Suppose you plan to purchase a two-wheeler insurance policy for yourself, great decision! It’s always good to insure your vehicle, whether a scooter or a motorbike. Moreover, it is also mandatory to have two-wheeler insurance by the law. However, to make the best of this decision, you must know the common mistakes and potholes to avoid buying two-wheeler insurance. Here’s what you should keep in mind-
Not researching enough
This is one of the most common mistakes people make while buying third-party bike insurance. Good research is essential when purchasing any insurance policy for your two-wheeler. If you don’t compare policies and collect information, you don’t want to end up paying more than you should, and neither should you miss out on a good approach if it is higher in cost than what you expected. Research well and compare various policies before choosing one.
Compromising on financial benefits
Another common pothole people fall into while getting a third-party insurance policy for a bike is going for a policy that costs less and compromises the benefits. While a low-cost insurance policy will save you some money in the immediate future, it may not be a wise choice in the long run if the benefits aren’t apt. The key is balance- choosing a low-cost insurance policy that provides you with the financial help you need; many insurers offer such win-win insurance policies for two-wheelers.
Not using the NCB
If you have a two-wheeler insurance policy and don’t make an insurance claim during the tenure, you are rewarded with NCB or Non-Claim Bonus. With this reward, you get a discount on the premium upon renewal. Don’t make the mistake of not utilizing the NCB if you are eligible for it when buying a new insurance policy from a new company or renewing it. Take advantage of this bonus and get a revised premium.
Overlooking the right IDV
Insured Declared Value or IDV is the maximum sum insured offered to you by the insurer for your vehicle. In other words, this is the amount of money you will get if your car is involved in total loss or theft. A higher IDV also costs more, and vice versa, but you need to make the right decision to avail this benefit. Many people tend to overlook obtaining the right IDV. Many people tend to forget to get the right IDV.
Entering incorrect personal information
To make a valid insurance claim or renewal, entering correct personal information, such as name, registration certificate (RC), nominee, vehicle number, and the last insurance policy’s details, is crucial. Even if it is a simple error, insurers can consider incorrect personal information as fraud, and you can lose your financial coverage, so be careful.
I am not renewing the policy on time.
This mistake will cost you more than just some money because going around with expired two-wheeler insurance is an offense under the law. It would help if you renewed your bike insurance policy timely. If anything takes more than 30 days, you will lose out on the NCB. So pay your premiums on time and restore them responsibly. Here are some common but avoidable mistakes you can take care of when purchasing a two-wheeler insurance policy. Make sure to avoid these blunders to make the most out of your insurance for a two-wheeler.