Driven by convenience, affordability and environmental friendliness and fueled by the increasing cost of new vehicles, the demand for second hand two-wheelers for sale is soaring at an unprecedented rate.
Whether new or second hand, buying online bike insurance for your two-wheeler is a critical consideration that protects your financial well-being, ensures compliance with traffic laws and provides safety against unforeseen risks.
However, to make an informed decision, it is pivotal to keep a few things in mind while buying insurance for a second hand bike. Read on to learn about them in detail.
Tips to Buy Second Hand Bike Insurance
Estimating the Premium Amount
Premium payments can strain your monthly expenses and budget, impact savings and affect your credit score, especially if you do not make payments on time.
This significant impact on finances highlights the necessity of estimating the premium before buying insurance for second hand two-wheelers.
Use reliable methods, such as a bike insurance premium calculator, to get an idea of how much you will have to pay for your second hand bike insurance.
Checking Insurance Policy Coverage
Understanding the extent of coverage provided by the chosen insurance policy holds utmost importance.
Considering aspects such as IDV (Insured Declared Value) and the compulsory deductible can help you:
- Understand the out-of-pocket expenses when raising claims.
- Identity gaps in coverage.
- Determine the maximum compensation in case of total loss.
- Ensure adequate protection for your second-hand bike.
- Make smart renewal choices.
Choosing the Right Type of Two-Wheeler Insurance
There are three different types of second hand bike insurance policies available in the market with each offering varying levels of coverage and benefits. To make the right choice, it is crucial to consider several factors, including:
- Two-wheeler’s age and condition
- Your budget
- Two-wheeler second hand price and market value
- Personal preferences
Here is a brief overview of the types of two-wheeler insurance policies you can choose from:
- Third-Party Insurance: Protects against expenses arising from third-party liabilities.
- Own Damage Insurance: Covers damages incurred to your bike due to unforeseen incidents, such as theft, road accidents or natural disasters.
- Comprehensive Insurance: Combines the coverage offered by the third-party and own damage insurance and ensures complete protection from vehicle-related risks.
Add-Ons
It is possible that you find your two-wheeler insurance policy lacking in certain areas, especially if you have purchased a second hand two-wheeler with unique requirements.
In such a scenario, add-ons can bridge the coverage gap and enhance policy benefits, providing added protection and greater peace of mind.
By choosing relevant add-ons, such as a personal accident cover, consumables cover or depreciation cover, for your bike insurance, you can strengthen your policy and enjoy extensive coverage for just a fraction of the additional premium.
Reputation of the Insurance Provider
Another indispensable second hand bike insurance buying tip is to research the credibility and reputation of the insurance company you have chosen for the purchase.
This is because choosing a reputable insurer like TATA AIG provides multiple perks, including readily available expert customer support, transparent and comprehensive policies, a higher possibility of claim approval and timely claim settlement.
Thus, before purchasing an insurance policy for a second hand two-wheeler, check the customer reviews and ratings, industry recognition and market experience of multiple insurance providers and compare them to select the one that is suitable.
Policy Inclusions and Exclusions
The inclusions and exclusions of bike insurance significantly impact premium costs, policy flexibility and coverage limits.
With additional inclusions increasing premiums and exclusions reducing coverage scope, careful policy evaluation and customisation are crucial to achieve a balance between the required financial protection and affordability.
Insurance Transfer
Insurance transfer is a facility that allows the new owner of a two-wheeler to transfer the existing bike insurance policy from the previous owner’s name to his own.
This process ensures seamless continuity of insurance coverage and prevents policy lapse due to sale. In addition, it grants the accumulated No Claim Bonus to the new owner (NCM), leading to discounted policy premiums.
By considering insurance transfer, you can avoid duplicate policies and unnecessary expenses resulting from redundant two-wheeler insurance policy purchases or renewals.
Coming to an End
Regardless of the status of a two-wheeler, be it new or second hand, one crucial aspect remains constant- the need for bike insurance coverage.
However, second hand bikes require more urgent and comprehensive protection as they are more prone to costly repairs due to unreported damages and aged components.
By keeping essential considerations in mind listed above and assessing your needs and budget, you can secure the right coverage and make a smart investment, ultimately protecting yourself and your second hand two-wheeler.
