As long as you choose to ride a vehicle, whether it is a car or a two-wheeler, it becomes essential to insure it adequately. However, today the competition is fierce between the various insurance companies, which makes the process of purchasing a car or two-wheeler insurance quite overwhelming. In short, we do not always know where to head or what offer to choose to ensure security.
Accidents are never far away when riding a two-wheeler.
It may not sound good, but a lot of the accidents that happen involve a two-wheeler, so you have to protect yourself. Understanding the penalty and bonus system is also essential when riding a two-wheeler or scooter. Similarly, if you want to cancel the insurance policy of your two-wheeler, it will take some steps necessary. Let’s understand these steps more in detail.
Learn How to Buy Two Wheeler Insurance Right Way
If this is the first time that you are looking for reliable two wheeler insurance, you will probably have a little trouble to find yourself in the middle of all the insurance offers in the market. Do not take this as a struggle, on the contrary, the more offers you have, the better you can choose based on your needs.
#1 Know how many types of two-wheeler insurance do we have?
We can categorize two-wheeler insurance in three types, starting with the third-party liability insurance which is the minimum in two-wheeler insurance. In the event of an accident, this type of insurance can insure third parties to whom you may have caused physical or material damage, but it does not protect your two-wheeler or the person riding it. This kind of insurance is primarily advocated for two-wheelers that do not have much value (bought used or not too expensive).
Then there is the intermediary insurance that offers several other covers for their part, including for your vehicle in case of damage to the latter, but also for third parties who have suffered loss due to an accident for which you are responsible. While signing a contract with an insurance company, be careful to ensure that your two-wheeler will be supported, whether you are the person responsible for the accident or that it is another person.
Finally, there is all-risks insurance that covers you for different kinds of problems, especially for accidents whether you are responsible or not, but also for theft, degradation of your equipment and many more. Do not forget to read your insurance contract before signing it.
#2 Know how does the penalty-bonus system work?
In many insurance contracts, companies introduce a penalty-bonus clause to reward their customers for responsible behavior or otherwise penalize them for being irresponsible during the contract year.
It is thus a system that either increases or decreases the insurance premium. The plan will mostly depend on the number of accidents and claims during the year. The fewer accidents you have, the more likely you are to see some of your insurance costs reduced by a bonus.
For this system, everything is done by calculation. If you have not had an accident during the year, you will receive a bonus. Indeed, the deduction will be up to 25% in this case. If you have not had an accident in the last five years and you have managed to accumulate the bonuses, you will earn a hefty no claim bonus of about 50%.
Why It Is So Hard To Choose Two Wheeler Insurance
The most challenging part of the process of two-wheeler insurance purchase is, comparing numerous two-wheeler insurance providers and saving much money when signing up for new insurance. How to do it, which components your two-wheeler insurance should have and what you have to consider when changing from two-wheeler insurance to another are some of the questions that keep bothering you.
Let’s understand in detail the factors you must consider while comparing different two-wheeler insurance policies or providers.:
#1 When can you change your two-wheeler insurance?
To change your two-wheeler insurance, you have to cancel your existing insurance in due time. The period of notice of your two-wheeler insurance is one month until the so-called main due date, i.e., from the date your insurance coverage comes into force.
What sounds simple at first, but quickly gets a bit more complicated: the end of the contract of two-wheeler insurance is unfortunately not uniformly regulated. For some insurance companies, the end of the contract is set at the end of a calendar year, similar to the end of auto insurance, while for others the end of the contract is related to the two-wheeler season. As a rule, however, the term of two-wheeler insurance is always one year.
If you want to change your two-wheeler insurance after damage, you can do so with a notice period of four weeks after the loss has been regulated.
Our recommendation: Look into your insurance documents early enough before the start of the season to find out the end of your contract. If you miss the notice period, your contract will automatically be extended by one year.
Tip: If you are undecided about the end of your contract or the cancellation policy after looking into your insurance documents, please ask your insurance company in good time. Also, to ensure that your cancellation arrives on time with your insurer, you should send the cancellation by registered letter with return receipt.
#2 What are the necessary components of your two-wheeler insurance?
Regardless of whether you change your insurer or take out new insurance, third-party liability insurance is required by law, just as for your car and your two-wheeler. Both in the third-party liability insurance and the comprehensive two-wheeler insurance, the coverage amount also called insurance sum, is crucial. It determines the maximum amount of compensation in the event of a claim.
Our recommendation: Since the differences in premiums to be paid here are relatively small, we advise you always to choose a high coverage amount. If you want to make a comparison that you can use according to your needs, then you should take a look at the comparison portal coverfox.com.