You frequently have a tendency to neglect to renew your auto insurance. Are you aware of the numerous consequences that result from this? It prevents you from making modifications and changes in the terms and conditions listed in your bike insurance policy, in addition to not keeping your vehicle appropriately insured.
The good news is that you can now avail of multi-year insurance, which takes care of the burden of needing a bike insurance renewal policy. According to the majority of surveys, bike owners frequently forget to renew their two-wheeler insurance, although automobile owners seldom forget to do so. This has led to the development of multi-year vehicle insurance plans for bike owners by insurance companies.
Depending on the type of your vehicle, the majority of these two-wheeler insurance policies cover your car for a term of three years. There are some similarities between single-year insurance policies and multi-year policies, but overall, they differ. Let’s discover these distinctions and always remember how to renew expired bike insurance online.
Single-year policies and multi-year policies differ from one another.
Although the two types of policies’ coverage are of a similar nature, there are several distinctions between them that make multi-year insurance more comprehensive and attractive. These are a few of them:
- Coverage time frame: As the name implies, single-year policies provide coverage for a single year, whereas multi-year policies provide coverage for up to three years.
- Renewal frequency: Multi-year policies only need to be renewed once every three years, whereas single-year policies must be renewed annually.
- Increases in premium: When a single-year two-wheeler insurance coverage is renewed, the premium is increased annually. However, the same premium rate will be in effect for three years for policies with multiple years. Additionally, there will be no market changes that could affect this sum. *
- No Claim Bonus: Unlike with a single-year insurance, the No Claim Bonus only is diminished to a certain extent when a new claim is filed. *
- Procedures for cancellation: If you decide to cancel your one-year bike insurance, all prior claims you have made will not be reimbursed. However, if you purchased a multi-year insurance policy, you will receive a prorated refund. Based on how many years are left in the multi-year insurance policy, this sum will be determined. *
When to choose a one-year policy
Even while multi-year policies have become more popular recently, it is best to choose single-year insurance if your finances are not steady and strong enough to support a three-year financial commitment. If a two-wheeler is merely a short-term option for your commute and you want to soon upgrade to a four-wheeler, you might also take into account this policy. The least expensive two-wheeler insurance currently on the market is the one-year policy.
Choosing multi-year insurance
There are several reasons why multi-year insurance plans have grown in popularity among two-wheeler owners in recent years. The following are some of the most popular justifications for choosing this option:
- Less stress because the bike insurance renewal is not required every three years.
- Because the premium is only increased once every three years upon renewal, the premium is lower than for a single year.
- Avoid taking the chance of riding a bike for even a day without insurance.
- Additionally offered is a concession on the own damage premium.
- Even before the policy’s term is over, you can cancel it and receive a sizable return.
Therefore, it makes more sense to get long-term two-wheeler insurance coverage for a stress-free experience handling the policy as well as a safe riding experience. In conclusion, both single-year and multi-year insurance have benefits and features. Always think about your present financial situation and which features you value more highly when choosing the type of coverage to purchase.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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