The Benefits Of Buying Long-Term Two Wheeler Insurance
Bike insurance has now become mandatory with the rise in accidents. Read on to know what are the benefits of long term two wheeler insurance and ensure the financial safety of your bike.
The Benefits Of Buying Long-Term Two-Wheeler Insurance
With the rise in the number of vehicles on the road, the rate of accidents has increased. Getting insurance for your two-wheeler is mandatory. But many people have misconceptions about getting long-term insurance for their scooter or motorbike. Take the case of Neeraj Chauhan.He bought a yearly policy for his new motorbike.But he decided to give it a miss after the policy period concluded. The paperwork seemed too much. Unfortunately, he met with an accident soon after. He then had topay for the repairs from his own pocket. Had he opted for a long-term insurance cover, he would have saved on documentation.Even the premium would have remained the same.
How does long-term two-wheeler insurance work?
This is a relatively new concept in the Indian insurance market. Some insurers offer plans that can extend up to a period of three years. But what do they entail and what are their features?
Before going into the details, let us understand how a standard two wheeler insurance policy works. As a rule, there are two types of two wheeler insurance policies:
- third party two wheeler insurance or a ‘liability only’ policy and
- a comprehensive bike insurance plan or package policy.
The first type covers third party property damage and covers death or bodily injury to third party. Damages to your two wheeler are not covered. In the second type, loss of or damage to your insured vehicle and third-party liability is covered.
A long-term policy differs from a basic two wheeler policy in the premium payment. You must pay the premium for a long-term policy in a single instalment.
At the outset, both policies may seem similar, but, there are differences too. These can be beneficial for you.
Let us look at how long term two wheeler insurance benefits you:
- You do not have to collate documents every year for renewal. Once you take a long-term policy, you are set for at least three years.
- You have peace of mind in case of theft or an accident. The insurance provides coverage for longer than a year.
- Your premium remains the same throughout the policy term, so you can plan your finances better. If you buy yearly insurance, you could be paying a higher premium every year if there are any revisions in rates.
- Say, your current plan does not meet your expectations, you can still port to another insurer without any guilt or hassle.
- Consider beefing up your two-wheeler’s security through some add-ons.