March 19th, 2021 | Updated on December 4th, 2021
One of the first things you should do when buying a bike is to find the right bike insurance policy. Whether you have to renew an old bike insurance plan or buy a new one, you must be careful to choose the right policy.
While you may not have given much thought to buying the right bike insurance, there are some common mistakes that you must avoid.
1. Considering Only The Price Of Insurance
Most of us are drawn to low price bike insurance policies. But should the price be the only driving factor for your purchase decision?
If you look for bike insurance solely based on the premium, you may end up with unsatisfying coverage.
This may cause problems between you and the insurance provider at the time of claiming the policy. Therefore, make sure you consider other important factors when purchasing bike insurance.
2. Buying Without Enough Research
Much like shopping for anything else, comparing different bike insurance policies is vital before deciding on one.
However, it is strangely quite common for people to make an important decision, such as buying bike insurance without paying much attention.
When you compare different bike insurance policies by various insurance providers, you understand the variety of benefits available in the market that can be valuable to you.
Without doing so, you may end up with a bike insurance that does not satisfy your needs. You can read about customer reviews about bike insurance or read more about the insurer’s credibility.
Additionally, this may also bring bike insurance add-ons to your attention that you may have missed earlier.
3. Not Choosing The Right Idv
The insured declared value or idv is the amount that the insurance provider is entitled to provide to the insured individual in case of theft or loss.
Simply put, it is the sum assured provided by the insurer to the bike owner. The greater the idv, the higher is the premium for the bike insurance.
Often, bike owners consider declaring a lower idv than the market value as it may save them money on the annual premium. Make sure you get the right idv with your bike insurance so that in case of total loss or theft, you are completely covered.
4. Not Transferring The No Claim Bonus
When you go through the bike insurance policy tenure without making a claim, the insurance provider offers a no claim bonus (ncb). This can be utilized as a discount on the premium amount when you go for bike insurance renewal online.
You are eligible for the no claim bonus when you purchase a new bike insurance policy or renew it. So, make sure you don’t miss out on the discounted premiums as a result of ncb.
5. Entering Incorrect Personal Information
Providing valid and accurate personal information to the insurance provider is crucial as it can affect the claim or bike insurance renewal online.
You are required to submit details such as name, registration certificate number of the two-wheeler, details of the nominee, and the insurance information of the last policy.
In case there are any discrepancies found in the information you have provided, the insurer may consider it an attempt for insurance fraud. Consequently, your bike insurance claim may not be approved, and you may end up without a financial cover.
6. Not Renewing Policy On Time
It is unadvisable to be on the road without proper bike insurance coverage. Renewing your policy on time lets you keep your ncb and remain covered under the bike insurance.
In case your policy lapses due to negligence, it is considered an offence under the law. Therefore, it is best to go for timely bike insurance renewal online to avoid any penalties that may be charged.
Now that you are aware of the common mistakes possible when you buy bike insurance, you can make a well-informed decision. Remember to choose trusted banks such as tata aig to get adequate bike insurance coverage with valuable add-ons.