Every bike owner must insure their vehicles with a two-wheeler insurance policy to safeguard them from unforeseen mishaps. Though several policy types are available in the market, long-term bike insurance can offer you stability, extensive coverage, and flexible cancellation options.
If you are planning to purchase long-term bike insurance online, keep reading to learn about the offerings, benefits, and limitations of this policy!
What are the Advantages of a Long-term Bike Insurance Policy?
Here are some of the reasons why you should buy a long-term bike insurance policy:
- Premium Rate Stability
The premium amount of long-term two-wheeler insurance is locked in for up to five years. Thus, the annual insurance rate remains stable without burdening the policyholder with increased expenses.
Policyholders can avoid high insurance costs due to the changes in regulations and better manage and plan their budgets and finances. So, you can get continuous coverage by paying only once for the insurance premium.
- Extended Discount
Long-term two-wheeler insurance offers several discounts besides reducing the hassles of annual renewals. As the policyholders commit to a long-term policy period, the insurance company’s cost for policy management and renewal is reduced.
Therefore, they give these savings to the policyholders through incentives or discounts.
- Long-term Two-Wheeler Insurance Renewals
Annual two-wheeler insurance renewal seems hazardous compared to renewing it after 3 to 5 years. If not renewed on time, bike insurance policies get lapsed, which leads you to lose the benefits of the policy. With the extended renewal option, you get enough time to prepare your vehicle for the before-renewal inspection and complete everything seamlessly.
- Maintaining No Claim Bonus (NCB)
If you maintain a claim-free year, the insurance company rewards you with no-claim bonuses or NCB. Long-term two-wheeler insurance policies enhance the potential for accumulating a higher NCB, reducing the risk of lapses that could reset benefits.
This leads to significant savings for drivers with clean records and simplifies the insurance process by minimising the need to claim NCB annually.
- Protects Against the Loss of NCB
With long-term bike insurance policies, you cannot lose your NCB benefits against minor claims or missed two-wheeler insurance renewal. It keeps the no-claim bonus intact even if the policyholder misses the renewal date.
- Hassle-free Policy Management
It becomes troublesome to manage insurance policies when you have multiple renewal dates to meet per year. With long-term two-wheeler insurance, you are safe from yearly renewal hassles, getting enough time to manage the paperwork when needed.
Besides, you will hardly miss the renewal, which may come once in two to three years, making policy management simple.
- Flexible Cancellation
Last but not least, cancellation of a long-term bike insurance policy is also easy. You can reassess your insurance needs at any point of time and cancel the long-term policy if you get a better insurance deal anywhere else. The best part is that you don’t need to pay any cancellation charge or penalty.
Besides, most insurance companies refund your premium if you withdraw before the term ends. Thus, long-term bike insurance is a low-risk investment option that offers you flexible and long-term benefits.
What are the Disadvantages of Long-term Bike Insurance Policy?
Despite its endless benefits, long-term two-wheeler insurance also has some limitations. Here are they:
- IDV Depreciation
The market value of your vehicle will depreciate every year according to the rates fixed by the IRDA. Thus, your bike’s insured declared value or IDV will eventually reduce. As long-term insurance has a delayed renewal date, you will receive a depreciated IDV upon losing the motorcycle before the renewal. So, comparing the IDV in bike insurance and the premium of long-term bike insurance with short-term ones is essential.
- Fluctuations in Premium Amount
The premium is locked for 3 to 5 years in long-term two-wheeler insurance. So, if the premium rates decrease, the policyholder will not be able to benefit from the fluctuation.
What are the Things to Consider While Buying a Long-term Bike Insurance Policy?
Bike owners must consider the following factors while purchasing long-term bike insurance online:
- Compare Different Plans
Analyse your coverage needs before purchasing a long-term bike insurance policy. The policy tenure for long-term policies can be two, three, or five years, depending on the insurance provider you choose. Decide the policy period according to your convenience and requirements.
- Understand the Pricing and Benefits
Different insurance plans offer a range of benefits and pricing. For instance, a third-party bike insurance policy covers damages caused to someone else’s property. On the other hand, a comprehensive policy covers both the policyholder and third-party damages.
The policy pricing will also differ based on the coverage. Thus, a comprehensive policy comes at a higher price than a third-party policy. You can compare the policies and choose the one that suits your needs and budget perfectly.
- Add-ons
Long-term bike insurance policies include several add-ons that increase the premium. Therefore, policyholders must select the add-ons based on their requirements to avoid excessive expense burdens and get proper coverage.
- Know About Your Insurer
One should check the insurer’s reliability before purchasing bike insurance online. Insurance companies offer different policy plans, inclusions, exclusions, add-ons, etc. It is essential to compare the offerings of different companies before finalising your decision.
Now that you know the pros and cons of long-term two-wheeler insurance, you can decide whether to insure your bike with this plan. Though there are a few disadvantages, long-term policies also offer many advantages. So, compare the pros and cons to make an informed decision before purchasing long-term bike insurance online.
This post was published on February 25, 2025 6:15 pm