So you finally have made the decision to buy a bike. It’s probably the most exciting purchase for you as you must have cherished a certain bike all along.
You invest a significant amount of time, effort, and thought into the selection of the bike you want to purchase.
Besides the features and cost of the bike you choose, you must pay attention to the proper insurance for the bike and 2 wheeler insurance renewal to have hassle-free riding on the roads.
Why Two-wheeler Insurance Must be a Factor While Purchasing a Bike
It is common to place two-wheeler insurance at the bottom of the list of factors considered while purchasing a bike. However, your bike’s insurance cover is a significant aspect of the safe ownership of a bike. Therefore, thoroughly research and know your bike’s details to understand the elements needed in an insurance policy for the bike.
You should compare quotes from various insurance companies and check how they process the purchase and renewal of two-wheeler insurance policies. There is a wide range of insurance providers you can choose from online, compare bike insurance policies, and decide the one you want to buy after purchasing your bike.
Another point you must remember is whether the provider offers convenience for online purchases and renewals. For instance, with Tata AIG bike insurance renewal online you can easily renew your policy in three quick steps.
You must be aware that the premium of a two-wheeler insurance policy varies according to the bike’s features. Therefore, you must compare premium and other add-ons before purchasing the policy.
Here is How the Bike You Choose Affects its Insurance Cover
The features of your bike determine the structure and cost of your two-wheeler insurance policy. In this context, the manufacturer, model, price, technology, engine capacity, brand value, ‘Insured Declared Value’, and age of your bike are some of the major factors that have an impact on the bike insurance cover you can have. Let us see how each of these factors affects your bike’s insurance cover.
#1. The Manufacturer of the Bike
The manufacturer of your bike is the first identification marker of the vehicle. Therefore, the brand value of the automobile company you purchase your bike from has a substantial impact on the insurance cover for your bike.
For instance, if you purchase a Royal Enfield bike, there is a significant brand value associated with the manufacturer, leading to a high price for the bike and a corresponding high premium under the insurance policy of the bike.
#2. The Model of the Bike
In addition to the manufacturer of a bike, its model and make also contribute to the price and other features of the two-wheeler insurance policy you can buy for it.
This is the reason behind two bikes manufactured by the same company having varying amounts of premium in their insurance cover.
#3. The ‘Insured Declared Value’ of the Bike
The ‘Insured Declared Value’ (IDV) of your bike, that is, its present market value after accounting for depreciation, is the most important component that determines the premium for your bike insurance cover. If you quote a higher IDV for your bike, you will end up paying a high amount of premium on its two-wheeler insurance policy. However, you may not receive a correspondingly high sum in the event of a total loss associated with the bike.
On the other hand, if you undervalue your bike’s IDV, you will pay a lower amount of premium on its insurance policy. In the event of a total loss of the bike, however, you will not receive a sufficient amount under the claim settlement. Therefore, you must carefully quote the adequate IDV while purchasing or renewing your two-wheeler insurance policy.
#4. The Capacity of the Bike’s Engine
The engine of a bike is its powerhouse and a distinguishing aspect. In this context, bikes are often described by their engine capacity to pitch their sale.
Therefore, the higher the capacity of your bike’s engine is, the higher the premium on the insurance policy you buy for it.
#5. The Technological Strengths of the Bike
If your bike is equipped with some specific or advanced technology, then it will directly affect the premium amount on its insurance policy. For instance, if your bike has an inbuilt anti-theft mechanism, it is less vulnerable to theft. This feature will reduce the premium on the two-wheeler insurance policy you purchase.
Although it is not mandatory to have a standalone own damage two-wheeler insurance policy for your bike, you must consider buying a comprehensive bike insurance policy that ensures complete financial protection for you during uncertain events on the road. Such a policy covers damage caused to a bike due to an accident or theft; it also provides a personal accident cover for the policyholder.
However, the general wear and tear of a bike are not covered under the policy. Furthermore, if you drive under the influence of alcohol or drugs, any potential accident is outside the bike insurance cover.
The bike you choose has a significant bearing on the insurance cover you can have for it. Therefore, you must treat two-wheeler insurance as a factor in your purchase decision.
Disclaimer: This is a collaborative post on behalf of TaTa AIG, but then again as always, we are devoted to providing content that is supportive and valuable to the readers.