Bike insurance policy is generally valid for one year, and you have to renew it before the expiration date to ensure continuous coverage. If the bike insurance policy lapses and you forget to renew it before the due date, the cost of damages that occurred during that time will not get any coverage from the insurance company.
Also, if you renew the insurance policy after the expiration date, you will have to submit a new application. It will not only increase the cost of the premium, but the insurance company will also check the condition of the bike to determine the maximum coverage. You will not get a no-claim bonus in case you submit a new application. In short, there are tons of drawbacks of not renewing the policy in time.
Points to consider in the insurance renewal
When you renew your bike insurance policy, there are certain factors that you should keep in mind to ensure having the proper coverage. Here is a list of 7 factors to keep in mind before renewing your bike insurance plan.
1. Adequate Coverage
Make sure the policy covers both natural and man-made calamities. Before renewing the policy, you should check what the risks covered by the insurance policy are. Also, it would help if you considered the additional benefits that you can opt for by adding riders or add-ons such as roadside assistance, pillion rider cover and more. Please note that the premium directly depends on the coverage you have opted for. Choose the riders only if you need them.
3. Legal Obligations
As per the law, it is mandatory to have third-party cover to drive a bike in India roads. However, it will not provide you with cover for the damages to your own vehicle. Thus, if you have opted just for the third-party liability cover before, it is time to get a comprehensive bike insurance plan. It will increase the premium cost, but in the long run, you will not regret the decision.
4. Check for discounts
Insurance companies offer various discounts and offer based on the risk measures taken at your end. If you have installed safety accessories on your bike, the company may provide you with a discount. Also, while making the payment, you can check which payment gateway is offering discounts or cash backs. Your credit card may also be offering reward points for making the premium payments.
5. Compare Different Plans
One of the essential things to do while renewing an insurance policy to see if there is any better option available in the market. You can also explore the possibilities for renewing the policy for multiple years as it will reduce the burden of renewing the policy on an annual basis.
6. Correct your information
During the policy period, you might have changed address, number and more. If there is any such change, please make sure to rectify it in the insurance policy as well. Please note that if you have shifted from one city to another, it is essential to inform the insurance company and take the necessary steps. If the shift is permanent, you will have to change the number of the vehicle as well.
7. Do not miss out the renew date
Most of the insurance companies allow you to Renew the Insurance Policy up to 60 days prior to the renew date. They also send you a reminder on your registered email ID and phone number. The chances of missing out the date are very low, but in case you miss it, the insurance companies also provide up to 45 days of the grace period that depends on the insurance company. Please note that during the grace period you will not get cover for any damage. Also, if an accident occurs because of you, the insurance company will not cover the third-party liability that will put you in legal trouble.
- Renew online
You might have bought the policy offline from a trusted agent or from the store owner from where you bought the bike. At the time of renew, check what options are available if you go for the online renewal of the policy. Please note that the insurance companies offer discounts if you renew the policy online because there is no middle-man in the process. The money insurance companies save on the processing are often passed on as a discount to the customers.
Do proper research
When the time comes to renew the bike insurance policy, make sure you do the proper research. Keep the above-mentioned points in mind and see how you can tweak the policy features to get better cover for your bike. As time passes by, the market value of your bike will reduce which will affect the coverage that you can get. Thus, it will be wise if you can opt for Zero Depreciation add-on as it will provide cover based on the original value of the bike.