Riding a bike on Indian roads without having a valid insurance policy is illegal as well as unsafe. However, when people purchase a two-wheeler insurance policy, they tend to make one common mistake that is buying the cheapest policy available. Instead, your main aim while looking for an insurance policy should be to make the most of the premium paid. There is no value to cheap policies and you only understand this when you file an insurance claim.
However, that’s not the only mistake made by people while buying a two wheeler insurance policy. Take a look at 5 such mistakes commonly made and ways to avoid them:
- Providing inaccurate or false details
Whether you’re buying the basic two-wheeler insurance third party or a comprehensive policy you must submit accurate details for a valid two-wheeler insurance renewal. Make sure to select the correct insured name, and provide correct personal details. In case you forget any of the crucial information, it will be considered as an attempt to commit insurance fraud. Mention the name of the nominee as well as correct hypothecation details. All of this information is important to have an error-free policy.
- Forgetting to renew the insurance policy
A No Claim Bonus (NCB) is a reward that you receive in the form of a concession on your renewal premium, for not making any claims in the policy year. Because you have been driving safely, the insurer will ask you to pay a lower premium amount during insurance renewal. However, if you don’t renew your two-wheeler insurance policy within 30 days from the date of expiry of the existing policy, the NCB will lapse. Hence, keep in mind the date of policy renewal, and do not miss out on the benefit of NCB.
- Selecting the wrong IDV
The Insured Declared Value (IDV) is basically the maximum sum assured that you receive from your insurer. This is the amount you will receive in case of theft or total loss. If the IDV is greater, the premium will be high too, and vice versa. Many people think that it is better to declare an IDV lower than the market value. Most of the two-wheeler owners think that lower the IDV, more money will be saved on the annual premium. However, lower the IDV, lower would be the compensation you receive in case of total loss or theft so make your choice wisely.
- Selecting improper deductible
An insurance deductible is the amount that you are supposed to pay in case of a claim. You can opt for a voluntary deductible that is a limit chosen by you and to be paid as a part of the claim from your pocket. Always choose a deductible as per your affordability. If you select a higher amount of voluntary deductible, it will lower your premium cost.
- Purchasing without doing research
Two wheeler insurance comes in two variants, one is the mandatory third party insurance for bikes& the other one is comprehensive insurance. Just as you compare other products while buying, you must compare the insurance covers while purchasing for your two-wheeler as well. If you don’t do so, you might end up pouring all your money for nothing. Most importantly, check for the customer reviews about the policies they’ve chosen, along with the insurance company’s reputation.
The above-mentioned errors are made by most of the people out there. Now that you know how to avoid them, make sure to not let go of the benefits that your insurance coverage is capable of providing. Make proper use of the two wheeler insurance premium calculator available online, so you can make alterations in your policy as per your needs& budget.