Comprehensive Bike Insurance: An Essential Guide

Introduction

Owning a bike is fun, but mishaps can always happen. Maybe you’re worried about theft, repairs after an accident, or even third-party damage. This is where comprehensive bike insurance can come in handy! Let’s discuss how comprehensive bike insurance can protect you financially and keep you rolling worry-free.

What is Comprehensive Bike Insurance?

Comprehensive Bike Insurance offers complete protection for your motorcycle, including third-party liability and damage coverage. It ensures comprehensive security for your bike against various risks of theft, fire, and natural calamities and includes benefits like Bonus.

Why is Comprehensive Bike Insurance Important?

1. Minimises bike repair costs in case of accidents: This is a crucial benefit. If you’re in an accident, repairs can be expensive. Comprehensive insurance covers those costs, minimising the financial burden on you.
2. Covers own damages against fire and theft: This goes beyond accidents. If your bike is stolen or damaged by fire, comprehensive insurance will help you recover the cost of the motorcycle or repairs.
3. Covers third-party damages to people, vehicles and properties: This is mandatory by law. It protects you financially if you injure someone, damage their vehicle, or cause property damage in an accident.
4. Flexibility to customise plans with add-ons: This is a significant advantage. Comprehensive insurance often allows you to add extra coverage for personal accident benefits or a No Claim Bonus reward for safe riding.
5. Flexibility to add personal accident cover: This provides financial assistance in case of injury or death due to a bike accident.
6. No Claim Bonus as a reward for driving well: This incentivises safe riding. If you don’t make any claims for a certain period, your insurance premium gets discounted by 20% during the first year and up to 50% discount in the 5th year for not claiming insurance.

Breaking Down the Cost of Comprehensive Bike Insurance

Comprehensive bike insurance offers peace of mind, but understanding the cost factors can help you get the right policy. 

• Bike’s make, model, and variant

The type of bike you own impacts the premium. High-end models or sports bikes have higher premiums due to their repair costs and replacement value. For example, if you own a Royal Enfield Himalayan Bike, its insurance cost will be higher than that of a regular Honda bike. 

• Bike’s age and condition

Due to a steady decline in their market value, older bikes typically have lower premiums. However, if you keep your bike in good shape and ensure its regular maintenance, you might get a better deal.

• Bike’s location and usage

The premium is affected by the city where your bike is registered. The cost of premiums may increase in urban locations with higher traffic and theft rates. The level of risk, and hence the premium, also rises when you use your bike for extended trips or everyday travelling.

• No-claim Bonus 

NCB rewards you by lowering your premium considerably if you still need to claim. For example, the Own Damage portion of your premium may be discounted by up to 50% if you have yet to file any claim for five consecutive years.

• Add-On Covers:

Although more expensive, additional covers can help in emergencies, engine protection, and zero depreciation coverage, as per your needs. 

• Voluntary Deductibles:

You can reduce your premium if you pay a greater voluntary deductible, which is the amount you necessarily pay at the time of a claim. However, in cases where you have to file a claim, be ready to spend more cash out of pocket.

A few Standard Exclusions of Comprehensive Bike Insurance

While comprehensive bike insurance offers a wide range of coverage, there are certain situations it won’t cover. Here are a few standard exclusions to be aware of:

Consumables:  These parts wear out over time due to regular use, like engine oil, brake pads, and tyres.  Their replacement is considered routine maintenance and not typically covered by insurance.

Normal Depreciation:  As your bike ages, its value naturally decreases.  Comprehensive insurance covers the bike’s value at the time of the claim, not its original purchase price.

Riding without a valid license:  If you’re caught riding your bike without a valid license and have an accident, your insurance claim will likely be rejected. This is because operating the bike illegally voids the insurance contract.

Riding a bike under the influence of alcohol:  Similar to riding without a license, insurance companies won’t cover damages if you’re under the influence of alcohol and have an accident. This is due to the increased risk associated with impaired driving.

However, a few of these exclusions, like depreciation and consumables, can be omitted by getting respective add-ons while buying 2-wheeler insurance.

Key Takeaways

Comprehensive bike insurance is an invisible shield against unexpected risks, ensuring peace of mind as you ride. Make sure you get bike insurance with relevant Add-ons and compare plans from different insurers on platforms like PhonePe before signing up for insurance.