Owning an old two-wheeler has its charm and practicality, especially if it has served you well over the years. However, as your bike ages, it’s crucial to ensure that it remains protected, and renewing your two-wheeler insurance plays a significant role in this.
This guide will walk you through the essential things you need to consider while renewing insurance for your old two-wheeler.
Why Renewing Two-Wheeler Insurance is Important?
Legal Requirement
In India, having at least third-party insurance is mandatory by law under the Motor Vehicles Act. If you’re caught riding without valid insurance, you could face hefty fines or legal trouble. Therefore, timely renewal ensures you remain compliant with the law.
Protection Against Unexpected Expenses
Insurance offers financial protection against accidents, theft, and damages caused to your bike or a third party. This coverage is essential, especially if you want to avoid spending a fortune on repairs and damages.
Financial Security
Renewing your two-wheeler insurance provides continuous financial security, covering potential losses due to accidents, natural calamities, or theft.
Things to Consider While Renewing Insurance for Old Two-Wheelers
1. Choose the Right Coverage Type
When renewing insurance, it’s important to decide between third-party and comprehensive insurance:
Third-Party Insurance: This is the basic insurance plan required by law. It covers damages caused to a third party but does not cover damages to your bike. This type might be suitable for older bikes that have low market value.
Comprehensive Insurance: This plan offers broader coverage, including damage to your vehicle, theft, and natural calamities. It’s a wise choice if you want complete protection, even for an old two-wheeler, but keep in mind that the premium might be slightly higher.
2. Evaluate the Insured Declared Value (IDV)
The Insured Declared Value (IDV) represents the current market value of your bike and is a crucial factor determining your insurance premium. For older bikes, the IDV tends to be lower, resulting in a reduced premium. However, setting the right IDV is essential because:
- A lower IDV means a lower premium but reduced claim benefits in case of total loss or theft.
- A higher IDV means a higher premium but better compensation.
Ensure the IDV reflects your bike’s actual value to avoid under-insurance or over-insurance.
3. Check for No Claim Bonus (NCB)
The No Claim Bonus (NCB) is a reward for not making any claims during your policy period. It offers a discount on your premium during renewal. Here’s why it’s important:
- The NCB can significantly reduce your renewal premium, making it a valuable benefit.
- You can transfer your NCB when switching to a new insurer.
Even if you are renewing insurance with another company, such as opting for Cholamandalam MS Two Wheeler Insurance, you can still retain your NCB.
4. Consider Add-On Covers
Add-ons enhance the coverage of your basic insurance policy. Some useful add-ons to consider for older two-wheelers include:
Zero Depreciation: It covers the depreciation cost of bike parts during claims.
Roadside Assistance: Provides help in case of breakdowns.
Engine Protection Cover: Useful if your bike’s engine is prone to damage.
While add-ons provide extra protection, they increase the premium. Carefully evaluate which add-ons are necessary for your old two-wheeler.
5. Compare Insurance Policies Online
One of the most effective ways to ensure you get the best deal is to compare different insurance policies online. This approach helps you:
- Find policies with the best coverage options.
- Identify insurers offering the lowest premiums.
- Select the right plan that suits your bike’s age and condition.
Online comparison platforms allow you to quickly review various policies, making it easier to find the perfect match.
6. Check the Claim Settlement Ratio
The claim settlement ratio is the percentage of claims settled by an insurance company against the total claims received. It’s a good indicator of the insurer’s reliability. When renewing insurance, choose a company with a high claim settlement ratio, as it means a higher likelihood of your claims being settled promptly.
7. Read the Policy Terms and Conditions Carefully
Before renewing your insurance, carefully read the policy terms and conditions. Pay special attention to:
Exclusions: Understand what is not covered under your policy.
Deductibles: Know how much you’ll need to pay out of pocket during a claim.
Renewal Terms: Be aware of any changes in coverage or premium upon renewal.
Understanding the policy details helps prevent any unpleasant surprises when filing a claim.
How to Save Money While Renewing Insurance for an Old Two-Wheeler
Avail Discounts: Many insurers offer discounts for long-term policies or if you’re a member of a recognized automobile association.
Opt for Voluntary Deductibles: By agreeing to pay a portion of the claim amount yourself, you can lower your premium.
Renew on Time: Avoid penalties and loss of NCB by renewing your policy before it expires.
Final Thoughts
Renewing insurance for your old two-wheeler is an important task that ensures continuous protection and legal compliance. By considering factors such as the right coverage, IDV, NCB, and claim settlement ratio, you can make an informed decision and choose a policy that offers the best value. Take the time to compare different options, evaluate add-ons, and read the terms carefully to get the most out of your insurance renewal.
FAQs On Renewing Old Two Wheeler Insurance
Can I renew my bike insurance after it expires?
Yes, but it’s advisable to renew before the expiry date to avoid penalties or a break in coverage. Many insurers offer a grace period, but riding without insurance during this period is illegal.
Is it worth getting comprehensive insurance for an old two-wheeler?
If your bike still has significant value or if you rely on it heavily, comprehensive insurance provides better protection. However, for bikes with minimal value, third-party insurance might be more cost-effective.
What happens if I don’t renew my two-wheeler insurance on time?
If you don’t renew on time, your policy will lapse, resulting in loss of NCB benefits and exposing you to legal fines for riding uninsured.
How can I reduce the premium cost while renewing insurance for my old bike?
You can reduce the premium by retaining your NCB, choosing a lower IDV, opting for essential add-ons, and comparing policies to find the best deal.