8 Things to Know Before Renewing Your Two Wheeler

Riya, a 34-year-old equity analyst from Mumbai, gets a buzz on her phone: it’s a reminder she set on her phone to renew her two-wheeler policy.

With an important presentation due the next day, Riya is already knee-deep with a lot of work. She feels she has no time to double-check her policy details and quickly renews the insurance online. But that may have been a mistake…

Things to Know before renewing your Bike Insurance

1. The Expiry Date

It is advisable that you take action on your two-vehicle insurance well in advance rather than waiting for the existing policy to lapse. If not, you stand to lose all the perks accumulated so far.

Like Riya, you can also set a reminder on your phone or calendar, so you never miss out on the expiry date.

2. No-Claim Bonus

A no-claim bonus is a bonus that you are entitled to if you did not file any claim in the previous year for your insurance policy.

Most companies offer a no-claim bonus of about 20-50 percent on the premium of the new policy. The amount can be substantial when you haven’t claimed the insurance for multiple years.

3. Cover

Renewing your bike insurance plan gives you a chance to ask for changes in the coverage and benefits. Once you have used the insurance policy for one year, you should have a good idea of what works for you and what does not. So, you should be able to choose your plan wisely and make necessary changes during renewal.

This is why Riya should have spared a few minutes to review her policy details. She might have had the potential to get an insurance plan tailor-made for her requirements. 

So, before you renew the policy, check that the plan offers sufficient coverage for your bike. If you get a plan customized to your vehicle model and make, it is not only better suited to your needs but also makes it easier to negotiate the deal.

All the details of the cover are given in the fine print of the insurance policy, so you should go through it thoroughly to know what is covered. This should help you ensure you get the best plan for your vehicle.

4. Market Value of the Vehicle

The IDV (Insured Declared Value) of your two-wheeler is an important factor affecting your insurance policy’s premium. This is the current market value of your two-wheeler; the value you get for your vehicle in case of theft or loss.

You can calculate this value yourself at the time of renewal because it is dynamic. Knowing this value helps you get an estimate of the insurance premium. It also makes it easy to negotiate with the provider and get the best rate for renewal.

5. Documents

One of the most critical considerations for renewing your two-wheeler insurance is handy information. Most document requirements are common across insurance companies. Ensure that you keep all these documents handy as the date of expiry of your current policy nears.

Here are some of the documents you may need to produce:

• Vehicle registration number
• Driving license
• Government-issued ID and proof of address
• Existing insurance policy number
• Pollution Under Control (PUC)
• Credit/debit card details

6. Add-Ons

Another thing Riya should have checked before renewing her policy is whether she has the necessary add-ons.

A basic vehicle insurance policy generally doesn’t address all the events associated with owning and driving a two-wheeler. Add-ons are a great way to avail some extra protection for your bike. Here are a few you can check out:

Zero Depreciation

This is a profitable add-on that covers the normal wear and tear of the vehicle. This means the depreciation is not deducted from your payout while making a claim if you have this add-on.

Medical Cover

Another useful add-on is the daily cash benefit in case of severe damage to the bike or hospitalization.

The add-on covers your daily expenses if you are hospitalized and the daily commute charges when the bike takes longer to get right. The payout amount is determined on the basis of your policy’s terms. Some companies add this benefit to the policy by default.

Pillion Rider Cover

Opting for this add-on entitles you to the medical expenses of the pillion rider in case of an accident. It is suitable for those who carry pillion riders regularly.

These add-ons are purchased separately from the core policy based on the varying needs of the owners. However, adding these extras to the policy increases its premium along with its coverage.

In Riya’s case, she never has a passenger with her while riding her bike, which means she’s paying extra for an add-on she hardly uses. So, it is important to choose these add-ons wisely.

Some other types of add-ons you can consider while renewing bike insurance include:

• Tire protection
• Consumable cover
• Breakdown assistance
• Engine and gear-box protection
• Roadside assistance

7. Voluntary Deductible

Choosing a higher deductible definitely brings down the premium while giving you good coverage. Deductibles are one of the two types – compulsory and voluntary. Voluntary deductible is added on top of compulsory deductible, which means you pay an amount during claim settlement.

Increasing this amount lowers the premium but also reduces your claim amount. So, make sure you pay attention to deductibles when looking to renew your two-wheeler insurance.

8. Personal Details

Renewing your two-wheeler insurance policy gives you a chance to check, change and correct your details quickly. You might notice some spell errors or mistakes like date of birth while going through the information submitted for your insurance.

At this time, you can ask for correction on the renewed policy by submitting the required documents and proofs.

Another benefit is updating personal information. For example, Riya shifted to a new place a few months ago. The renewal would have been the perfect opportunity for her to update her address in the policy details. She simply would have had to provide proof of address.

Conclusion

Regardless of the vehicle you own, renewing your bike insurance cover keeps it protected and helps comply with the laws. Ensure that you keep a check on the expiry date of the insurance plan and renew well in advance.

Compare the options available online to save time and money finding the best deal for your vehicle cover. We hope these points help you renew your two-wheeler insurance effortlessly.