Benefits of Buying Long Term Two Wheeler Insurance

While the number of two wheelers is growing exponentially every year, the number of vehicles falling out of the insurance net is also very high. More than 2/3rd of old two wheelers go uninsured. Keeping this in view, having a long-term insurance option for this segment becomes critical so that the maximum number of vehicles are covered under insurance.

Whatever be the case, long-term bike insurance is worth considering as it offers certain advantages such as some discounts in premium and insulation from the yearly increases in third party (TP) premium. Let us examine the advantages and disadvantages of taking such a policy.

Convenience

Long-term two-wheeler insurance saves one from the hassles of renewing the policy every year. According to experts, it is cumbersome to keep track of annual renewal dates of policies, particularly when someone owns more than one policy. Further, even if someone remembers the renewal date, he/she might fail to renew the policy owing to lack of time or some other reason. However, these things can be taken care of by opting for long-term two-wheeler insurance. It provides a convenient way for the customers to keep their two wheelers insured without facing the hassle of annual renewals.

Avoid non-renewal related risks

The insured is also exposed to certain risks in case of non-renewal of an two-wheeler insurance policy or till the time the policy is not renewed. For instance, if the vehicle meets with an accident or is stolen when the policy is not in force, then the vehicle owner would have to bear the entire financial loss himself/herself. However, this can be easily avoided for three years by buying a long-term two-wheeler insurance policy.

Avoid Problems of Renewing A Lapsed Policy

In case the policy has lapsed, some insurance companies, though not all, insist on getting the vehicle inspected to determine its condition prior to renewing the policy. Buying a long-term two wheeler policy helps avoid such a situation because the policy does not have to be renewed for two or three years depending on the tenure of the policy.

Discount on own damage premium

Today, insurance companies are willing to offer discounts on the own damage part of the policy premium for long term insurance policies. Long term policies help insurers cut administrative and policy-issuing costs and these savings are in turn, passed on to the customer in the form of a discount. However, not all insurance companies offer such discounts. As the premium rates for general insurance are determined by the policy regulator, the premium rate per annum for yearly and long term policies is the same. However, customers can request the insurance company, broking firm or agent for a discount and chances of getting deeper discounts on long term policies vis-a-vis one-year policies are high.

Premium rate frozen for three years

Long-term insurance also saves one from the annual hike in third party premium rates. Third party premium rates are fixed by the insurance regulator which normally hikes these tariffs by 10-15% per annum on an average. Moreover, based on their claims experience, policy coverage and other factors, insurance companies may also increase the OD (own damage) premium from time to time. But one remains insulated from any such hike during the policy term if one has opted for a long-term cover.

The long-term two wheeler insurance policy is a boon for two-wheeler users as it frees them from renewing the third-party liability policy every year. The fixed premium during the policy period saves them from the annual rate hike. Apart from this, they also get a benefit from the above mentioned discounts.

I am an expert writer in Insurance Industry and have knowledge about various insurances online like Car Insurance, Two-wheeler Insurance, Health Insurance.