Renewing two-wheeler insurance is a necessary process to ensure continuous protection for your two-wheeler. Many people overlook certain key aspects when it comes to renewing their insurance policy, which can result in insufficient coverage or higher premiums.
This article will walk you through the essential factors to keep in mind when renewing your bike insurance, helping you make informed decisions that suit your needs.
1. Check the Expiry Date of Your Existing Policy
One of the first things to do when renewing your two-wheeler insurance is to check the expiry date of your current policy. Riding with an expired insurance policy is illegal in India and could lead to fines or penalties.
Besides, if your policy lapses, you will not have coverage for any damage or theft, leaving you vulnerable to out-of-pocket expenses. Renewing your policy well before the expiry date ensures that your bike is always covered, and you avoid paying late fees or undergoing a tedious inspection process.
2. Compare Insurance Plans from Different Providers
When it is the time to renew your two-wheeler insurance, it can be beneficial to compare policies from various insurers rather than automatically renewing with your current provider. Insurance companies frequently offer discounts or better coverage for new customers.
By comparing plans, you might find a better deal or extra benefits that suit your needs. Use online tools and aggregators to compare premium rates, coverage options, and add-on services before making a decision.
3. Re-assess Your Coverage Needs
Your insurance needs may have changed since you last purchased or renewed your policy. For example, if your bike is older, you might not need the same level of coverage as before.
Comprehensive insurance policies offer wide-ranging protection, but third-party insurance is the minimum legal requirement in India. If your bike's market value has decreased, you might consider downgrading to a third-party insurance policy or adjusting the Insured Declared Value (IDV) to lower the premium. Assess your requirements carefully before renewing.
4. Review the Insured Declared Value (IDV)
The Insured Declared Value (IDV) represents the maximum amount your insurer will pay in case of theft or total damage to your bike. As your bike ages, its value depreciates, and so does the IDV. When renewing your policy, you should update the IDV to reflect the current market value of your bike.
This is important because a lower IDV can reduce your premium but might not offer sufficient compensation if you need to make a claim. On the other hand, inflating the IDV can result in unnecessarily high premiums. Ensure your IDV strikes the right balance.
5. Look for No Claim Bonus (NCB)
A No Claim Bonus (NCB) is a discount offered by insurers to policyholders who have not made any claims during the previous policy term. This discount accumulates with each claim-free year and can significantly reduce your premium upon renewal.
Ensure that you check your NCB status when renewing and confirm that it has been correctly applied to your premium. Also, if you are switching insurers, you can transfer your accumulated NCB to the new policy, so it's always worth retaining your NCB benefits.
6. Consider Add-Ons and Optional Covers
Add-ons can enhance the coverage of your two-wheeler insurance, and renewal time is the perfect opportunity to evaluate whether you need any. Some common add-ons include:
-
Zero Depreciation Cover
This ensures that the full value of parts is reimbursed without factoring in depreciation
-
Roadside Assistance
Offers assistance if your bike breaks down or you need help with minor repairs
-
Engine Protection Cover
Particularly useful if you live in an area prone to flooding, this add-on covers engine damage
-
Personal Accident Cover
Although compulsory, you might want to increase the amount of personal accident coverage offered
When reviewing your add-on options, consider your riding habits, the area you live in, and the potential risks that come with it. Don't opt for unnecessary add-ons just because they are available; choose the ones that add real value to your policy.
7. Check for Discounts
Insurance providers often offer various discounts that can help lower your renewal premium. Some common discounts include:
-
Anti-Theft Device Discount
Installing an anti-theft device approved by the Automotive Research Association of India (ARAI) can help reduce your premium.
-
Membership Discounts
Being a member of a recognised automobile association can also make you eligible for a discount.
-
Voluntary Deductibles
Opting for a higher voluntary deductible can lower your premium. However, this means you will have to pay more out-of-pocket in the event of a claim.
Always ask your insurer about available discounts when renewing your policy to ensure you are getting the best deal.
8. Understand the Claim Settlement Ratio
The claim settlement ratio is a key indicator of how reliable an insurer is when it comes to settling claims. It represents the percentage of claims settled by the insurer out of the total claims received. When renewing your bike insurance, it's worth researching the claim settlement ratio of your insurer.
A higher claim settlement ratio indicates that the insurer is more likely to settle claims without unnecessary delays or rejections. Always go for an insurer with a good track record of handling claims.
9. Renew Online for Convenience
Online renewal is a quick and convenient way to ensure continuous coverage without the hassle of paperwork. Most insurers offer an easy online renewal process that allows you to update your details, adjust coverage, and make payments seamlessly.
You can even apply for discounts and view different policy options online. In addition, renewing online often comes with benefits like instant policy issuance and additional discounts on premiums.
10. Check for Policy Exclusions
Every insurance policy comes with certain exclusions, which are specific situations or conditions where the insurer will not provide coverage. Common exclusions include normal wear and tear, mechanical or electrical breakdowns, or riding under the influence of alcohol.
Before renewing, take the time to carefully read through the policy document and check for exclusions to avoid surprises during a claim. If any terms are unclear, contact your insurer for clarification.
Also Read: Mistakes To Avoid While Choosing a Two-wheeler Loan
Conclusion
Renewing your bike insurance doesn't have to be a routine task that you rush through. Taking the time to assess your current policy, compare other options, and understand key factors like IDV, NCB, and add-ons can ensure that you are getting the best value for your money.
Platforms like Bajaj Markets offer convenient tools to help you compare policies and find the right two-wheeler insurance. Remember that what worked for you last year may not necessarily be the best option today, so it's always worth reviewing your policy before hitting the renewal button. By keeping these factors in mind, you can make a more informed decision and enjoy continued protection on the road.
