Keeping your two-wheeler insurance up-to-date is essential. It secures financial protection, gives a sense of security, and is in line with legal standards; however, during renewal, people often need to pay more attention to small details that can lead to costly or inconvenient mistakes.
We will discuss some common errors you must avoid to experience a smooth renewal experience and make the most of your policy.
Common mistakes to Avoid During Two-Wheeler Insurance Renewal
1. Importance of Timely Renewal for Your Insurance Policy for Bike
Renewing your insurance policy for bikes on time prevents unwanted lapses in coverage. A missed deadline can mean a break in coverage, leaving you unprotected and liable in case of an accident.
Timely renewal also helps you avoid penalties, including a fine of INR 2,000, imprisonment of up to 3 months for the first offence, and INR 4,000 for repeat violations.
It ensures continuity in benefits, such as the No Claim Bonus (NCB). Mark your renewal dates, set reminders, and give yourself enough time to review policy options.
2. Double-Check Your Policy Details for Accurate Coverage
When two wheeler insurance renewal, make sure to check all the details to avoid limited coverage. If you’ve upgraded your bike or use it more often, it’s important to make sure your new policy meets your needs. Look at things like extra coverage options, protection for accessories, and third-party coverage to ensure you’re fully protected.
3. Choose the Right Insured Declared Value (IDV)
Setting an accurate Insured Declared Value (IDV) ensures you get adequate compensation if your bike is stolen or damaged beyond repair. IDV impacts your premium and the amount you’ll receive if you need to make a claim.
Choosing a very low IDV might save you on premiums but also mean less compensation. On the other hand, setting an unrealistically high IDV could make your policy unnecessarily expensive. Review the current market value of your bike to set the correct IDV for your renewal.
4. Leverage Your No Claim Bonus (NCB) for Better Savings
The No Claim Bonus (NCB) rewards safe driving and not making claims during the policy term. At renewal, ensure you claim your NCB within 90 days after your policy expires to maintain continuity. This bonus can significantly lower your premium.
The savings typically increase every claim-free year, providing a cumulative benefit. When renewing, verify that your NCB is included in your premium calculation, which can lead to meaningful savings.
5. Assess the Need for Add-Ons
While add-ons offer extra protection, not all may be relevant to you. Add-ons like zero depreciation, engine protection, and roadside assistance enhance your insurance policy for bike but also increase the cost.
Review these add-ons carefully, considering your bike’s age, usage, and personal needs, and make sure they still align with your current requirements. Opt for add-ons that add value to your riding habits without unnecessarily raising your premium.
6. Compare Different Renewal Options for Cost-Effectiveness
Sticking to the same insurer might seem convenient, but there may be more cost-effective options. Renewal time is a good opportunity to explore other insurers and compare their offerings.
Many insurance providers offer online tools to help you quickly compare premium rates, add-ons, and benefits. You might find a better deal that provides enhanced coverage at a lower price by comparing.
7. Look Out for Renewal Offers and Online Savings
Many insurers provide online savings and promotions that can reduce your premium. While renewing your two-wheeler insurance, ask your provider about ongoing offers. Some insurers offer online savings to loyal customers or those with multiple policies.
Others might have special deals for online renewals. Check for specific propositions like Safe Driver Savings or saving for holding various policies, which can further lower your costs.
8. Verify Your Personal Information is Up-to-Date
An often overlooked aspect of renewal is updating personal information. Accurate details are essential for smooth policy management and claim processing. Ensure your contact details, address, and other personal information are current.
Incorrect information can lead to claim delays, policy cancellations, or rejections. Updating these details during renewal takes minimal effort but can make a big difference if you need to use your insurance.
