Bikes are usually considered the best means to commute. Though riding bike can be real fun, it can however be dangerous too. This article is a real saviour to guide you through the benefits of insuring your prized possession.
If you have recently bought a two-wheeler, there is no need for you to get an insurance policy separately as the dealer himself will offer an insurance policy for your bike.
But, how about buying two-wheeler insurance for old vehicles?
In this comprehensive guide, we will discuss the ways you can get two-wheeler insurance for old vehicles and a few points to consider while buying the same. Two-wheeler insurance cover provides protection to all types of two-wheelers such as a motorbike, moped and it covers all uses: commercial, personal and mixed.
We mention here the steps to follow to buy a two-wheeler insurance policy:
Learn about two-wheeler insurance policies: If you are buying a two-wheeler insurance policy for the first time, it is advisable to learn about them before you jump into it. There are nearly 30 non-life insurance companies in India who offer two-wheeler insurance policies. Our website www.coverfox.com will give you all the in-sights about these insurers and what they offer you.
Compare them side by side: As we mentioned there are almost 30 different two-wheeler insurers to choose from, why not compare them before you actually buy two-wheeler insurance for old vehicles?
It is advisable to examine a few policies side-by-side and check what each of them has to offer. This will help you to understand what policy fits the best to your needs and budget. Comparison of various policies will save your time and help you to choose the best insurance policy in terms of premium, coverage, and add-ons.
Go through policy documents: Once you have found a suitable policy for your vehicle, you need to go through the policy documents. Going through the policy document carefully will help you to understand the different clauses of the policy so that there will be no surprise for you at the time of claim.
Apply for two-wheeler insurance: Once you have compared, finalised and gone through the policy documents, the final step would be to apply for the insurance. The internet has made it quite simple to apply for insurance, where you can buy and renew the policy with minimum formalities.
Things you need to know before buying two-wheeler insurance for old vehicles.
It is crucial to know that the terms offered for new bike and an old bike are not the same. Here are a few things to keep in mind while buying two-wheeler insurance for old vehicles.
Insured’s Declared Value (IDV) of your Vehicle
An IDV is nothing but sum insured for your vehicle. In other words, IDV is the amount that the insurance company will pay you if your vehicle is wholly or partially damaged.
IDV is calculated as the selling price minus the registration and insurance cost of the two-wheeler. Since your vehicle is old, the IDV will be considerably lower. Insurance companies usually do the assessment of your vehicle before arriving at an IDV.
How old is your vehicle
Since your vehicle is old, its value will depreciate. Here is the list of depreciation of your vehicle depending upon its age.
|Age of vehicle||Depreciation %|
|More than a year, but less than 2 years||10%|
|More than 2 years, but lea than 3 years||15%|
|More than 3 years, but less than 4 years||25%|
|More than 4 years, but less than 5 years||35%|
|More than 5 years, but less than 10 years||40%|
|More than 10 years||50% or more|
The above list is subject to vary from insurer to insurer. Buying an old vehicle carries some risks. It is advisable to consult an, or you can inspect the bike yourself before making a purchase.
Types of two-wheeler insurance
There are broadly two types of insurance for two-wheeler and are explained below.
- Comprehensive protection: This type of bike insurance covers all the components of third-party insurance. Additionally, it includes damage or injury caused to you and your vehicle which is also known as own damage.
Moreover, you can also purchase add-ons with this insurance. These plans are available for one year and go up to 3 years of policy in a single cost with no yearly renewal process. Long-term plans help you to save money and are available at affordable costs.
- Third-party motor insurance: Third-party insurance covers you, your vehicle and the properties that are injured by your vehicle. Third-party insurance covers injuries that arise only from third-party action. This type of insurance is the most basic type of insurance, and it is mandatory to obtain.
Some factors to consider while applying for two-wheeler insurance for old vehicles.
Let’s quickly dive deep into the factors you can’t afford to miss out while buying two-wheeler insurance plan for old vehicles.
No grace period for policy renewal
It is important to note that third-party two-wheeler insurance for old vehicles as well as for new vehicles, does not offer any grace period for renewal. Say for instance, your two-wheeler insurance for old vehicle is due on March 15, 2019. If you realise this on March 16, 2019 you wouldn’t not be able to renew your insurance plan. In this situation, your two-wheeler insurance policy would be considered as void. However, in case you buy a comprehensive two-wheeler insurance for your old vehicle, you get a grace period of 30 days. Besides, you can renew the policy only after the inspection of your bike. In order to keep your policy active, is crucial to renewing the policy on-time.
Lower premium means lower IDV
The older vehicles are subject to get the lower IDV (Insured Declared Value) as compared to new vehicles. IDV is the maximum sum assured on complete loss or theft of a vehicle which is compensated by the insurance company. Old vehicles have depreciated cost thus, result in lower market value followed by lower IDV.
Check for add-ons
Two-wheeler insurance policies can be customised to meet your individual needs. At a slightly higher premium, you could include benefits like road tax, registration amount. This is how you could add total cover for vehicles up to 15 years old.
You can reduce your two-wheeler insurance premium without lowering your policy cover by avoiding modification to your bike and making small claims.
Numerous factors decide the premium of your two-wheeler insurance for old vehicles. These factors are,
- Your existing NCB
- IDV of your vehicle
- The capacity of your bike’s engine
- The age of your bike
Two-wheeler insurance offers you a sense of security whether your vehicle is new or old. It ensures complete peace of mind from damages occurring due to unfortunate events such as accident or theft. You must get two-wheeler insurance to enjoy every ride knowing you are completely covered.