Pros And Cons Of Buying Bike Insurance

Updated Nov 21, 2024

Pros And Cons Of Buying Bike Insurance

We often follow the practice of weighing the pros and cons before making a decision, especially a financial decision. Just like any other thing, buying Insurance for a two-wheeler also has certain benefits and drawbacks. In this article, we will outline the pros and cons of purchasing two-wheeler bike insurance and lay out some key additional advantages of purchasing a bike insurance.

Pros and Cons of Buying Two-wheeler Insurance

Pros	Cons
All the damages incurred by your bike are covered under the policy.	You have to keep paying premiums even if your bike remains undamaged throughout the policy.
In cases of road accidents, insurers usually provide legal support for a third party claim.	While recieving claim, you eventually have to pay for the depreciation of parts of bike that are damaged and need replacement.
The comprehensive policy covers theft, damages due to natural disasters, and damage to third-party..	You have to pay pre-agreed deductibles during the claim.
In case of accidents, you dont have to worry about the finances in cases of accidents enabling you to clearly focus on physical recovery and getting your bike repaired.	You need to prepare authentic documents according to the checklist and might need to go to police station to file an FIR as well.
Various add-ons are available to extend the coverages on your policy.	The process of claim can be time consuming due to investigation, FIR, inspection, appealing against rejection etc.
You can get you bike repaired without any upfront payment at a cashless garage.	Your claim can get rejected due to various reasons.
It is easy to renew or port the policy. Upon renewal you can get discounts such as No Claim Bonus upto 50%	There is a geographical limitation for claims, if your car gets damages outside the mentioned geographical location then your claim is likely to get rejected.

Additional Advantages of Bike Insurance

Besides the above-mentioned, here are some key additional benefits of getting insurance for your two-wheeler.

Roadside Assistance: This is probably the most useful add-on cover across the motor insurance domain. It provides assistance at your location with necessary tools and consumables. This cover helps you in situations when your bike breaks down in the middle of a journey. It is a very necessary cover, as being helpless in the middle of a road is a terrible situation to be in.
Personal Accident Cover: The Personal Accident Cover extends the benefits to your own safety. In case of an accident where you get physically injured, this add-on covers the medical expenses of your treatment. It also includes compensation in case of temporary/permanent disability or death of the policyholder.

Conclusion

To summarise, when you look at the pros and cons of buying insurance you can do a cost-benefit analysis and make an informed decision. While the pros and cons might come out to be equal in number, the weight of the benefits of having two-wheeler insurance stands out. Insurance is a phenomenon of transferring the risks to an insurance company in exchange for paying premiums. Everyone has a different thought process, so you should think assertively and decide based on your needs and budget.

FAQs

Is bike insurance mandatory even if I'm a safe rider?

Third party bike insurance is mandatory regardless of any factor. However, the own damage bike insurance is not compulsory but is highly recommended even if you are a safe driver because someone else’s mistake can cause harm to you and your bike as well.

How does the claim process work, and why does it sometimes take so long?

The claim process follows these steps are Immediate intimation to the insurer, Gather documents required(police report, damage photos, etc., Surveyor inspection of the vehicle, Claim approval and settlement. The process can be time-consuming due to detailed investigation and legal formalities in case of the involvement of other parties. Poor documentation which includes missing required documents or submitting unauthenticated documents can also delay the process.

Are add-on covers worth the extra cost, particularly roadside assistance?

Yes, some add-on covers provide immense value exceeding their cost, especially the roadside assistance cover.

What are the common reasons for claim rejection?

The most common reasons for claim rejection are delayed claim intimation, Policy lapse or non-renewal, Incomplete or incorrect documentation, Violation of policy terms (e.g., drunk driving), and pre-existing damage claims.