Why Two-Wheeler Insurance Renewal is Just as Important as Purchasing a New Policy?
As two-wheeler insurance is mandatory in India, you must renew the plan on time to keep it active and ride your bike legally on the road. In this article, we will discuss the reasons why two wheeler insurance renewal is as crucial as purchasing a new policy.
New Delhi: In India, all vehicle insurance policies come with an expiry date, irrespective of whether it is a third-party or comprehensive plan for a bike or car. As two-wheeler insurance is mandatory in India, you must renew the plan on time to keep it active and ride your bike legally on the road. In this article, we will discuss the reasons why two wheeler insurance renewal is as crucial as purchasing a new policy.
Why is it Crucial to Renew Two-Wheeler Insurance?
There are several reasons why you must renew your two-wheeler insurance on time:
- Abiding by Motor Laws
Renewing your two-wheeler insurance is more than a formality. You must follow this legal obligation to ride legally in India. If you ride your two-wheeler without valid third-party insurance, it can lead to fines and imprisonment. Hence, it becomes crucial for you to renew your two-wheeler insurance on time to abide by the laws and stay protected under your selected coverage.
- Financial Protection
When you renew your two-wheeler insurance on time, you safeguard your finances from losses arising from accidents, theft, third-party liabilities, etc. In addition, if you opt for comprehensive two-wheeler insurance, you can stay financially protected, as it offers you extended coverage when required.
- No Break-in Policy Disadvantage
Renewing your two-wheeler insurance before expiry is crucial to label it as a break-in policy. However, the break-in policy may differ from one insurance provider to another, where the insurer will offer you a considerable period to renew your existing plan. If you delay the renewal or lapse it, you may have to pay a higher insurance premium, and it can lead to vehicle inspection.
- Utilise No Claim Bonus
The No Claim Bonus (NCB) is a valuable discount from the insurance company if you have not made any claims during the existing policy period. If you fail to renew your two-wheeler insurance within the grace period, which is 90 days, the NCB will become zero. Nevertheless, if you renew your comprehensive or third-party insurance on time, you can get up to 50% discount on the premium amount during renewal.
- Coverage Remains Intact
When you renew your two-wheeler insurance on time, you will receive continuous coverage from the insurer against several unforeseen scenarios. If you have a comprehensive plan, you will get financial coverage for third-party liabilities and own damage caused. In addition, you can opt for personal accident cover to receive Rs. 15 lakhs for permanent disability or death. Hence, you must complete the renewal process on time to stay financially and legally protected.
What are the Factors to Consider When Renewing Two-Wheeler Insurance?
When renewing your two-wheeler insurance, you must consider several factors to ensure better coverage. The following are the things you must consider before renewing your existing policy:
- Type of Coverage
One of the main points you must focus on when you renew your existing plan is whether you want to continue with the third-party liability-only policy. You can opt for comprehensive coverage to receive financial protection against third-party liability and own damage. In addition, the same applies when you want to plan to renew your four wheeler insurance.
- Insured Declared Value
It is the current value of your two-wheeler that determines the maximum compensation you will receive if your vehicle is stolen or totalled. Moreover, as vehicle depreciation, the IDV lowers with each renewal, affecting your premium and claim amounts. Hence, you must choose an IDV that balances adequate coverage and affordability.
- Add-On Covers
You can consider including add-ons to enhance the coverage when renewing your existing plan. For instance, you can include personal accident cover, zero depreciation cover, key loss cover, roadside assistance, etc. In addition, these add-ons may increase the premium amount but offer comprehensive coverage that may be beneficial in certain situations.
- Deductibles
Opting for a higher deductible lowers your premium amount but increases the out-of-pocket costs when filing a claim. You must strike a balance between the deductible, as it reduces your ongoing premium but may increase your premium if you have a higher deductible. Hence, you must choose a deductible that aligns with your budget and insurance requirements.
- Network Garages
Ensure your insurance company has a broad network of cashless garages, allowing you to repair your two-wheeler without upfront payments. It simplifies the claim process, as the insurer directly pays on your behalf to settle the bill with the garage. In addition, it will help you during emergencies, offering you a hassle-free experience and quicker resolution during vehicle repairs.
Final Words
Henceforth, renewing your two-wheeler insurance is essential to maintain continuous financial protection and other coverage benefits. It safeguards against unexpected costs, keeps you legally covered, and offers opportunities to adjust coverage according to your insurance requirements. Therefore, timely renewal is as crucial as buying new insurance for your two-wheeler.
