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How to Choose the Best Two Wheeler Insurance Policy?

Team AckoFeb 27, 2024

When there’s an option to choose, there’s scope for some indecision while making the choice. Options come with their set of pros and cons. Going ahead with a particular option is based on at least basic analysis, either conscious or subconscious. Which motorbike insurance to go for is also a matter of choice that needs some analysis. Read ahead to find out how to choose the best two-wheeler insurance.

Contents

Step 1 – Two-wheeler Insurance Coverage
Step 2 – Two-wheeler Insurance Price
Step 3 – Two-wheeler Insurance Provider
Step 4 – Two-wheeler Insurance Purchase and Renewal
7 reasons why you don’t have the best two-wheeler insurance rates

Step 1 – Two-wheeler Insurance Coverage

Primary aim of insurance is to minimize financial losses in case of unfortunate events that are covered by the policy. Thus, the coverage aspect of your two-wheeler insurance is number one on the priority list.

First, you have to figure out the kind of coverage you need. A Comprehensive type of policy is considered as the best insurance policy for bike because of its coverage. It covers the mandatory Third-party Liability Insurance as well as Own Damage. You can also go for appropriate Add-ons to strengthen your policy.

Step 2 – Two-wheeler Insurance Price

Once you know what kind of coverage you need, you can search for insurance providers who offer that coverage at a lower price. Different insurance providers provide policies at a different cost. Note that, Two Wheeler Third-party Insurance rates are fixed by Insurance Regulatory And Development Authority Of India (IRDAI), the premium charged varies for Comprehensive Insurance policies.

A bit of research will tell you which insurance provider offers what kind of coverage. There are web aggregators as well who compile such data and present to you the lowest priced policy. While dealing with such websites, it is important to double check the coverage offered by the lowest priced policy. Coverage shouldn’t be compensated for price as it defies the primary aim of insurance.

Also, read: Third Party Two Wheeler Insurance

Step 3 – Two-wheeler Insurance Provider

Now that you are sure about your coverage and have a price bracket in mind, it is time to select the insurance provider. Major insurance providers have an online presence. You can simply visit their website and purchase a two-wheeler insurance policy. It is as simple as visiting an e-commerce store and buying items from there. An insurance provider’s viability should be based on the pre-purchase and post-purchase support offerred.

Leading insurers have a smooth user journey. The user interface is easy to understand and navigate. As a result, the overall user experience tends to be comfortable. A lot of information is available on the website in the form of blog posts, infographics, etc. You must know what is covered and what is not covered by the chosen policy, and then make the payment.

Insurers that provide the best two-wheeler insurance focus a lot on after-sale service. Insurance is not like an over-the-counter product that can be felt immediately after purchase. It is a financial product which safeguards the insured from incurring huge losses. This is done when the insured person’s claim is realized. Thus, an insurer’s claim settlement process is of utmost importance. That process has to be transparent, convenient, and hassle free.

To check if an insurer’s claim settlement process is stress free, you can check their Two Wheeler Claim Settlement Ratio. It is generally mentioned on the website. Apart from that, checking user reviews is also a good option. Speaking to friends and relatives who have purchased insurance from that provider can be helpful. Social media handles of the insurer can also give insights to its brand personality.

Step 4 – Two-wheeler Insurance Purchase and Renewal

Once you make the payment, your insurance policy document is sent to your registered email’s inbox within minutes. Make sure to keep renewing your policy in a timely manner to ensure that you are never out of coverage when it comes to insurance.

7 reasons why you don’t have the best two-wheeler insurance rates

You might be paying more for buying your two-wheeler policy. Don’t worry, just go through the list and you know what is to be done upon your next bike insurance renewal. Following are some of the reasons why you may not have the best bike insurance rate for your policy.

1. You bought the policy without comparing

Comparing two-wheeler insurance plans from various insurers gives a clear picture of the options available in the market. Your prime focus must be the coverage of the plan. Next comes the terms and conditions, and finally the premium. Compare plans on these parameters and you would already have saved a few bucks.

2. You opted out of Voluntary deductibles

In a bike insurance policy, there are two main types of deductibles - Compulsory and Voluntary. The Compulsory deductible is fixed and is according to your bike’s engine capacity (cc). However, you have control over the Voluntary deductible. You can speak to your insurer and mutually agree on a percentage. In case of a claim, you bear the percentage cost of the claim amount which was decided between you and the insurer. Opting for a Voluntary deductible has a direct effect on the premium of your bike insurance policy because you agree to bear a part of the claim amount.

3. You missed the renewal date

Not renewing your bike insurance policy in time impacts the cost you pay for renewing it. If there is a delay of more than 90 days, your applicable No Claim Bonus (NCB) will drop to zero, and the premium will increase. Always renew the plan at least a week before expiry to get continuous coverage and avoid missing the renewal date.

4. You didn't buy online

Things were pretty much manual before the age of the internet. But that has changed now and this new change is applicable to the insurance industry as well. Now, online bike insurance policies are cheaper as compared to their offline counterparts. This is due to the low operational costs, no agent commissions, or other costs involved in generating your bike insurance policy via the online method. This process is also time-saving. Always buy/renew bike insurance online to get lower rates.

5. You bought more add-ons than necessary

Buying add-ons increases your bike insurance premium. So it is necessary that you select only those add-ons that could be useful during the policy period. And skip those which you think are not of much value.

Note: Purchasing an add-on with your bike insurance policy is subject to its availability.

6. Your bike is not secured with an anti-theft device

Securing your bike with an anti-theft device will give you a dual advantage. First, it will prevent bike theft, and second, you might get a discount on your bike insurance policy. This is because some insurance companies provide a discount as a token of appreciation for taking efforts and securing the bike against theft.

7. You are not a member of the Automobile Association of India

Your bike insurance company may allow an additional discount on insurance premiums if you are a member of associations like the Western India Automobile Association or Automobile Association of Southern India.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. Explore More: