Buying the right bike insurance online can turn out to be quite difficult if you do not understand some of the commonly used terms. Owing to this lack of information, many times people are unable to pick the right insurance types and end up paying more in accident damages or have a higher maintenance charge for their bike.
Nonetheless, to help you understand two-wheeler insurances better, here are 7 of the most commonly used jargons to know when looking for bike insurance online –
- Insured Declared Value (IDV) – This is the approximate market value of your bike. An IDV is nothing but the maximum insurance amount covered for your bike. Your IDV is directly proportional to the monthly premium you need to pay. A larger IDV means a higher premium and vice versa.
- Deductibles – These represent the financial contribution the bike owners gives when making a claim alongside the insurance company. Voluntary deductibles and compulsory deductibles are the two types of deductible in the insurance market right now. Choosing a voluntary deductible significantly reduces the premium paid at regular intervals but also remarkably reduces the amount of money the insurance company pays to cover claim bills.
- Add-on or riders – Add-ons, also known as riders, are the extra services that one can avail to make the most out of their two-wheeler insurance. Increasing the number of add-ons increases the premium you pay but it also allows you to save money in other avenues related to your bike. Availing the popular engine protection and zero-depreciation add-ons would definitely increase your premium by a little bit in return it would help you to save a significant amount of money in the longer run.
- Reimbursement claim – Once your insurer has inspected the vehicle damage and has made ready a budget for the repairs, you can have the bike repaired and raise a claim to your insurance company and receive the insured amount. This claim is called a reimbursement claim.
- Comprehensive insurance/cover – This is an insurance type that covers you against third party damages and also provides insurance against the damages incurred to your property. Comprehensive insurances have a higher premium charge but in exchange, also provide an extended list of benefits.
- Third-Party insurance/cover – A third-party insurance covers you against the damages incurred to a third party or their property in an accident. This insurance type does not help you pay for the damages incurred to you or your property in the accident. Third-party insurances are the most basic forms of vehicle insurance that you can find on the internet simply by searching ‘online two wheeler insurance renewal’ on Google.
- First, second, and third party – The term first party refers to the person buying the insurance while the terms second and third-party correlate to the insurance company and to the other concerning party in an accident, respectively.
We hope this article helps you understand two-wheeler insurances with more clarity the next time you set out to get your vehicle insured. All the best!
