Everything You Need To Know While Buying Insurance For Old-Bike

Your bike is your most prized possession. Maintaining it comes with expensive bills. Investing in a bike insurance policy is the best way to save yourself from these costly repair bills. Although, it is important to purchase a bike insurance plan that offers you the maximum coverage. If you have an old bike, read this article to understand the major concepts which you should keep in mind when you purchase a bike insurance policy. 

Third-Party And Comprehensive Bike Insurance 

There are mainly two types of standard bike insurance policies available in the Indian market at present. The third-party insurance is designed to financially assist the policyholder to compensate for the loss of the third party in case of any accident. This policy does not offer any sort of protection to the policyholder. On the contrary, comprehensive bike insurance covers both third-party liabilities and the repair costs of the bike in case of any damage resulting from incidents other than collision. Having a third-party bike insurance is compulsory in India. But, a comprehensive bike insurance policy will offer more coverage to the policyholder than a third-party bike insurance. However, the cost of the third-party bike insurance is more affordable than the comprehensive insurance policy.

What Are Add-On Covers? 

Insurance companies offer additional facilities that provide extra financial protection to the policyholder. These facilities are provided in the form of add-on covers or riders. The options for these covers differ from company to company. Some companies offer certain insurance covers only for young bikes. So ensure that you check the covers available for your bike depending on its model, brand and age. The additional covers will add on to the overall cost of your bike insurance premium. So make sure to pick the covers that you think are suitable and valid for your bike. 

What Are The Factors That Determine Your Bike Insurance Premium?

Irrespective of the age of your bike, having a bike insurance is mandatory according to the Indian Motor Vehicle Act. Purchasing bike insurance is generally a hassle-free process. There are many factors that affect the cost of your bike insurance premium. A few major ones are- 

• Age of Your Bike

Your bike is subject to regular wear and tear from the day of purchase. If your bike is older, you will have to pay a lesser premium.  This is mainly because the value of your bike reduces over the period of time owing to depreciation. 

• The Insured Declared Value

The insured declared value of your bike is nothing but the value of your bike in the current market. This is determined by subtracting the depreciation value from the selling price of your bike. The current market value of your bike will determine the cost of your bike insurance premium. 

• Risk Factor 

Insurance companies weigh the risk involved in insuring your bike. If your bike is prone to the risks of getting into accidents because of any modifications, location, or theft, you will likely be paying a higher premium amount. 

Long Term And Short Term Bike Insurance 

Like any other insurance plans, you can opt for a short term insurance plan or a long term one based on your plans for your bike. It is advised to go with a short term insurance plan if you are planning to sell your bike. This way, you do not have to cancel your insurance policy in the middle of the term and you can also change the ownership of the bike and the insurance policy without any hassle. 

Take Away

New or old, your bike is your most valued possession. Therefore, it is always wise to understand how insurance companies function when you are purchasing your bike insurance so that you can avail the best facilities for your bike. Pick the right bike insurance and ride safely. 

Also read

How To Calculate Insurance Premium For Your Old Bike?

Guide to Getting Two Wheeler Insurance for Old Two Wheeler

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.