According to the General Insurance Council (GIC), 60% of the vehicles on Indian roads are uninsured, with bikes and two-wheelers making up the majority. Ironically, two-wheelers are involved in several incidences of accidental fatalities on roads. So, as soon as you get your hands on a bike, one of the initial things topping your list should be buying a bike insurance policy. It aids in protecting both you and the bike from any unforeseen situations.
Nowadays, you can easily get insurance online with just a few clicks. Regardless of how you purchase the bike insurance the policy has a predetermined starting and end date. Currently, under the long-term multi-term policy, the policies can last up to three years in addition to their typical one-year duration. To continue enjoying the advantages of your two-wheeler insurance, it is always advised to ensure that you renew your policy on time. Before discussing the whats and hows of renewing your two-wheeler insurance, let’s get familiar with some of its basics.
What is Bike Insurance Policy Term?
The bike insurance policy term is the period for which the insurance coverage is in force. As of now, there are two options available in such policies, short-term and long-term. You can pick the one that best suits your needs. However, after the policy term ends, policyholders must renew their policies to enjoy their benefits.
What Happens When a Policy Expires?
If you don’t renew your bike insurance by the policy term’s end date and it expires, you won’t have any legal or financial protection against third-party obligations or damage to your vehicle. With an expired insurance policy, you can encounter difficulties such as:
- You risk fines and legal repercussions if you ride a bike without an active insurance policy
- Lack of compensation if your bike gets stolen
- No coverage for any damage
- No third-party liability coverage
- You might have to pay extra to get new insurance
- Insurance companies can demand a bike inspection before issuing a new policy
Bike Insurance Renewal: What is the Best Time?
It is usually advised to do it before the due date or long before the insurance policy’s expiry date to prevent any loss of coverage and the financial assistance it offers. Here are several methods for determining when is the best time to renew your insurance:
- It is wise to choose a multi-year plan if you want to prevent your insurance from expiring and from having claims denied while also avoiding the headache of the ongoing renewal procedure of the policy every year. This assists in keeping you covered for a minimum of three years.
- If you currently have a short-term insurance policy, it is best to renew it within 15 to 30 days after the expiration date. For example, if your two-wheeler insurance expires on 1st October, it is recommended to renew the policy at the beginning of September only.
- There’s no need to freak out if unavoidable circumstances have caused you to miss your policy’s due date. You can simply connect with your preferred insurance provider to determine if a grace period is available to help you with your policy renewal. However, remember that your insurance coverage is regarded as null and void during the grace period. As a result, you must take particular care with your bike during that period since your insurance will not accept any claims under your coverage.
4 Tips to Consider While Renewing Your Bike Insurance Policy
Below are some tips to be mindful of to make sure that renewing your insurance policy will be a simple process:
- Choose Before Your Policy Expires
Renewing your insurance at least 45 days before your policy expires is recommended. You can also lose your accumulated benefits if you don’t do this. Also, it will save you the hassle of buying a new bike insurance policy when your old one expires.
- No Claim Bonus
If no claims have been made during the policy term, a discount known as a No Claim Bonus (NCB) is granted at the time of renewal. It builds up over time and is cumulative in nature. If it is applicable in your case, avoid losing out on the benefits of this discount by taking advantage of it at the time of renewal.
- Review Your Coverage
After having your insurance for a while, say a year, you will understand what is effective for you and what needs to be modified. At the time of renewal, you can make the necessary adjustments to your insurance to make it fit your requirements.
- Renewal After Expiration
If you find yourself in a scenario where the expiration date has passed, take advantage of the grace period offered by insurance providers. This period after the expiration of your insurance allows you to renew your policy and pay the premium.
Renewing your two-wheeler insurance at the right time is one of the things that bike owners should never miss. With all the information you just went through in this article, now you know when is the best time to renew your insurance policy. It is quite natural to miss out on the due date since it’s such a minor detail. So, quit procrastinating, and safeguard yourself and your bike by renewing your insurance on time.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.