Two-wheeler is often favored in India over cars because of the convenience. According to Indian law, you cannot drive a bike without a minimum third-party liability cover. However, it is suggested that you should get a comprehensive plan to ensure you get cover for the damage to your own vehicle as well. Bike insurance plans provide financial assistance in case of an unforeseen event. There are some misconceptions associated with two-wheeler insurance that may confuse the buyers. Let’s discuss some of the most common myths and debunk them.
1. You only need third-party liability cover
It is generally suggested that you only need a third-party cover. Partly it is a true fact, but there is a catch to it. Third-party liability cover protects from legal and financial liability if an accident happens because of your vehicle. It will not provide cover for the damage that happens to your vehicle in an accident. That means if you only have third-party liability cover and not the Comprehensive Plan, you will end up paying the entire cost of damage because of accident or theft from your own pocket.
2. You can use two-wheeler for personal and commercial use under the same insurance plan
There is another misconception that if you have a bike insurance plan, it will provide cover even if you are using it for commercial purposes. It is not true at all and in case you meet with an accident while using your bike for commercial purposes, the insurance company has the right to reject the claim. For commercial vehicles, insurance companies provide a wide array of insurance plans. For such plans, the premium cost is always on the higher side.
3. You cannot change the insurer
One of the most common myths that often originate from insurance agents is that you cannot change the insurance company once you have bought a bike insurance plan. The reality is, you can change the insurance company at the time of renewing no matter how many years have passed. In general, bike insurance plans last for one or two years. Once the renew time comes, you can check and compare the insurance plans available and change the insurance company if you want to. Also, keep in mind that no claim bonus is transferrable as it does not depend on the bike but on the policyholder. That means when you shift your insurance plan to another company, the new insurer will provide you with no claim bonus.
4. Your credit score is the only factor on which premium will depend
One of the major misconceptions about insurance plans is that they entirely depend on the credit score of the buyer. It is not true at all, and the premium depends on a lot of different factors. A credit score is just one of the main factors that insurance companies consider while issuing an insurance policy. Some of the main factors that can affect your premium amount are made, model, price, engine power, accessories, anti-theft device and more.
5. Pillion rider is insured under the two-wheeler insurance plan
Many think that the pillion rider gets automatically covered under the insurance plan. The reality is if your bike meets with an accident, the insurance policy will not cover any medical expenses of the pillion rider. Every insurance company has a clause that if you want to get cover for the pillion rider, you have to buy an add-on with the insurance plan.
6. The insurance company will cover all the damages
Many think that once you get a bike insurance plan, any damage to the vehicle will be covered under the policy. In reality, the insurance company does not cover all the damages. There are compulsory and voluntary deductibles that you have to pay for. Also, if you drive the vehicle under the influence and meets with an accident, the insurance company has the right to reject the claim.
Learn about the terms and conditions before buying the policies
There are a lot of things that are written in the terms and conditions of insurance policies. The majority of the myths get cleared if you read the fine print and understand the terms before signing the contract. You must know what all will be covered under the insurance plan and in case of unforeseen circumstances how to file a claim. Getting all the information beforehand will save your time and effort in the future.