If you have only just bought a two-wheeler, there’s no need for you to worry about buying a two-wheeler insurance policy. This is because the dealership will offer a policy along with the bike, albeit at an additional cost. But how can an individual with an old bike get a two-wheeler insurance? Now, that’s a question that doesn’t have many answers. In this page, we will tell you about the ways you can use to get two-wheeler insurance for an old vehicle.
Use the internet
According to the IRDA, there are close to 30 non-life insurance providers in the country, most of whom also offer two-wheeler insurance policies. Besides, all these insurance companies have a website which gives you all the information regarding their two-wheeler insurance offering. To get results, all you need to do is a cursory search of google with terms like ‘two-wheeler insurance’ or other such related phrases. Use the results you get and go through them carefully.
Compare them side-by-side
Just because you have found an insurance policy online doesn’t mean that you should go ahead with buying it. Instead, what you should do is compare a few policies side-by-side and check the benefits they offer depending on what you need. This will give you a clarity on the offers that suit you the best. An advantage of doing this is that it helps you pick out the best policy in terms of coverage and pricing.
Read the policy documents
Once you have decided on a policy, you will need to go through the fine print because an insurance policy document is like a pandora’s box and there’s no telling what clause appears out of it. Going through the policy documents will also help you understand the nitty-gritties of the policy you are buying.
Once you have finalised the policy you are buying, the next remaining step would be to apply for it online or through an agent, whichever means you find comfortable.
Things you need to know before buying an insurance policy for your old two-wheeler:
As you may already know, the terms offered for a new two-wheeler isn’t the same as the one offered for an old one. Here are a few things you need to keep in mind when buying a policy for your old vehicle:
Insured’s Declared Value (IDV) of your Vehicle:
An IDV is basically the sum assured for your vehicle. In other terms, it is the amount you get if your vehicle sustains a partial or total damage. IDV is basically calculated as the selling price of a vehicle minus the insurance and registration costs. However, as yours in an old vehicle, the IDV can be considerably lower. Insurance companies tend to do an assessment of your vehicle before deciding on the IDV. Your job is to make sure that the evaluator doesn’t get your IDV to a lower amount. To get a higher IDV, you would need to negotiate and also be ready to pay a slightly higher premium.
Age of the Vehicle:
As your vehicle is already old, there also the depreciation costs you need to worry about. Here’s a generic table that lists out the depreciation schedule for vehicles of different age:
|More than a year; less than 2 years||10%|
|More than 2 years; less than 3 years||15%|
|More than 3 years; less than 4 years||25%|
|More than 4 years; less than 5 years||35%|
|More than 5 years; less than 10 years||40%|
|More than 10 years old||50%|
While this table lists a more generic percentages, the actual depreciation costs may vary for insurer to insurer. Also, insurance companies use schedules such as this to determine the total premium you would have to pay.
Although, getting insurance for your old two-wheeler is not impossible, it still is a tedious, long drawn-out process. If you go through the right channels you will have a relatively smooth ride.