Having a vehicle is an investment that requires long-term protection and care. If you have just bought your first motorcycle, it is crucial to ensure that your asset is protected at all times. For such assurance, bike insurance is considered to be the perfect solution.

While third-party plans are great if you’re looking for cheap bike insurance, comprehensive motorcycle insurance plans are often better suited for those who want extended coverage.

If you are planning to buy a long-term two-wheeler insurance policy, then it is essential that you first get complete information.

So, let’s get started by understanding comprehensive bike insurance and the key considerations for purchasing comprehensive long-term 2-wheeler insurance.

 What Does Bike Insurance Mean? 

Bike insurance is a type of vehicle insurance specifically designed to cover the policyholder against financial losses caused due to road accidents and other on-road events.

There are three categories of bike insurance, each of which has its purpose. Below is a brief discussion about them:

1. Third-Party Liability: This insurance for bikes provides compensation for expenses paid for any damage or loss that the other party suffers in an accident due to the insured bike.
2. Standalone Own-Damage: This type of bike insurance covers expenses incurred only for repairing damages caused to the policyholder’s bike.
3. Comprehensive Two-Wheeler Insurance: It is a bike insurance policy that combines the benefits of both third-party and standalone own-damage bike insurance.

Generally, policies last a year and need to be renewed annually. However, insurers do provide long-term two-wheeler insurance policies. In fact, it is mandated for new bike owners to purchase a 5-year bike insurance policy that comes bundled with third-party insurance (for 5 years) and own damage insurance (for 1 year).

You can buy long-term two-wheeler insurance online from online insurers like Tata AIG or from the dealer upon buying your new bike. 

 Factors to Consider When Buying a Long-Term Comprehensive Two-Wheeler Insurance Policy 

Buying a bike insurance plan demands the utmost attention, as its inclusions and exclusions play a crucial role in determining the scope of the policy. The more comprehensive your policy, the more coverage you will get- this is the motto of every insurance policy.

Similar to the purchase of any other insurance, there are multiple factors that you should consider when buying a long-term bike insurance policy.

Below is a list of all those things that will help you make the right choice.

 Coverage 

A comprehensive bike insurance plan covers both the policyholder and the third party. It is important to check whether your policy provides sufficient financial backup, as this will help you understand what situations are and are not covered under your policy.

Your comprehensive long-term two-wheeler insurance must provide cover for damage you and the third party have faced because of the accident.

 Insured Declared Value (IDV) 

The IDV in bike insurance is the amount that you will get if your bike has been stolen or if it has been damaged completely.

Insured Declared Value is another term for your bike’s market value. When buying comprehensive bike insurance, ensure that the decided IDV matches your bike’s current price.

 A High Claim Settlement Ratio 

The insurance company you have selected should have a good settlement claim ratio, as the higher the claim ratio is, the easier it will be for you to get compensation in case something happens.

Various insurers, like Tata AIG, offer a claim-settlement ratio of 99%. So, when deciding on an insurance company, remember to check the claim settlement ratios of different insurers.

 Premium Cost 

The premium charged for your comprehensive long-term two-wheeler insurance should justify the coverage provided; i.e., you should not pay more than the average premium amount for a policy that offers basic coverage.

So, in order to make the right purchase, you must compare the premiums of different bike insurance providers online and then make an informed decision.

 Summary 

Knowing what factors to consider before buying long-term 2-wheeler insurance will help you choose a policy that is not only better suited to your insurance needs but also affordable. Moreover, it is also necessary to ensure that you have chosen the right insurer for purchasing bike insurance.

Therefore, it is suggested that every bike owner should opt for a comprehensive bike insurance policy from an insurance company with a good reputation.