The question that everyone who owns a bike asks is whether buying a full or comprehensive bike insurance policy is really necessary. Of course, they will argue that they already have a motorbike cover in place, as they have purchased it at their first shop or local dealership. However, is there really any need to purchase another insurance policy?
In the first place, it is essential to understand just what type of protection you do need. For example, if you have added a new bike onto your existing vehicle, you will require motorbike insurance to protect your investment against any third-party claims. Full coverage is designed to cover both physical damage and injury claims made against you. It is important, however, that you remember that there are actually two types of policies available to cover bike accidents. You can choose to either include physical damage and injury or just the financial costs incurred by injuries.
Comprehensive insurance policies can provide cover for almost any accident that may occur. This is why they are commonly taken out by those who live in more rural areas, where there is not usually a problem with accidents caused by road surfaces, weather conditions and animals. Comprehensive insurance policies will usually pay up to the limits of the policy document, which is usually stated as a maximum amount that the insurer will pay out. Therefore, if the limit on the policy document is exceeded, the insurer will have no choice but to pay out the full amount. When you are buying a comprehensive bike insurance policy, ensure that the premiums that the insurer charges are transparent and that there are no hidden costs.
Another type of motorbike insurance policy that many people take out is a limited usage policy, sometimes known as a written off policy. With this type of policy, the rider agrees to cover all repair costs to the bike after it has been written off. In return, the insurer agrees not to use the bike for a specified number of months. However, the insurer is under no obligation to sell the bike or pay out benefits should the bike need repairs beyond the agreed limit. If the owner takes out a limited usage insurance policy, they are only entitled to claim up to a specified limit for repairs to the bike.
Third Party policies are often taken out for those riders who have purchased a brand new bike and want to protect the costs incurred when it is involved in an accident. These policies cover the costs incurred by the other party when an accident occurs. The insured pays out towards the cost of medical bills for the third party and the damage caused to their car. If the third party is unable to pay these costs, then the insurer has to pay them out. However, there are certain scenarios where the third party is not covered.
An accident where the bike is stolen and recovered, but the owner does not have sufficient insurance cover, or the owner is within the minimum period allowed to claim under the two-wheeleder insurance policy and as a result opts for the full collision cover. In such cases, the owner has to pay the difference between the actual price of the stolen bike and the two-wheeler insurance premium. This ensures that the owner is protected against any eventuality that might arise from the theft of their vehicle.
For those individuals who wish to take out a more comprehensive two-wheeler insurance policy, they have the choice of taking out either third party or comprehensive cover. A comprehensive policy can also be taken out for the same vehicle and covers costs for accidents not only involving the bike, but also other vehicles that may be involved in the accident. It also provides cover for damages caused to the third party’s car. However, if the bike is used for commercial purposes, the two-wheeler insurance policy may not always be the best option. Some insurers provide two-wheeler insurance online for business bikers rather than those using their bikes as private transportation.
When it comes to the types of insurance policies available, there are two types that are commonly taken out, the first type being the Comprehensive insurance policy. The second type of policy is the Collision and Comprehensive insurance. Comprehensive insurance provides cover for all kinds of damages that can occur to an insured vehicle and includes damage caused by collisions with other vehicles, vandalism and acts of nature. Whereas the Collision insurance coverage will only cover for damages to an insured vehicle and usually does not cover for collision damage.