A two wheeler insurance policy can be likened to a guardian, it will see you through tough times on the road and off it. However, even a small break in your insurance coverage could lead to significant losses. Forgetting to renew the policy is a common mistake that many policyholders tend to make. Which is why long term two wheeler plans were introduced in the market.
If you are planning to buy bike insurance online and are confused between getting a short term (annual) and a long term two wheeler insurance, here’s everything you need to know:-
What is the difference between the two?
The basic difference between the two is the policy term. A short term two wheeler policy provides coverage for one year and needs to be renewed on an annual basis. On the other hand, a long term two wheeler policy provides coverage for up to 3 years by paying a single premium. Hence a long term two wheeler policy saves you from the hassle of annual renewals and the risks associated with policy lapse. Apart from the policy term, they also differ in terms of: –
- Flexibility – If you wish to modify your policy, a short term two wheeler insurance offers more flexibility at the time of renewal. For example, you can increase your policy coverage or opt for a rider at the time of policy renewal.Therefore, a short term bike insurance plan is more flexible than a long term two wheeler plan as you can change your policy every year.
- Cost-effectiveness – A long term bike policy is more cost effective as it saves you from the annual premium hikes imposed by the IRDA (Insurance Regulatory and Development Authority of India). Additionally, most insurance providers offer discounts on long-term two wheeler insurance premiums.Therefore, a long term two wheeler plan is more cost effective than a short term bike insurance policy.
How to Choose the Right Bike Insurance Plan?
As you can see, both short term as well as long term bike plans have their own pros and cons. A three year policy is relatively cheaper and saves you from the hassle of annual renewals. If comfort and cost-effectiveness is your priority, opting for a long term two wheeler insurance definitely makes more sense.
On the other hand, a short term two wheeler insurance offers you more flexibility. Hence, if you expect precise protection along with the flexibility to change each year then, you can opt for a short term bike insurance plan.
At Finserv MARKETS, we offer both short term and long term bike plans online. Log on to our website for more information on both two-wheeler insurance plans. Avail benefits like quick claim settlement, 24×7 bike roadside assistance and access to over 4,000 network garages. Just remember to make the right choice according to your individual needs and requirements!
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