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Wednesday, May 22, 2024

Should You Renew Two-Wheeler Insurance or Switch to a New Plan?

According to the Motor Vehicles Act of 1988, every two-wheeler owner must carry at least a third-party insurance policy. Failing to do so will result in hefty fines or severe punishments. In addition to that, while purchasing a new bike, the owner is expected to purchase a five-year long-term plan and this is not an option. However, if you are not satisfied with your existing insurer or insurance plan, you switch at any time during the course of your policy period, regardless of the type of coverage you have. Read further to know more about renewing and switching a two-wheeler insurance policy.

Why Should you Switch to a New Two-Wheeler Insurance Policy?

During the time of renewal, you can either change, modify, or renew your bike insurance policy. You can also choose to switch to a new insurer or insurance policy. This is because new and inexperienced bikers generally look for insurance policies with the cheapest premium. Only after acquiring the plan do they discover that they need to upgrade it because the acquired coverage is insufficient for them. Listed below are some of the reasons why policyholders change or modify their existing plan or switch to a new two-wheeler insurance policy.

  1. Third-party insurance does not offer coverage for own damage.
  2. The add-ons or covers do not meet the policyholder’s needs.
  3. Paying an enormous price for little coverage.
  4. The particular policy does not provide security or peace of mind.
  5. Dissatisfied with the after-sales services provided by the current insurer.

When Can You Modify, Change or Switch your Two-Wheeler Insurance?

Insurance providers allow you to switch insurers in the midst of the policy term if you are dissatisfied with your existing coverage. You can also ask them for a refund. It is not mandatory for you to continue with the current insurer during the renewal process. As a result, you can do your research and find better policies or switch to other insurers. Here are some of the scenarios during which you might consider switching your insurance or insurer.

  1. Policy Renewal Process: You can switch to a different plan from any insurer after the policy term is up. You can upgrade to a comprehensive insurance policy if your third-party coverage is insufficient. You must compare your policies before purchasing to make an informed decision. Also, you don’t need to be concerned about your No-Claim Bonus (NCB), because even if you change insurers, it will remain untouched.
  2. During the Policy Period: Throughout the duration of the policy, you can alter your plan or insurer. But, changing the plan while your insurance is still in effect is not advised. However, if you are dissatisfied with the features, advantages, premium cost, or coverage of the plan, you can move to a different plan or insurer. Cancel the current plan and purchase a new one. Also, until your new plan is under process, you cannot ride your bike.
  3. Purchasing a New Bike: You may not be able to move your policy coverage from your old bike to your new bike when you acquire a new one. Since you would require a new insurance plan to be purchased, you could consider a different or new insurer.
  4. Change of Ownership: It is important to remember that only the bike is covered under a bike insurance policy. So, if you sell it, you need to transfer the ownership of the bike and the insurance. Then, renew or switch your insurance plan, as per your preference.
  5. Policy Expiry: If a policy has expired or lapsed, you must first get in touch with your insurance company if you wish to renew a lapsed coverage. At this point, you can change, modify or switch plans or insurers, because the coverage has already expired.

Uneeb Khan
Uneeb Khan
Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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