Two-wheeler insurance is essential for any bike owner in India, providing financial protection against damage or theft. With several two-wheeler insurance options available in the market; it can be confusing to choose the right one. In this article, we’ll explore the two main types of two-wheeler insurance policies, third-party insurance, and comprehensive insurance, along with some additional coverage options you may want to consider.
First, let’s define the two types of two-wheeler insurance. Third-party bike insurance is the minimum legal requirement in India, as per the Motor Vehicles Act, 1988. It covers you for any damages caused to third-party property or injuries caused to third-party individuals. Comprehensive bike insurance, on the other hand, covers third-party damages as well as any damage to your own vehicle or injuries suffered by you or your pillion rider in the event of an accident.
Now, let’s take a closer look at each type of insurance.
Third-party bike insurance
As mentioned, third-party bike insurance is the minimum legal requirement in India. It covers damages and injuries caused to third-party individuals or property due to an accident involving your two-wheeler.
This type of insurance is relatively inexpensive compared to comprehensive bike insurance, making it a good option for people who are on a tight budget or have a bike that is not worth a lot of money. It also gives you legal protection against any third-party liabilities that may arise due to an accident involving your bike.
However, third-party bike insurance does not cover any damage to your own vehicle or injuries suffered by you or your pillion rider. If your two-wheeler is stolen or damaged due to natural calamities like flooding or earthquakes, you would not be covered under third-party bike insurance.
Comprehensive bike insurance
Comprehensive bike insurance gives you coverage for third-party damages as well as your own vehicle. This type of insurance is more expensive than third-party bike insurance, but it provides greater protection against a wider range of potential threats.
Comprehensive bike insurance covers damages to your two-wheeler due to accidents, fire, theft, natural calamities, and man-made disasters like riots or strikes. It also covers injuries suffered by you or your pillion rider in the event of an accident.
With comprehensive bike insurance, you can also opt for add-ons like zero depreciation cover, engine protect cover, pillion rider cover, and roadside assistance.
Factors that affect the cost of two-wheeler insurance
Now that you know the difference between third-party bike insurance and comprehensive bike insurance, let’s discuss the factors that influence the cost of two-wheeler insurance.
Age of the vehicle: As your two-wheeler ages, its value decreases, which means that you will likely pay less for insurance. However, if your vehicle is very old, you may have trouble finding an insurer who is willing to provide coverage.
Engine capacity: The larger the engine of your two-wheeler, the higher the insurance premium. This is because larger engines are associated with higher speeds and greater risk of accidents.
Geographical location: If you live in an area with high traffic congestion or crime rates, you may pay a higher premium for two-wheeler insurance.
No Claim Bonus: If you have not made any claims in the previous year, you are eligible for a discount on your insurance premium. This discount can be as high as 50% if you have not made any claims for five consecutive years.
Driving record: If you have a history of accidents or traffic violations, you may pay a higher premium for two-wheeler insurance.
Type of vehicle: The make and model of your two-wheeler can also affect your insurance premium. High-end or exotic bikes may cost more to insure because they are more expensive to repair or replace in the event of an accident.
Which is the best two-wheeler insurance if I have an old bike?
If you have an old bike, you may want to consider third-party two-wheeler insurance as the best option. Third-party insurance is a mandatory policy as per the Motor Vehicles Act and provides coverage for any damages made to third-party property or injuries caused to third-party individuals in case of an accident. It is an affordable option for bike owners and fits the budget of those who cannot afford comprehensive insurance.
Comprehensive two-wheeler insurance, on the other hand, may not be beneficial for an old bike as the premium may be high due to the age of the bike and its depreciated value. In case of an accident or damage, the cost of repairs may not be economically feasible as the bike value may be lower than the repairs’ costs. However, you can opt for additional coverage like zero depreciation cover, which can provide full-value coverage for any damaged parts that require replacement.
Which is the best two-wheeler insurance if I have a new bike?
If you have a new bike, it’s a good idea to opt for a comprehensive two-wheeler insurance policy. This insurance type provides complete coverage for damages to your bike and injuries caused to you or any third party. It also covers natural disasters, theft, and personal accidents. Comprehensive two-wheeler insurance also has options for add-on coverage like zero depreciation cover, engine protector, personal accident cover, and many more.
While third-party two-wheeler insurance is mandatory and affordable, it may not be ideal for a new bike as it does not provide coverage for damages to your bike. A comprehensive policy can protect your investment and ensure that you don’t have to pay for expensive repairs in the event of an accident or theft.
When looking for the best two-wheeler insurance for a new bike, it’s important to compare policies, check for add-on coverage options, understand the inclusions and exclusions of the policy, and select the right insurance provider for your needs. This can help you get comprehensive coverage and peace of mind while ensuring that you’re not overpaying for your insurance policy.
Two-wheeler insurance is an important investment for anyone who rides a motorcycle, scooter, or moped. While third party bike insurance is the minimum legal requirement, comprehensive bike insurance provides greater protection against a wider range of potential threats.
When choosing an insurance policy, it’s important to consider factors like the age and engine capacity of your vehicle, your geographical location, and your driving record. You should also compare policies and premiums from different insurers to find the best deal.
A good two-wheeler insurance policy can provide peace of mind and financial protection in the event of an accident. Secure your ride with the right insurance coverage today.