Two Wheeler Insurance Everything You Need to Know

Last Updated on May 21, 2021 by MoneyVisual

Bike or Two Wheeler Insurance: Two-wheeler insurance plan is a general insurance product that ensures iron-clad protection for a two-wheeler and its owner/driver against unfortunate events including road mishaps, accidents or natural disasters that may require an unforeseen expense for the owner.

Two-wheeler insurance policy ease out the financial burden that may arise out of situations involving damages or loss occurred to a third-party or its property or the owner/driver or the insured vehicle.

Importance of Two-Wheeler Insurance

As per the Motor Vehicle Act in India, a two-wheeler insurance plan is mandatory for anyone riding a motor vehicle. Two-wheeler insurance plans do not only provide coverage against third–party liability, but they also offer comprehensive coverage to the owner/driver of the two-wheeler.

These plans cover medical expenses incurred due to the hospitalization of the owner/driver and the cost of repair incurred due to damages that occurred to their own vehicle.

Benefits of Two-wheeler Insurance

There are umpteen benefits of two-wheeler insurance plans. Here we are listing just 5 of the top benefits of two-wheeler insurance plans for policyholders.

Check them out:

  1. Cashless Garage Services: Almost all two-wheeler insurance plans offer the facility of cashless repair to the insured vehicle at network garages, in the event of an accident or damages caused to the insured vehicle.
  2. Roadside Assistance: A large number of bike insurance plans provide the options of roadside assistance in case the vehicle breaks down.
  3. Towing Facility: Popular two-wheeler or bike insurance plans also offer the free towing facility, in case the two-wheeler’s engine stops working or breaks down.
  4. Add-on Coverage: All popular two-wheeler insurance plans provide add-on coverage in order to provide policyholders with additional benefits and perks.
  5. Online Services: Almost all two-wheeler insurance plans can be easily renewed or purchased online.

Types of Two-Wheeler Insurance

Basically, two-wheeler insurance plans are categorized into two types and each of these two types offers a different set of benefits and perks to the policyholders.

  • Third-Party Insurance: Also called limited liability insurance, this plan covers the insured and the owner/ driver of the two-wheeler against third-party liabilities arising out of an accident, which causes damage or loss to the third party or its property.
  • Comprehensive Two-Wheeler Insurance: Also called package policies, this two-wheeler insurance offers comprehensive coverage to the insured two-wheeler vehicle. Apart from coverage for third party liability, this plan also gives coverage to the expenses incurred due to an injury or the death of the owner/ driver and damage occurred to the insured bike due to an accident.

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Key Factors to Consider before Buying Two-Wheeler Insurance Plans

The sheer multiplicity of two-wheeler insurance service providers and plans in the market can baffle even the most seasoned of investors. Therefore, it makes sense to consider a few vital factors when investing in two-wheeler insurance plans.

Here are 4 such factors that one must carefully consider before buying two-wheeler insurance plans in India:

  1. Coverage: This is one of the major factors you should consider when buying two-wheeler insurance plans. Look out for plans that offer comprehensive coverage against third-party liability, personal accident, and own vehicle damage. Make sure that you aren’t compromising on any of this coverage to ensure complete peace of mind.
  2. Benefits: Look out for the number of cashless garages provided by the insurer when buying two-wheeler insurance policies. Remember, an emergency may strike anytime and a two-wheeler insurance plan with a considerably large number of network garages comes in handy in such situations. Also, be heedful to check if your policy provides the towing facility, in case the insured vehicle meets with a breakdown.
  3. Online Services: Be vigilant of buying a two-wheeler insurance plan from an insurer that provides online services. This will help you renew your existing insurance plan easily and without any hassles from anywhere, anytime.
  4. Premium: Premium is another key factor that you must consider when buying a two-wheeler insurance plan. It is fairly easier to get premium quotes online. You can easily calculate the premium amount using premium calculator tools online.