Deciding which bike to buy is probably one of the most difficult decisions. Make sure the bike is in good condition, the documents are in order and the bike is well priced. A used bike or scooter offers an edge over newer vehicles as it has a lower budget. Just like when you buy a bike, you have many options when choosing insurance coverage for the bike.
You may think that insurance for a second-hand bike is too big of an investment. However, that is not true at all. Whether a bike is new or used, traveling by it poses the same amount of risk. Hence, insurance is a must. Moreover, a second-hand bike has a higher chance of malfunctions and poor performance. Hence, it might increase the risk of an accident. Here is a brief overview of vehicle insurance for pre-owned bikes:
What is second-hand bike insurance?
Two-wheelers have become an integral part of transportation for many travelers in recent times. It provides a quick fix for moving from one place to another, high mileage, low maintenance cost, and much more. In such situations, the bike will have a slight edge over four-wheeled vehicles. Also, second-hand bikes serve as an alternative when your budget is low. Bike insurance is an important part of buying a used bike or scooter. Many people fail to insure their bike or transfer bike insurance.
Used bike insurance is like regular motor insurance for new two-wheelers. You will have the options of third party insurance and a comprehensive insurance policy. These protect the insured from liabilities of any injury or property damage to a third-party and the bike from damage respectively.
Why is it important to insure your second-hand or used bike?
Bike insurance is not only a mandatory document for your old bike. It also offers a whole host of advantages. Some of them include:
Third party risk
Third-party liability insurance protects you from legal liability arising out of loss or damage to third parties. Second-hand two-wheeler insurance covers the costs you incur for third-party losses or damages. Therefore, used two-wheeler insurance will cover you from any risk to third parties or their property. *
- Insured bike theft
Imagine if your bike was stolen after you’ve spent your savings or taken out a loan to buy an old bike or scooter. A theft can leave you frustrated and affect your financial status. If the vehicle is stolen, the insurance company will pay the current market value of the vehicle. *
- Natural disasters
Natural disasters such as floods can wreak havoc on your bike. The bike may get damaged beyond repair and may cause total damage or loss. Bike insurance pays the bike’s insured declared value, thereby recovering some of the damage. *
- Man-made disasters
Riots, vandalism, shutdowns, etc. can cause damage to your vehicle and repair costs can be costly. However, with a comprehensive bike insurance policy, you can claim compensation for the insured bike. *
- Legal liability
According to the Motor Vehicles Act, 1988, a bike must be insured while driving on Indian public roads. This is a mandatory document along with the driving license, registration certificate, and emission certificate, which the rider must carry from time to time. *
- Covers own losses
With comprehensive bike insurance, you can claim your own loss. In other words, if the insured person suffers a loss due to an accident, you can claim a repair bill. The comprehensive policy also covers third-party responsibilities. Hence, it is a much costlier insurance option. You can get an accurate idea of the difference by using a vehicle insurance calculator. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.