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    Long-term v/s short-term two-wheeler insurance: Which is better for you?

    A good insurance cover will see you through tough times on the road and off it. This is true for two-wheeler insurance as well. But the times are changing. The needs of end users are changing and with so many options around, choices can be confusing too.

     

    Insurance for two-wheelers comes in two forms. You get long-term two-wheeler insurance and an annual two-wheeler insurance. Both provide a security cover and accident coverage. You also get benefits like protection from natural disasters and legal liabilities. So, what is the best choice for you in the long run?

     

    How are the two different?

     

    Forgetting to renew your policy is not unheard of. But if your bike meets with an accident after an year of you getting a policy, the repair costs could make a big dent in your finances. In such a case, you cannot file a claim with your insurer. But imagine that you had a long-term two-wheeler policy of three years. Then you could avoid these scenarios. On the other hand, an annual policy allows you to make changes to your plan more easily. So, let’s see how the two differ on the basis of their features.

     

    1.Policy renewal: With long-term policy, you no longer need to renew your policy on an annual basis. Instead, you can do a single renewal after the policy period of two or three years. This is convenient. It also saves you from the risk of a lapsed policy. In short, no more running around for documentation and processing.

     

    2.Flexibility: Our needs and demands change regularly and in annual policy you have more flexibility to modify or change your policy if you have the need to.

     

    3.Cost effective: A long-term policy can help you save on annual premium hikes since the premium amount in most cases remain the same. IRDAI (Insurance Regulatory and Development Authority of India) may raise third-party premium rates by a certain amount. They may also increase the own-damage premium depending on some factors. A long-term insurance is free from these hikes.

     

    4.Add-ons: Compared to long term two-wheeler policy, annual policy gives you more options add-ons. To your policy, you can add riders such as, depreciation allowance, return to invoice, additional third party cover, consumable cover, emergency medical expenses etc.

     

    So, which one to opt for?

     

    Both long-term as well as annual two-wheeler insurance policies have their own benefits. Which one you choose depends on your needs and situation.

     

    In the case of a long-term policy, you don’t have to constantly renew it every year and it is relatively cheaper. So, if comfort and money are your priority, then opt for it.

     

    An annual two-wheeler  policy, on the other hand, offers flexibility and more add-ons. So, if precise protection is your priority along with the flexibility of change, then choose a short-term policy. 





    The bottom line is, keeping your requirement and budget constraints in mind, choose the one that suits you the best. But make sure you are protected.

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