Whether it’s a bike or a scooter, your two-wheeler is an important part of your daily life and hence, must be kept secured by all means. Bike insurance is the best way to avail of financial protection in the event of theft or an accident. While you may know it is vital to renew bike insurance every year, many people are unaware of the right time to renew it. Here is a detailed overview of bike insurance renewal so you stay insured all the time.
When should you renew bike insurance?
Every insurance policy comes with an expiry date. Most bike insurance policies come with a validity of one year but you may also have a 3-year policy if you opted for multi-year insurance. The renewal of bike insurance must be done before the due date to avoid the risk of losing your insurance. Apart from timely renewal, you can follow the tips given below
- Consider opting for a multi-year insurance policy to avoid the hassle of renewing every year. It will help you stay insured for a longer interval.
- For a short-term or an annual insurance policy, it is suggested to renew bike insurance two to four weeks before the date of expiry.
- In case you miss your due date, do check with your insurer right away for a grace period so you can renew the policy immediately. It is also important to remember that during the grace period, your bike insurance will be deemed null and void and hence, you would not be able to make any claims.
Importance of timely bike insurance renewal
- Penalty: Failing to renew bike insurance on time exposes you to the risk of penalties. When riding a bike with an expired policy, you may be fined if caught. Hence, a bike insurance renewal done on a timely basis will save you and your hard-earned money from such hassles.
- Risk of liability: Your comprehensive bike insurance policy also offers liability coverage. It ensures in the event of third-party damage to people or property, you are covered. Not having valid third-party insurance can put you in trouble both legally and financially. You cannot raise a claim and end up bearing the cost of all third-party damages out of your own pocket.
- No coverage for own damage; In case your bike gets damaged or lost, you do not hold a right to raise a claim if the policy expires. You will not get coverage for any damages as the policy won’t be active. You will have to pay for all damages yourself and won’t get any compensation for a lost bike. Hence, a timely bike insurance renewal is ideal.
- Grace period: Your insurance company mostly provides a grace period after you miss the due date to renew bike insurance. This grace period lasts for a week to a month, depending on your policy terms. This allows you to get another chance to renew your bike insurance and safeguard the benefits. You can also avoid bike inspection and secure the same IDV in bike during the grace period but your policy would not be active during this time.
5. Bike inspection: In the event of not renewing your policy during the grace period, you would need to purchase a new bike insurance policy. This may require a bike inspection where the insurer will review the condition of your bike before giving you the policy. This also means there will be a new quote, with mostly a higher premium or reduced IDV in bikes.
- No claim bonus: Missing the date to renew bike insurance also means losing no claim bonus. No claim bonus is the reward you get for being a safe driver and not raising any claim during the policy tenure. While the no-claim bonus for the first year of policy is a 20% discount, it can go as high as 50% for five or more years. This no-claim bonus lapses after the grace period.
Benefits of timely bike insurance renewal
Here are some major benefits you get when you renew bike insurance before the expiry date:
- You stay legally compliant with Motor Vehicles Act and do not have to pay penalties
- You can continue to enjoy coverage
- Your IDV in the bike remains the same
- You can reduce the premium with no claim bonus discount
- You do not have to get a bike inspection done
- You can be at peace knowing your bike and finances are secure.
Important factors to consider before you renew bike insurance
- Coverage: Before renewing your bike insurance, you must consider your coverage. A bike insurance renewal is a perfect time to upgrade your coverage. You can also consider buying more add-ons as per your specific needs.
- Discounts available: If your bike has security gadgets installed, you can avail of additional discounts at the time of renewal. A gadget like an anti-theft device ensures more safety and hence, fewer chances of filing a claim. This leads to the insurer giving you a discount on the premium for your own damage component. You must remember to have an anti-theft device from an ARAI certified brand only.
- IDV: This is also a good time to assess the IDV in bikes. See if you want to increase or decrease the IDV as it will impact the premium as well as the coverage of your vehicle.
Now that you are aware of all the aspects of bike insurance renewal, ensure that you do not miss the renewal date and continue to enjoy all the benefits that your bike insurance has to offer. Failing to renew bike insurance in time can cause you significant financial losses and hassles. So, subscribe to the email and SMS alerts of your insurance provider and get your bike insurance renewed on time.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.