Mistakes to Avoid While Buying Bike Insurance

As per the Indian Motor Act of 2019, two-wheeler insurance is mandatory; otherwise, you will be subject to a penalty of ₹2000. Having the right bike insurance ensures you have the right comprehensive coverage and financial assistance in case of an accident. It also ensures you have peace of mind.

Moreover, according to an independent report ‘Road Accidents in India, ‘ 4,61,312 road accidents occurred in 2022, claiming 1,68,491 lives. The right bike insurance will provide you and your family a safety net. However, choosing the right one can be daunting as several insurance companies offer various plans.

Additionally, the vast number of choices can often confuse you. Thus, this article will walk you through the mistakes to avoid while buying bike insurance so that you can make the right decision. So, read this article till the end.

Mistakes to Avoid While Buying Bike Insurance

The purchase of two-wheeler Insurance is an important step towards protecting yourself from unforeseen accidents, theft & damage that can occur. However, there are several mistakes to avoid while buying bike insurance. Some of them are:

1. Improper Researching

It’s essential to research different insurance providers and the policies they offer. Each company offers different coverage options, benefits, and customer service standards. Improper research can result in a policy that doesn’t meet your needs.

2. Preferring a cheaper plan always

Even if the policy’s cost is significant, it shouldn’t be your sole consideration. Less expensive policies may not offer complete coverage. Thus, weighing the price against the available coverage and perks is preferable.

3. Not Reading the Terms and Conditions

The terms and conditions of the policy contain important information on coverage, inclusion and exclusion, and the process for filing a claim. Ignoring this can lead to surprises when you need to use your insurance later and even out-of-pocket expenses.

4. Not Using No Claim Bonus

A No Claim Bonus (NCB) is a discount on your premium that you receive if you make no claims during your policy period. Not utilising this bonus is like leaving money on the table. Thus, while getting a bike insurance renewal, you can save money on premiums or get an increment in your sum insured.

5. Not Choosing the Right Insured Declared Value (IDV)

The IDV represents the maximum compensation you can receive under your policy. It is a common mistake to opt for a lower IDV to reduce premium costs. However, this could result in inadequate coverage.

Always ensure that the IDV accurately reflects the current market value of your bike to avoid being underinsured. Remember, a lower premium might seem attractive, but it could cost you more in the long run if your coverage is insufficient.

6. Ignoring Deductibles

A deductible is the amount you must pay out of pocket when you file a claim. Neglecting this aspect can lead to unexpected expenses during claim settlement. Understanding and factoring in the deductible while choosing your bike insurance policy is crucial to ensure you’re prepared for potential costs.

Remember, a lower deductible might increase the premium, but it reduces the amount you would have to pay in case of a claim. Conversely, a higher deductible might decrease the premium but increase your out-of-pocket expenses during a claim.

7. Applying With Incorrect Personal Details

When you buy a policy with incorrect personal or vehicle details, all the subsequent claims can face complications. For example, suppose your ID proof shows the first name is Rajesh. However, you have accidentally applied with the name Rsjesh because of the typo. Every time you claim insurance, the insurer will try to deny it because your name does not match.

When purchasing bike insurance, you should always double-check personal details such as name, age, address, bike information, etc.

8. Avoiding Add-Ons to Save Premium

Add-ons require additional premiums, which can make the insurance slightly costly. However, these are essential covers that offer extra coverage. For instance, the roadside assistance add-on provides roadside assistance when your bike breaks down in the middle of your journey. Similarly, a personal insurance add-on cover offers insurance amounts to a nominee in scenarios where the insured dies due to an accident.

What Will Happen if You Make Mistakes When Buying Bike Insurance?

Making mistakes when buying online bike insurance can have several repercussions, affecting your current premium and future insurance policies.

1. Increased Premium

One of the direct repercussions of making mistakes while purchasing insurance is an increase in the premium. This may happen if you give false information or neglect to disclose prior claims. Such errors may change the insurance company’s risk evaluation, raising your premium and possibly putting a heavy financial burden on you.

2. Decreased Protection

Not choosing the right coverage or avoiding add-ons to save on premiums can decrease your protection. In the event of an accident or damage, your policy may not cover certain costs, leaving you to bear these expenses.

3. Surprises at the Time of Incidents

If you haven’t read the terms and conditions thoroughly, you might be in for surprises at the time of incidents. For example, if tyre protection weren’t added, tyre damage would not be covered, leaving you to bear the cost of repairs or replacement.

4. Claim Rejections

Mistakes like applying with incorrect details can result in claim denials. These denials can lead to out-of-pocket expenses. Even if your claim gets approved on the second attempt, it could take time. So basically, you would still have to spend the repair costs from your pocket until you receive the insurance amount.

These mistakes can complicate the insurance claim process, which can keep showing as history whenever you try to renew or get new insurance. Thus, the insurer might charge a higher premium for insurance based on the history.

Key Takeaways

Purchasing bike insurance is crucial to ensure your well-being. Understanding the mistakes to avoid while buying bike insurance can ensure a smooth and hassle-free process. Failing to avoid these mistakes can lead to inadequate coverage, legal complications, or financial losses.

You should take the time to research thoroughly, understand the policies, and make an informed decision. Doing so will provide you with the peace of mind that comes with knowing you have the right insurance coverage for your bike and riding needs. Avoiding these mistakes will save you money and protect you from potential headaches.

To further simplify the process, consider using platforms like PhonePe, which offer a seamless and hassle-free bike insurance purchase experience.