations damaging the lives and properties of people. Having insurance comes in handy if you have to deal with such unpredictable forces.
  • Accidents- No one can tell you if you are going to have an accident or not, we all witness accidents daily in our life. No matter how cautious you are while driving, you are equally accident-prone when an accident occurs either by a misjudgement made by you or others. An accident can cost a huge sum in the form of repair of your vehicle.
  • Theft/burglary- Insurance policies cover damage caused by theft or burglary, either repair cost or replacement cost is paid during the time of theft depending on your situation.

Things to consider before two-wheeler insurance renewal

There are lists of things to check before renewing your insurance policy.
  • Check and compare the policy you are renewing and check if your condition and demands are fulfilled by another policy at a lesser premium.
  • Read about the last renewable date to avoid any extra charges or late payment fees.
  • Ask your insurer for a non-claim bonus, if you are eligible then the bonuses will be deducted from the cost of your premium.
  • Growing competition in the insurance market is a huge benefit for you, as you can choose from many policies before renewing your current plan. There is a high chance of getting a better policy than the existing one with a lower premium rate.

Peace of Mind

Two-wheeler insurance policy empowers you with a sense of security. Life is unpredictable. The only thing you can be assured of in life is ‘change’. It is impossible to know if you are going to be prone to accidents and natural disasters. Why not be prepared for any mishappening which can come in our unpredictable life. You can think insurance as a cost you are paying to have peace and assurance in your life.