6 Mistakes to Avoid While Renewing Your Bike Insurance Plan


When you buy a two-wheeler, you are required by law to purchase a two-wheeler insurance policy. The Motor Vehicles Act, 1988 makes it mandatory for all two-wheelers to have a minimum of third-party liability insurance in India. For bike owners looking for coverage for their two-wheelers and self, insurance providers offer comprehensive plans with a range of add-on covers. 

Regardless of the type of plan you purchase, you need to remember that every bike insurance policy has a validity term, and it needs to be renewed before the expiry date. If you are planning to renew your two-wheeler insurance plan, then here are six mistakes that you must avoid.

6 Mistakes that You Must Avoid When You Renew Your Bike Insurance

Here are the six mistakes that you must avoid while buying a two-wheeler insurance policy: 

  • Missing the NCB Discount

Most insurers offer a No Claim Bonus to policyholders that do not file a claim during a policy term. This is a progressive discount on the bike insurance renewal price. If you have not filed a claim, then you can get a discount on the premium during bike insurance renewal. Also, make sure that you don’t miss the two-wheeler insurance renewal date, as it can result in you losing the accumulated NCB bonus.

  • Not opting for a long-term policy

When you opt for a long term two-wheeler insurance policy, you can get a discount on the premium. These are also called multi-year policies that can extend up to two or three years. Apart from saving money, these policies also save you the hassle of remembering to renew the bike insurance policy every year.

  • Not opting for a higher IDV

The Insured Declared Value (IDV) is the current market price of your bike minus the depreciation. Insurers use the IDV to determine the sum insured for the policy in Own Damage and Comprehensive plans. A higher sum insured usually correlates to a higher premium and vice versa. 

Many insurance providers reduce the IDV of the two-wheeler to offer policies with lower premiums. However, while this might seem lucrative, a lower IDV also implies a lower payout during claims. Hence, avoid the mistake of not choosing a higher IDV while undertaking an online bike insurance renewal.

  • Failing to re-assess your add-on requirements

If you are opting for comprehensive insurance for the two-wheeler, then you must remember that insurers offer a wide range of add-ons with these policies to help you customise them as per your needs. However, since add-on covers can increase the premium, many bike owners avoid opting for add-on covers to save costs. However, add-on covers can boost the coverage and save you from unnecessary costs during an accident or mishap. Hence, make sure that you re-assess your add-on requirements and choose the right ones while renewing your bike insurance policy.

  • Hiding bike modifications from the insurer

When an insurance provider offers a comprehensive bike insurance plan, you get coverage for damages to your bike due to an accident, mishap, theft, or natural and man-made disasters. The insurer assesses the market value of your two-wheeler to calculate the IDV and the sum insured and charges a premium accordingly. If you make modifications to the bike, then the insurer needs to be made aware of the same so that the IDV can be modified. Failure to do so can result in claim rejection in the future.

  • Providing incorrect details

If you are opting for an online renewal of your bike insurance policy, then it is important to ensure that you enter all your personal and vehicle details carefully. Also, double-check all the information that you are filling in the form. Any error here can result in the policy becoming invalid.

Summing Up

Policy renewal is important to ensure that your bike has an active insurance cover at all times. Most insurers send alerts and reminders to ensure that you don’t miss the renewal date of your policy. 

Furthermore, driving a two-wheeler without a valid third-party insurance policy is illegal in India; if you meet with an accident when your policy has lapsed, then you might have to bear all the costs associated with damages to a third-party person or property and to your bike too. Hence, make sure that you keep the above-mentioned points in mind and renew your bike insurance policy carefully. Good Luck!

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