Given an option to buy any bike of your choice, which one would you get? Can’t make up your mind? We understand having to pick one from several options is difficult. Making a choice becomes even more difficult when you are under budget constraints and are looking for a second-hand bike. Unlike a new bike, you must get the second-hand bike’s condition checked by a trusted mechanic and ensure all the paperwork is in order, among other things. But, amid all these to-dos, you will be surprised to learn that second-hand motorcycles offer a slight edge over new bikes. The cost of second-hand bike insurance is significantly less than that of a new bike. Read on to learn about the two-wheeler insurance for a used bike.
When it comes to bike insurance, what options do you have?
- Third-party liability insurance:
This is the minimum cover that one can purchase to ride their bike on the road without attracting a penalty. According to the Motor Vehicle Act of 1988, your bike insurance must cover third party legal liabilities. This policy covers property loss and medical treatment for injuries sustained by a third party in an accident involving your bike. The premium of this policy is determined by the Insurance Regulatory and Development Authority or IRDA.
- Own damage bike insurance:
The own damage bike insurance was introduced in 2019 by the IRDA. The policy covers the damage caused to your own bike by incidents such as fire, natural disasters, man-made disasters, etc. However, to buy this bike insurance in Delhi or any other state, you must hold an active third party policy.
- Comprehensive two-wheeler insurance for a second-hand bike: Comprehensive bike insurance for second-hand bikes has the feature of both own damage and third-party liability cover. It compensates you for the loss arising from an accident, theft, man-made disaster, fire, etc. If you have a comprehensive or an own damage policy, you can also purchase add-ons to enhance your policy cover.
Why do you need to secure your second-hand bike with two-wheeler insurance?
Whether you are riding a new bike or a second-hand bike, there is always a certain amount of risk that can severely impact your hard-earned savings. Here we have compiled a list of reasons why having bike insurance in Delhi, or any other state, is critical.
- Covers third-party risks: When you ride your bike, there is a possibility that you cause injury or property damage to a third party in an accident. Bike insurance safeguards your finances by covering third-party legal liability.
- Theft cover: A two-wheeler insurance safeguards you financially if your bike is stolen. The insurance will compensate you with the bike’s current market value, or the Insured Declared Value, in the event of theft.
- Covers natural calamities: You may be in control of your riding style, but what will you do if a natural disaster strikes and damages your bike? You can’t do much but will only have to spend a hefty amount on repairs. Bike insurance secures you financially by covering cyclones, earthquakes, landslides, and other similar natural calamities.
- Covers man-made disasters: Your bike can be damaged not only when a natural calamity strikes but also when a man-made disaster takes place. Two-wheeler insurance minimises your financial loss by covering terrorism, vandalism, riots and more.
- Traffic fine: Two-wheeler insurance not only secures you financially but also protects you from a traffic penalty for driving without third-party bike insurance as per the Motor Vehicles Act 2019.
Whether new or used, buying a two-wheeler is a significant financial commitment, and you should not put your bike at financial risk. Bike insurance is a saviour when any accidental damages happen to your bike. Second-hand bike insurance offers all the coverage and features similar to new bike insurance, with the only difference being lesser premium. Second-hand two-wheeler insurance is significantly less expensive because of factors such as the age of the bike, depreciation, and so on.