9 Common Mistakes to Avoid When Renewing Bike Insurance

Technology has helped the insurance industry in many ways. Improved communication networks and processing capacity have led to faster payment processes. Customers can access insurance services through websites, mobile apps, and customer portals, reducing the need for physical visits to insurance offices. Policyholders can view and manage their policies, file claims, and get quick responses to inquiries. However, when it comes to renewing insurance for a bike, they unknowingly make mistakes that may lead to problems in the future. This article discusses 9 common mistakes made while renewing your bike insurance.

9 Mistakes To Avoid When Renewing Your Bike Insurance

Following are the mistakes people make while renewing bike insurance:

Not Reviewing the Coverage Properly

Your needs may have changed since your last policy. Review coverage options to ensure they still meet your requirements. Failure to check the insurance policy may cause coverage gaps. These loopholes may expose you to financial risks in the case of a dispute. Insurance products and coverage options evolve. By not reviewing your coverage, you might miss out on new features or add-ons that could better suit your needs or provide additional protection.

Not Taking Discounts 

Another mistake people make while renewing bike insurance is not taking discounts. Bajaj Insurance General Insurance Company offer discounts* for factors like safe driving records or multiple policies. A clean driving record can reduce your insurance premium and lower the risk of claim rejection. This discount is called a Safe Driver Discount or No Claim Bonus. This discount applies to the 'Own Damage Premium' part of the insurance plan and is usually between 20% and 50%. * Standard T&C Apply

Ignoring Add-ons 

Add-ons are essential for Two-Wheeler Insurance and can help customise coverage to specific needs. While add-ons increase the premium cost, they can provide more coverage than the basic plan. Some say that every add-on component is essential and that not considering add-ons can lead to missed opportunities to customise coverage.

Incorrect Assessment of the Bike Value 

The Insured Declared Value (IDV) of a bike is the maximum amount that comes under insurance and is calculated using the manufacturer's listed selling price and the bike's age. Underestimating the IDV to save on premiums can lead to underinsurance, which means the policyholder may have to pay a large portion of the repair bill out of pocket if they make a claim. On the other hand, overestimating the IDV won't result in a larger payout, as insurance companies will assess the damage during the claim process.

Not Comparing Quotes

It is a common mistake people make while renewing bike insurance. Not comparing quotes when renewing bike insurance can lead to missed opportunities for savings and better coverage. Insurance premiums can vary significantly between providers for the same level of coverage. By comparing quotes, you can identify insurers offering competitive rates and potentially save money on your premiums. By comparing quotes from multiple insurers, you can make an informed decision about your bike insurance renewal, ensuring you get the best value for your money and the coverage that meets your needs.

Not Updating Information

If your details or circumstances change, you should update Bajaj Allianz General Insurance Company during bike insurance renewal to ensure they remain valid. Failure to disclose changes can result in your policy cancellation, or it may not be valid when you need to file a claim. While updating the insurance policy, documents must include accurate personal information.

Ignoring No Claim Bonus (NCB) 

If you don't make any claims during your two-wheeler insurance policy period, you may be eligible for a No Claim Bonus (NCB) discount when you renew your policy. NCB is a reward insurance companies give to policyholders who don't file claims during a policy year. The NCB discount can range from 20–50% and is applied to the premium amount during renewal.

Overlooking Fine Print 

Reading the fine print of an insurance policy can help you avoid surprises during claims and save you time and money. The fine print contains important information, such as terms and conditions, disclosures, and exclusions, that are not included in the document's main body. Every insurance policy has a list of events, conditions, or scenarios where the policy's coverage may not apply. Carefully read the same to avoid inconvenience.

Skipping Renewal Check-Up

When reviewing your insurance coverage, you can reassess your needs, coverage, and insurer to ensure you get the best deal. You should review your insurance coverage regularly, even if you don't think your lifestyle or family circumstances have changed.

Conclusion

Renewing two-wheeler insurance online is a basic process. However, you may need more understanding and comprehensive research to do some of the blunders outlined in this article. So, stay aware while renewing your coverage and avoid the problems outlined in this post. Bajaj Allianz offers renewals for two-wheeler companies, including hero bike insurance renewals. Get in touch with our executives to get the best two-wheeler insurance.   *Standard T&C Apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.