Buying any product or availing any service involves analysing your needs, collecting information on the product/service and then proceeding to make the final choice. Comparing the available alternative is a key step in your purchase decision. No one buys simply looking at an advertisement without evaluating its alternatives and benefits.
So why not observe the same prudence when it comes to bike insurance? Buying bike insurance is akin to an ordinary purchase, except insurance is an investment for an uncertain future event. If you do not observe similar steps in buying your insurance policy, it may result in you having a policy with either inadequate benefits or unfavourable terms. To avoid these rookie mistakes, consider the below-mentioned tips to compare bike insurance policies.
#1 Coverage
Two-wheeler insurance plans come in two choices – third-party or comprehensive. Since third-party two-wheeler insurance is the minimum requirement as per law, it is the most basic coverage that you can purchase. Comprehensive plans on the other hand are beneficial as they provide coverage for own-damage where a third-party policy falls short. Thus, make sure to check for the coverage as the first step when comparing insurance policies.
#2 IDV
Insured declared value or IDV is the approximate market value of your vehicle reduced by depreciation. Generally, two wheeler insurance 3rd party plans have no option to increase or decrease the IDV. On the contrary, comprehensive plans are available with an option to customise the same. When comparing different insurance plans, do pay heed to the IDV as it can be a major factor that influences the premium and the coverage offered by your insurer.
#3 Add-ons features
Add-ons are extra features that are available as an option when you purchase comprehensive plans. Determine which are essential add-ons for your use case and accordingly choose an insurance company. Some popular add-ons to not miss are the zero depreciation add-on, return to invoice cover, NCB protection cover, etc. Pro tip: your two wheeler insurance price has a direct impact depending on the number of add-ons that you opt for. So be wise and select only necessary add-ons to keep your premiums in check.
#4 Process of the claim and its settlement ratio
When purchasing a policy, do not compare only the price and features, but also the claim process. In this digital age, insurance companies that offer claim settlement via the online and offline channel both are at an advantage. It helps you file an application depending on your preference with the online medium. Further claim settlement ratio is another concern most buyers have. It is the ratio that is derived in comparison of the claims received to claims settled. An insurance company with a higher claim settlement ratio is more reliable.
#5 Network garages
Opting for an insurer with an affiliation to a wide range of network garages is essential. This way, your insurer will directly settle the cost of repairs and you need not pay for it. It can be a make or break factor for those policyholders who are not willing to pay for the repair costs upfront.
These are some factors that you should not miss at all when comparing various insurance plans. While the price is a determining factor, do not base your purchase solely on it. Account for other factors like deductible, no claim benefits that will help you keep the price in check and avail adequate insurance coverage.
