In today’s day and age, getting insurance for all your assets has become a necessity. It is no longer an option. Your two-wheeler is no exception to this. It is recommended to have a 2-wheeler insurance policy to cover you in case of unforeseen incidents involving your vehicle.
There are multiple options for bike insurance policies available online. Choosing one can be overwhelming. It is good to read up a little before deciding on any policy provider. Did you know that 2-wheeler insurance policy could be either a short-term one or a long-term one?
A short-term bike insurance policy is valid only for a year. It gives you security against loss (theft) and damage (due to natural calamities like floods and storms, and man-made disasters like riots, strikes, and vandalism).
A long-term policy, true to its name, has a longer validity. You could opt for a two to three-year policy term. In terms of benefits, this policy also protects your bike against loss and damage, in case of both man-made disasters and natural calamities.
Let us understand both of these options in detail by looking at the features, benefits, and the differences between the two.
- Renewal of policy
A long-term 2 wheeler insurance policy offers you a term of two to three years or more. You do not have to go through the hassle of renewing the policy each year. It also protects you from the risk of a policy lapse each year. It is convenient to not have to renew your insurance and do paperwork each year. A short-term policy, on the other hand, will have to be renewed every year, else it will expire and you will lose the policy benefits.
A short-term bike insurance policy gives you the flexibility to modify your policy as your requirements. A long-term policy is comparatively less flexible. A short-term policy also allows you to easily add riders like Depreciation Rider, Return to Invoice Rider, Emergency Medical Expenses Cover, and the like. A long-term policy may not let you opt for such multiple add-ons.
A long-term 2-wheeler insurance policy helps you save money on annual premium hikes as the premium stays the same throughout the policy period. At times, the Insurance Regulatory and Development Authority of India (IRDAI) may hike the third party premium rates. This can also lead to an increase in damage premium for self, affecting short-term policies. A long-term policy does not get affected by these hikes.
Both short-term and long-term two wheeler insurance policies have their own set of pros and cons. One cannot be deemed better than the other, as it purely depends on what you are looking for. For example, if you were planning to sell your two-wheeler soon, it would make more sense for you to opt for a short-term insurance policy. No matter what you choose, make sure you do your homework and make an informed choice.