When you purchase a new bike, the excitement of hitting the open road is unparalleled. However, one crucial aspect often gets overlooked amidst the thrill – selecting a suitable bike insurance plan. Whether you're a seasoned rider or a novice, understanding the finer details of new bike insurance is important. It's not just about fulfilling legal requirements but safeguarding your investment and ensuring peace of mind on every ride.
Many riders buy new two-wheeler insurance without fully grasping the finer details, leading to potential pitfalls and unexpected costs down the road. We, at RenewBuy, aim to demystify the bike insurance purchase process, providing clear and straightforward information of what to look for, what to avoid, and how to choose the most suitable new bike insurance plan tailored to your needs.
What is New Bike Insurance?
New bike insurance is a type of motor insurance policy designed to protect you and your brand-new motorcycle against various risks and damages. Like other insurance plans, it acts as a safety net and provides financial coverage for various unforeseen events.
When you purchase a new bike, you must secure it with an appropriate insurance policy. This ensures compliance with law and offers you peace of mind, knowing you are financially protected. A new bike insurance plan typically covers:
- Protection against damages caused by accidents, whether it's a minor scratch or a major collision
- Theft and vandalism
- Financial protection against damages from natural calamities like floods, earthquakes, and storms
- Costs associated with damages or injuries caused to third parties in an accident.
You can also opt for additional benefits, like roadside assistance, coverage for personal accidents, etc., with new bike insurance. Understanding these aspects can help you choose a plan that best suits your riding habits and ensures you are not caught off guard by unexpected expenses.
What are the Types of New Bike Insurance?
Before you buy a new bike insurance policy, understanding different types of insurance policies available can help you select adequate coverage that best fits your needs and ensures comprehensive protection.
Here are the main types of new bike insurance:
Third-party liability insurance
This is the most basic type of bike insurance and is mandatory by law. It covers damages or injuries caused to a third party in an accident involving your bike. However, it does not cover any damage to your bike or personal injuries. Some of the key features of third-party insurance include:
- Coverage for legal liabilities towards third parties
- Financial assistance for third-party property damage or bodily injuries
Also Read: All About Third-Party Insurance
Comprehensive bike insurance
Comprehensive new bike insurance offers broader coverage compared to third-party liability insurance. It includes both third-party liability and own damage coverage, protecting you from several risks. Some of its key features include:
- Coverage for third-party liabilities
- Protection against damages to your bike due to accidents, theft, vandalism, fire, and natural disasters
- Availability of optional add-ons like roadside assistance, zero depreciation cover, etc.
Standalone Own Damage Insurance
This type of new bike insurance policy covers the damages to your bike but does not include third-party liability coverage. It is suitable for those who already have a third-party liability policy and want to enhance their coverage.
What to Consider While Buying a New Bike Insurance Policy?
Choosing the right bike insurance policy helps ensure comprehensive protection and peace of mind. Here are some key factors to consider while buying a new bike insurance policy:
Coverage options
Evaluate the coverage options provided by the available bike insurance policies. Ensure that the policy you select includes essential coverage like third-party liability, own damage, and personal accident cover.
Premium
Compare the premium rates of different bike insurance policies. While it may be tempting to go for the cheapest plan, ensure that the policy provides adequate coverage. A balance between cost and coverage is vital for optimal protection.
Available Add-On Covers
Consider the availability of add-on covers that can enhance your policy. Popular add-ons include zero depreciation cover, roadside assistance, engine protection, and consumables cover.
Insurer's Reputation
Research the insurance company's reputation and customer reviews to gauge their reliability and customer service quality. A reputable insurer ensures a smooth and hassle-free claim process.
Policy Exclusions
Understand the exclusions of new two wheeler insurance policies to avoid surprises during claim settlement. Common exclusions may include damages due to illegal activities, riding under the influence of alcohol, or not possessing a valid license. Being aware of these exclusions helps manage expectations.
Cashless Network Garages
Ensure the insurance provider has a wide network of garages supporting cashless claims. This will reduce out-of-pocket expenses as the insurer settles the bill with the garage.
Deductibles
Understand the deductible you need to pay in case of a claim. Opting for a higher deductible can lower the premium. However, you need to ensure you can afford to pay the selected deductible at the time of claim.
Policy Renewal Process
Check the policy renewal process to ensure continuous coverage without any lapses. Most insurers now offer online renewal options for added convenience.
Customer Support
Evaluate the insurer's customer support services. Prompt and efficient customer support helps resolve queries, assists during claim processes, and enhances your overall experience.
What are the Benefits of Buying New Bike Insurance Online?
Purchasing new bike insurance online can offer numerous advantages, including the following:
- You can buy the insurance policy from the comfort of your home anytime without needing to visit an office or meet an agent.
- You will receive your policy document via email, eliminating paperwork.
- It is easy to compare multiple policies, coverage options, and premiums from different insurers to make an informed decision.
- Online purchase of new bike insurance often comes at lower premiums due to reduced administrative costs.
- You will get access to detailed information about coverage, exclusions, and terms and conditions easily.
Which Add-ons Can You Include With a New Two-Wheeler Insurance Policy?
You can add one or more add-ons to your new bike insurance policy from the following list based on your needs and preferences:
| Add-on | Benefit | Suitable For |
|---|---|---|
| Zero Depreciation Cover | Ensures full claim amount without deducting depreciation value of bike parts | New bike owners and those looking to maximize claim payouts |
| Roadside Assistance | Provides help in case of breakdowns or emergencies | Riders who travel long distances or frequently use their bike |
| Engine Protection Cover | Covers damages to the engine due to water ingression or oil leakage | Bikes frequently used in areas prone to flooding or rough terrain |
| Consumables Cover | Covers the cost of consumables used during repairs | Those looking to reduce out-of-pocket expenses during repairs |
| Personal Accident Cover for Pillion Rider | Provides financial compensation for pillion rider in case of accident | Riders who often have a passenger on their bike |
| Return to Invoice Cover | Reimburses full invoice value of bike in case of total loss or theft | New bike owners who want complete financial protection |
| Accessories Cover | Covers the cost of repairing or replacing non-factory-fitted accessories | Riders who have invested in high-value accessories |
| Loss of Personal Belongings | Compensation for loss or theft of personal belongings | Riders who carry valuable personal items while riding |
| Key Replacement Cover | Covers the cost of replacing lost or stolen keys | Riders concerned about high cost of key and lock replacement |
| Tyre Protection Cover | Covers the cost of repairing or replacing damaged tyres | Riders frequently using bikes on rough or challenging terrains |
**The availability of bike insurance add-ons may vary from one insurer to another.
How to Buy New Bike Insurance?
You can purchase new bike insurance in three primary ways:
- Online via the official insurer’s website
- Online via insurance aggregators
- Offline via insurance company’s agents or by visiting their local offices
Let’s get into the steps to buy the policy in each way.
Steps to Buy Bike Insurance Online From an Insurer or Aggregator
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Visit the official website of the insurance companies offering bike insurance or an insurance aggregator portal.
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Select the type of bike insurance you need, such as third-party liability, comprehensive, or standalone own damage.
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Provide details about your bike, including the make, model, year of manufacture, registration number, and any modifications.
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Explore available add-ons if required.
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Use the insurer's premium calculator tool to estimate the premium payable based on your selected coverage and add-ons (if any).
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Enter your personal information, including name, address, contact details, and identification documents as required.
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Double-check all the details you've entered to ensure accuracy.
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Choose your preferred payment method to complete the payment process securely on the insurer's website.
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Once the payment is confirmed, you'll receive the policy document instantly via email.
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Download/save the document for future reference.
Steps to Buy Bike Insurance Offline
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Research different insurance companies and select a few that offer new bike insurance policies.
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Locate the nearest branch office of the selected insurance companies you are interested in or contact an authorized insurance agent(s).
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Meet with a representative or agent to discuss your insurance needs, including the type of coverage (third-party, comprehensive, or standalone own damage) and any specific add-ons you require.
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Share detailed information about your bike, including make, model, year of manufacture, registration number, and any modifications.
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The representatives/agents will present you with new two-wheeler insurance policy options, explaining the coverage, exclusions, and premium costs for each.
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Based on the information provided, select the policy that best meets your requirements and offers the desired coverage and benefits.
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Complete the necessary application forms provided by the chosen insurance company, including your personal details, bike information, and preferred coverage options.
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Provide required documents, such as proof of identity, address, bike registration papers, etc.
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Pay the insurance premium using the accepted methods as directed by the insurer or agent.
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After processing your application and payment, the insurance company will issue the policy document. You may receive it immediately in person or have it mailed to your address.
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Carefully review the policy document to ensure all details are accurate and match the coverage discussed.