When it comes to safeguarding your prized possession – your motorcycle – against the unpredictable twists and turns of life, bike insurance emerges as the trusty shield.
Amidst the plethora of terms and conditions that come with bike insurance, one term that often leaves riders scratching their heads is "deductible." So, let's unravel the mystery behind bike insurance deductibles and understand why they matter.
What is a Bike insurance deductible?
In simple terms, a deductible in bike insurance refers to the amount of money you, as the policyholder, agree to pay out of pocket towards the cost of repairs or claims before your insurance coverage kicks in. Think of it as your financial stake in the game. Deductibles serve as a means to share the risk between you and your insurance provider, with higher deductibles typically resulting in lower premiums and vice versa.
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Do Bike insurance deductibles affect your Bike insurance premium?
The answer is yes, for sure the deductible amount chosen by the policyholder has a direct impact on the Bike insurance premium. In case, the policyholder chooses to pay a high Bike insurance deductible amount, in that case, the premium cost will be low, and on the other hand, if the policyholder chooses to pay a low deductible amount, for that matter the premium cost will be higher. Henceforth, it is important to opt for a balanced Bike Insurance Policy where the deductible amount and premium are properly managed, not putting any extra burden on the policyholders.
What are the types of Bike insurance deductibles?
In India, there are two major types of Bike insurance deductibles which are compulsory deductibles and voluntary deductibles in the Bike Insurance Policy. Let’s learn about them in brief:
- Compulsory Deductible in Bike Insurance Policy
A Compulsory Deductible is the portion of the claim that is deducted by the insurance company over each claim that is submitted by the bike owner. In compulsory deductible, the amount is already fixed for the insurance policy and therefore, the amount must be paid before the raised claim is settled. Notably, for the two-wheelers, the compulsory deductible is applicable and fixed at Rs. 100 for every claim raised by the policyholder.
For example, if a bike meets with an accident and the total for repair and replacement is Rs. 3000, then first you have to pay Rs. 100 and then the insurance company settles the claim as per its terms and conditions.
- Voluntary Deductible in Bike Insurance Policy
The Voluntary Deductible is different as it is optional for the policyholder and allows him/her to choose the amount he/she wants to pay as Deductible while settling claims. Also, it is important to mention that in any Bike Insurance Policy, if a policyholder has the option of a Voluntary Deductible, he/she can also choose to pay a higher amount as a deductible which will further lower the Bike insurance premium cost, making the insurance policy much affordable for them. While searching for Bike Insurance Online, you can easily choose the best policy for your two-wheeler with a Voluntary Deductible and pocket-friendly premium cost.
What is the difference between a Compulsory Deductible and a Voluntary Deductible?
The difference between a Compulsory Deductible and a Voluntary Deductible is evident based on their nature, meaning, affordability, and objective. Though, both are Deductibles but different in their domains. Some of their major differences are as follows:
- Based on the Nature:
Compulsory Deductible is mandatory to be paid as a portion of your claim raised with the insurance company.
On the contrary, Voluntary Deductible is optional to be paid, while settling claims with the insurance company. The policyholder has the freedom to increase or decrease the amount to be paid as a Voluntary Deductible.
- Nature of objectives:
In the Bike Insurance Policy, the Compulsory Deductible greatly assists in preventing the policyholder from raising minor claims.
On the other hand, the Voluntary Deductible aids in availing the discount over the bike insurance premium amount paid to the Auto Insurance company.
- How affordable are both?
The Compulsory Deductible is quite affordable as it is determined by the Insurance Regulatory and Development Authority of India (IRDAI).
In Voluntary Deductible, the policyholder has the option to choose the amount that he wants to pay as a deductible. Thus, he can choose the Voluntary Deductible according to his affordability, keeping in mind that the higher the amount the less the Bike insurance premium.
Factors to keep in mind while choosing Bike insurance deductibles
While opting for the best Bike Insurance Policy for your vehicle, it is important to choose the right Bike insurance deductible, which only depends upon the needs of your vehicle. However, a policyholder needs to keep the following things in mind before selecting a deductible for his policy:
- Financial ability: Assess your ability to pay the Bike insurance deductible, if you can pay a good amount as a deductible, then go for the Voluntary Deductible which allows you to pay a higher amount as a deductible and reduces your Bike insurance premium, in return.
- The number of claims raised in Bike Insurance Policy: Another important factor is the frequency of claims raised by the policyholder. If you rarely make claims in your policy, then opting for a Voluntary Deductible with a higher amount is the right choice.
- Value of your bike: It is important to consider the value of your bike before choosing the Deductible in your Bike Insurance Policy. If your bike is new or high-value then you can opt for a lower deductible, while if your bike is older or low-value, then going for a higher deductible is the right choice.
Benefits of Taking Bike Insurance from PBPartners Insurance Agent
In the realm of bike insurance, where every decision counts towards safeguarding your two-wheeled companion, understanding the nuances of deductibles can make a world of difference Connect with PBPartners PoSP insurance agents, your trusted allies in navigating the intricacies of bike insurance deductibles and maximizing the benefits of your coverage.
PBPartners PoSP agents stand by your side every step of the way. They provide invaluable assistance in navigating the claims process, offering guidance on how to expedite the resolution and minimize disruptions to your life. Whether it's documenting the incident, liaising with the insurance company, or advocating for your rights, PBPartners PoSP insurance agents ensure that your claims experience is smooth and hassle-free.
Conclusion:
To secure your two-wheeler, it is very important to get a good Bike Insurance Policy that covers its repairing and replacement expenses. Make the right choice by selecting the best-suited Bike insurance deductible in your policy. Consider all the factors including the value of your bike, your affordability, and the number of claims raised by you in a policy, and then only opt for the Compulsory Deductible or Voluntary Deductible in your insurance policy. Your vehicle is important, choose the insurance plan for it.
Frequently Asked Questions (FAQs):
Que: How does a Bike insurance deductible affect the insurance premiums?
Ans. If you pay a higher Bike insurance deductible, then you will have to pay a low Bike insurance premium but if you pay a low Bike insurance deductible then you will have to pay a high premium.
Que: How can a person select the right Bike insurance deductible for his policy?
Ans: By keeping in consideration a few factors including your budget, your bike’s value, risk tolerance, number of claims raised by you and others.
Que 1: Can a policyholder change his Bike insurance deductible after purchasing the Bike Insurance Policy?
Some insurance companies allow you to change the Bike insurance deductibles even after purchasing the insurance policy, while some don’t allow it. It depends upon the terms and conditions of the insurance company.
Que 2: Do all bike insurance policies have a system of Bike insurance deductibles?
Indeed, the Bike insurance deductibles are standard and most of the policies do have them.
Que 3: Can a policyholder negotiate over a Bike insurance deductible with the insurance company?
At the time of purchasing the Bike Insurance Policy, the Bike insurance deductibles are usually set and thus, are non-negotiable afterward.
Que 4: Does the Bike insurance deductible cover theft?
Yes, the Bike insurance deductible does cover theft, and this applies unless it is waived off by your policy.
Que 5 Is there any situation where the insurance companies waive the Bike insurance deductible?
Under specific circumstances, some policies do waive the Bike insurance deductibles, which may include hit-and-run accidents or others.
Que 6 If I have a high-value bike which was recently purchased, in such a case which Bike insurance deductible is best for my Bike Insurance Policy?
For a high-value bike, it is best to opt for a Voluntary Deductible, as it allows the policyholder to pay a higher deductible which in return lowers the Bike insurance premium.
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