After a year of using your two-wheeler without you or any other person causing any damage to it, you may think that you don’t need to renew your expiring insurance policy. But can you guarantee that just because you haven’t had any issue so far, you won’t have any in the future?
This is why two wheeler insurance renewal is necessary. Just like with any other insurance, you never really know what could happen and when it could happen. It is against uncertainties like these that insurance policies come to use. Once your policy expires, if there is ever any damage to your vehicle, repairing it will cost you a lot more than the annual premiums you would have paid towards your two wheeler’s coverage had you renewed your policy. When you include the fines you have to pay during police checks to your cost, you will realize why renewing your policy is the best option for you.
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When Does A Two Wheeler Insurance Renewal Happen?
Usually, at the time of purchasing a two-wheeler, you are given an insurance policy that provides you coverage for one year. In some cases, this period may also be longer. A two wheeler insurance renewal happens close to the expiry of your existing policy and extends your coverage by another year or more.
In an ideal situation, it is advisable to renew your existing policy at least 45 to 60 days prior to its date of expiry to avoid making additional payments. But renewing your policy is no longer a tedious procedure. Nowadays, with insurance brokerage services like Coverfox.com, it takes just the click of a button to complete your renewal online.
However, it may so happen that despite multiple reminders, you are unable to renew your policy on time. In the event of this occurrence, some insurance companies still allow you to renew your lapsed policy within a certain period from the date of expiry. Alternatively, you can also take a new policy to cover your vehicle. Further, if you do this within 90 days of the expiry of your old policy, your no-claim bonus, if any, can be transferred to your new policy.
It is important to keep in mind that waiting till expiry to renew your two-wheeler insurance is not advisable. It will not only cost you more to get a new policy than to renew your old one, but you will also have to go through the vehicle inspection process again and subject yourself to any risk that presents itself during the period where you are uninsured.
Policy Period in Two Wheeler Insurance Renewal
When renewing your insurance policy, there are two period options to take into consideration. Once this decision is made, all that is left is the renewal!
Single Year Renewal:
Under this option, you can choose to renew your existing policy for a period of one year and then renew it again upon expiry. This option is most suitable to those who don’t wish to block a lot of money at once or are unsure about retaining the ownership of their vehicle after this duration.
Multi-Year Renewal:
Insurance companies are now providing long-term policy renewals up to three years for two wheeler insurance. This is far more beneficial than a single year renewal due to multiple reasons, such as:
1. Standard Premium
Per IRDAI guidelines, the insurance premium increases every year. However, this is not applicable to long-term insurance policy renewals. Though the premium has to be paid at once, it is a fixed amount that doesn’t fluctuate, unlike in the single year policy option.
2. Convenience
It is completely stress-free to make a one-time payment and then forget about your insurance policy for a few years. Further, you don’t have to keep checking for the due date of expiry or worry about policy lapses either as you have enough time on your hands to sit back and relax.
3. Better Coverage
A three year insurance policy renewal comes with a third party liability cover which is not included in the single year renewal option. This means that any loss caused to your vehicle either due to you, a third-party, or even natural phenomena are all insured and will be covered by the insurance company to a large extent.
The Final Summation
Online two wheeler insurance renewal takes less than a couple of minutes to complete. Procrastinating your renewal for the sake of these two minutes can cost you great repercussions, so it is always better to get it done ahead of time. Coverfox.com is one website that provides you accurate comparison of different two wheeler renewals plans a complete understanding of your policy, so that you can take an informed decision without feeling any pressure. So, make sure to check your policy’s expiry date today!