Two-wheeler insurance policies are a lot like life jackets. They offer you protection in case of an accident. They can help you recover financially if you're ever in a situation where you need it. You have to renew your bike insurance policy to ensure it's up to date. You could violate the law if you don't renew your policy on time.
Two Types of Bike insurance
There are 2 main types of bike insurance - short-term and long-term. Both offer protection in case of an accident, but which is the best option for you? Let's take a view at the major differences between the two types of insurance:
- Short-term bike insurance is ideal if you only need cover for a few months. It's generally less expensive than long-term insurance, but you need to renew it more often.
- Long-term bike insurance offers protection for an extended period, usually more than 12 months. It costs more than short-term insurance, but you won't need to renew it as often.
Differences
Policy Renewal:
The policy renewal date is important when considering different policy options. Long-term policies have a renewal date of once every three to five years, while short-term policies need to be renewed annually. This can be helpful to know in advance so you can budget accordingly and not have any lapse in coverage.
Flexibility:
Bike insurance can be a pain to keep up with, especially if you like to switch things up often or take discounts or additional benefits. That's where short-term two-wheeler insurance policies come in - they give you the option to revisit or modify your policy yearly.
There are many add-ons available with short-term policies like NCB protection, zero- dep cover, and more. Short-term policies are more flexible and provide more benefits than long-term policies. If you are looking for additional add-ons, then short-term policies would be a more suitable option.
Cost-effectiveness:
For two main reasons, long-term policies are more cost-effective than short-term policies. By signing up for a long-term policy, you avoid the yearly premium increase set by the (IRDAI). Additionally, most insurance companies offer markdowns on the insurance premiums charged to long-term policyholders.
So if you're looking for an affordable solution, long-term insurance is the way. However, short-term policies may be more expensive year to year, but if you prepare your finances reasonably, you can avoid price hikes.
Add-ons:
You can add extra features to your bike insurance policy, such as zero depreciation or NCB protection. This means you can streamline your policy to suit your needs better and change it yearly if necessary. You will be getting better add-ons with long-term plans.
NCB Discount:
You can choose a short-term or long-term policy when you insure your bike. A long-term policy will offer you a higher percentage of NCB discount, but the time frame for not raising any claim is shorter. Even with a short-term policy, you nonetheless get the advantage of NCB; it's just that the discount is lower than what you would get with a long-term policy.
OD Rates:
While you as a bike insurance policyholder (long-term) enjoy benefits and discounts from your insurer, those same insurer offers no such perks or breaks on premiums for those with short-term bike insurance. Quite the opposite is true - short-term policyholders often have to pay more out of pocket.
New vs. Old Vehicle:
When it comes down to insuring your vehicle, you must consider a few key things. Primarily, how long do you foresee needing coverage? A short-term policy might be best if you own an older vehicle that may only last a few more years. On the other hand, if you just bought a new/luxury bike that will last much longer, then a long-term policy is what you need.
Read more - Why Choosing a Long-term Bike Insurance Policy is a Good Deal?
Long-Term Insurance Benefits
There are several benefits of opting for a long-term insurance policy instead of a shorter-term one. For starters, you'll comply with the IRDAI's directive to purchase such a policy if you wish to avoid the hassle of renewing your insurance coverage every year. Opting for a long-term policy also gives you a discount on the overall premium payable.
Suppose you're looking for a long-term solution for insuring your bike. In that case, long-term bike insurance has several benefits that may be of interest to you. The process is hassle-free, and you'll receive a discounted premium. In addition, the policy doesn't expire for 3 years, so you don't have to worry about renewing it yearly. Plus, if you let the policy lapse, your no-claims bonus won't be affected. Lastly, the premium amount is fixed for three years.
Read more - Top 5 Benefits of Purchasing a Long-Term Bike Insurance Policy
