Out of the different options available for commuting, two-wheelers are the most suitable choices. They are easy to park and can be used for slithering through heavy traffic. Therefore, most individuals rely on their bikes for daily commutes and small distance trips.
However, bikes are assets that depreciate with time. Therefore, your bike’s market value will keep on lowering with time because of wear and tear. In addition, you will have to spend a considerable amount if your bike is damaged from accidents, natural disasters, or in case you damage or injure any third parties. These scenarios can impact you heavily if you’re not financially prepared. However, you can rely on a few methods to financially protect your bike.
3 Methods to Financially Protect Your Bike
Given below are some of the best methods to protect your bike:
- A two-wheeler insurance plan: When you own a bike insurance plan for your vehicle, it will be protected from unprecedented dangers like thefts, accidents, etc. You can choose from three bike insurance plans- Third-party (compulsory), own damage(optional) and comprehensive (optional). Your bike’s coverage will depend on the type of insurance policy you choose.
If you opt for a third-party bike insurance plan, you will get coverage only for third-party liabilities. This way, you will get financial support for dealing with any damages that a third-party property or an individual may have faced. It will also cover injuries caused to the third party. However, third-party plans do not provide you coverage for damages that your two-wheeler has faced.
With an own damage insurance policy, you will receive financial protection for your bike from damages caused due to natural and manmade disasters.
With a comprehensive bike insurance plan for your bike, you get the benefits of third-party coverage and own-damage cover under the same plan. Some of the instances your bike is protected from with a comprehensive insurance plan are:
- Theft coverage
- Accidental damage
- Damage due to man-made or natural calamities
- Coverage for third-party liabilities
Owning a suitable bike insurance plan for your two-wheeler can be quite beneficial for your bike’s well-being.
- Saving funds: When you’re an earning member of the family, saving a portion of your income can be quite helpful if you are dealing with an unpredictable accident with your bike. You can opt for different saving avenues like stocks, mutual funds, etc.
Opting for such ventures will help you get access to funds whenever needed. It is important that if you’re allocating your funds in these instruments for your bike’s safety, you must learn about the flexibility they offer. This is because you must get access to the funds whenever necessary.
For instance, liquidating stocks is quite easy, and you will get quick access to your funds during emergencies. However, stock investments need a decent amount of market expertise and knowledge. Therefore, you must conduct a decent amount of research before selecting stocks for investments.
- Borrowing a loan: Borrowing a loan from a bank can be an optimal option to deal with the expenses of your bike. You will get instant financial support for dealing with your requirements with a loan.
However, you must learn about important issues like the interest rates on loans and the repayment tenure that comes with the loan for your bike. Keeping these factors in mind will help you take out a suitable loan for your bike and deal with your financial requirements.
While all three options are beneficial, opting for a bike insurance policy is one of the most suitable choices.
Why are Bike Insurance Plans the Most Suitable Choice?
When comparing the different plans for financially protecting your prized possession, getting bike insurance is the most optimal method. Given below are a few reasons getting 2-wheeler insurance is the better option:
- Mandatory: As per the Motor Vehicles Act (1988), in India, every two-wheeler owner must own at least third-party insurance for the two-wheeler. You can opt for a comprehensive plan to protect third parties and your bike from damages. Your insurer will deal with the damage repair costs with suitable insurance for your two-wheeler.
- Easy to purchase: Most insurers like Tata AIG have started offering bike insurance online. With online insurance for your two-wheeler, you can carry out the purchase from the comfort of your home. Along with this, you can also renew the policy from the comfort of your home. You also get to use different tools like calculators to estimate the premium amount for the plan. Calculators can also help you compare different plans.
- No-Claim Bonus: Insurers will reward you for not filing a claim and driving safely by offering you discounts on the premium amount for every year you do not file a claim. The discount can go up to 50% if you do not file a claim for five consecutive years.
Financially protecting your bike can be quite helpful for you. It will help you deal with issues like damages, medical bills, etc., with ease. While you can opt for different choices like loans and market instruments for getting financial support, opting for a bike insurance policy is the most optimal choice. With a small investment towards your policy, you can protect yourself financially from damages caused due to unprecedented events on the road.