Daily transportation and commute can be made much easier with a bike by the side. There are several advantages to having a motorcycle and daily commute is just one of them. You can even plan road trips with it. While buying a bike make sure you research thoroughly about bike insurance online. It is essential to have bike insurance while you get a bike. It will only protect you and your bike but also the third person involved if you meet with an accident suddenly.
General insurance can work too, but while searching for bike insurances online you will notice that there are several more advantages of bike insurance. You need to be well versed with your needs while you buy bike insurance. So here are some of the standard terms you will need to understand before purchasing bike insurance:
- Insured Declared Value (IDV): the insured declared value, or the IDV refers to the maximum amount the insurer can pay you as a claim. This amount is that of the current market value of the bike at the time of the purchase. You can claim the whole amount in case of theft or damage beyond repair. Quoting an IDV lesser than your bike’s current value can get you lower premiums, but you will also receive inadequate compensation when needed
Now you may ask if you can claim for the insurance twice a year? You can, but it is essential that you have all the necessary documentation needed, and your claim does not look fake. The second time it might be a little challenging to get it approved but in emergencies you can
- Own Damage Premium: This is a part of the premium that you pay to the insurance company. This premium ensures your bike against circumstances that are not in your control such as natural or man-made disasters. The compensation is value is close to the IDV but differs at several factors. Make sure you read about it while searching for various bike insurance online
- Zero Depreciation Cover: This cover waives off depreciation value on the replaced parts, which is deducted from your claim at the time of compensation. Opting for this cover will help you get a higher claim than the market value at the time of settlement
- No Claim Bonus: NCB is a bonus amount you get when you do not file for an application in the previous year. This acts as a gift for taking ardent care of your vehicle. NCB can be as high as 20% for the 2nd year and up to 50% in the 6th year which lowers your premiums drastically so it makes sense to not file for minor damages and use NCB instead
- Third-Party Cover: This is an essential part you should read while searching for bike insurance online. With this cover your insurance can pay for a third party involved in an accident with you.
These are some of the most common terms one should search for while reading about bike insurances online. Understand your insurance and get the best one.