Insurance is a necessary expense that can lower your financial burden at the time of a crisis. In India, it is mandatory by law to have an insurance for your vehicle. Due to the advent of technology, you can renew your two-wheeler insurance in 2018 effortlessly. Most of the insurance companies will provide an option on their website to pay insurance premium instantly.
The advantages of renewing your comprehensive two-wheeler insurance on time or in advance include:
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a) Safety Net
If you meet with an accident, the comprehensive insurance policy will cover all the damages caused to the vehicle and your medical expenses as well.
b) Protection Against Natural Calamities
A natural calamity cannot be predicted. Similarly, you cannot predict if the natural calamity will affect your two-wheeler. If this happens, the insurance company will pay for the damages caused to your vehicle.
c) Protection Against Man-made Calamities
If there is a burglary at your residence, office, or parking lot, and your two-wheeler is stolen, the insurance company will provide compensation for the same.
Tips on Renewal of Your Insurance Plan
At the time of purchasing your vehicle, you might go with the comprehensive two-wheeler insurance plan suggested by the salesman at the two-wheeler showroom. Due to this, you might end up paying an exorbitant insurance premium which consists of various add-ons that you wouldn’t require. There are a few ways in which you can save on your comprehensive two wheeler insurance premium. These are:
a) Comparison
It is necessary to compare the various comprehensive two-wheeler insurance policies available in the market before you renew your two-wheeler insurance this year. A comprehensive comparison of all features offered by different insurance companies is available on Coverfox.com. You can select the insurance policy that suits you the most after the comparison.
b) No Claim Bonus (NCB)
This is a vital bonus you can obtain while renewing your insurance if you didn’t file a claim in the previous insured year or consecutive years. In most insurance policies, the percentage of NCB increases each year. You can get a discount of 20% to 50% based on the insurance company’s policies.
c) Add-on
Every insurance company provides add-ons with its comprehensive insurance policies. These include zero depreciation cover, key replacement, personal accident cover, accessories cover, consumables cover, etc. Choose the add-on which you think is absolutely necessary and opt out of the rest.
d) Insured Declared Value (IDV)
In case of a burglary or a major accident, the insurance company will compensate for your losses based on the current market value of the two-wheeler. This value is known as IDV (Insured Declared Value). You need to be aware of the IDV when you renew your two-wheeler insurance in India. It is advisable to opt for the insurance policy that provides the highest IDV if the remaining features of that insurance policy are also feasible for you.
Disadvantages of Not Renewing Your Insurance Cover
Although there are many advantages of renewing your two wheeler insurance on time, there are various disadvantages of not doing so as well. These are:
a) Late Fee
Most insurance companies charge a late fee if you do not pay your insurance premium on time. This fee is an unnecessary expense which can be avoided if you pay your insurance premium before the deadline.
b) Legal Aspects
In India, it is compulsory to have insurance for your two-wheeler. If you have an expired insurance, you will end up paying an exorbitant fine when the traffic cops conduct a routine check.
c) Third Party Liability
When you meet with an accident and your insurance policy is not updated, you’re liable to pay for the damages caused to the other party involved in the accident. You will have to spend your hard earned savings to settle such cases.
A Skillful Rider
Owning a two-wheeler is not sufficient. You need to abide by all the traffic rules and ensure that your vehicle has valid insurance. This way, in case of a mishap, all financial expenses will be taken care of. You can also opt for an add-on which ensures only original two-wheeler parts are replaced in such incidents. Make a smart decision and follow the given tips to ensure that you get the best available deal when you renew your two-wheeler insurance.