Difference Between Single and Multi-year Bike Insurance Plan

Bike Insurance Protects Financially & Legally Both

Bike insurance gives financial protection against any loss or damages to your bike due to accidents, theft, and even natural disasters. In India, it is mandatory to have third-party two wheeler insurance for bikes, as it financially protects against any injury to any third party, property, or loss of life.

Besides, riding a bike without insurance may lead to a hefty fineor imprisonment for up to 3 months, or even both. Therefore, a bike insurance plan effectively protects the bike owner from the financial burden of any mishap, theft, or natural and man-made disaster.

Single-year Bike Insurance

A Single-year two-wheeler insurance policy validates your insurance tenure for a year only. It needs to be revised every year, and hence it is quite a hassle as you need to keep an update on the expiry date. However, it gives you an option to change your insurer after a year if you do not like the services provided by your insurer.

Multi-year Bike Insurance

A Multi-year or Long-term two wheeler insurance insures your vehicle for three to five years. IRDAI has also made it mandatory to have a 5-year insurance cover for every new two-wheeler. A Multi-year policy locks you from any price fluctuation in the premium amount as you make payment only one time. If you are using a Single-year policy, it also gives you an option to upgrade your Single-year insurance policy to a Multi-year two-wheeler insurance policy at the time of existing policy renewal. 

Single-year Versus Multi-year Bike Insurance

Below we have given a detailed chart showing a comparison between Single-year and Multi-year bike insurance policies-

Which One is Beneficial for You? Single-year Policy or Multi-year Policy

As per the IRDAI, it is mandatory to buy long term policy or multi-year insurance for newly bought two-wheelers. Keeping in mind all the advantages and disadvantages of both the plans, Multi-year bike insurance is cost-effective and hassle-free from annual renewal, while Single-year insurance policies offer more flexibility when you renew the policy every year. However, it is maybe costlier than the Multi-year plan.

Therefore, if you are looking for a convenient and cost-effective option, then Multi-year bike insurance is a perfect choice for you. Otherwise, if you are looking for flexibility and limited protection, then a Single-year bike insurance policy is made for you.

Things to Keep in Mind Before Buying Bike Insurance 

Here are the few points you must consider before buying any type of insurance policy for the bike.

• Calculate Premium Online: You can calculate your bike insurance premium with the help of an online bike insurance calculator available on the internet before buying the policy. Choose a plan based on things like the age of the bike, location where you reside, engine's cubic capacity, etc. 
• Know Your Need and Budget: Usually, comprehensive bike insurance plans are customizable. But in the case of third-party insurance for your bike, you are restricted from the customization in the budget. Hence, choose a plan according to your need and budget. Also, we suggest you set a higher IDV for maintaining a budget. 
• Buy Bike Insurance Online: It is advised to buy an insurance plan online instead of offline. Moreover, you should compare the same type of plans online. This is how you get to know the coverage under a plan and services available at a particular cost. Also, you get low-priced plans and added benefits when you buy online bike insurance.
• Know About Your Insurer:It is very important to know about your insurer for a faster claim process and hassle-free services. You must verify the authenticity of your insurer by checking their customer reviews and feedback on Google and social media sites. Choose an insurance company that delivers excellent customer service, a seamless claim process, and a lower premium.

Conclusion

Since we have given a detailed comparison between Single-year and Multi-year insurance for the bike, you can easily decide the right insurance policy for you. Both the insurance policies offer protection and accident cover. So, choose a plan according to your need and budget.