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Difference Between Long-Term and Short-Term Two-wheeler Insurance


Written by Udit Varshney

Updated Mar 29, 2021

While both short term and long term two-wheeler insurance plans offer accident cover and security to the policyholder, you can read the article, to understand the basic point of difference between the two types of insurance plans, in order to make a wise and informed decision.

A two-wheeler insurance plan works as a financial safety net against any damages or losses caused due to any accident or mishap. The plan helps in recovering your losses, which are financial in nature and can arise because of any unfortunate event. In case you too are planning to purchase a two-wheeler insurance policy online, then with a wide range of insurance plans available in the market, you might be confused. Basically, there are two categories of insurance plans available i.e long-term and short-term plans. However, to decide the policy which would best fit your needs can be decided after understanding the basic points of differences between the two categories.

Difference Between Long-Term and Short-Term Two-wheeler Insurance

Long Term V/S Short Term Two-wheeler Insurance Plan

The basic difference between the long term and short term two-wheeler insurance plan is the duration of the policy. On one hand, a short term insurance plan offers coverage to your two-wheeler for up to 1 year, on the other hand long term insurance offers cover for up to 5 years. Apart from it, the few other differences are as follows:

  • Renewal Date of the Plan

For a long term plan, a policyholder is required to pay a premium only once in 3 or 5 years in order to save their policy from getting expired. While for a short term insurance plan, premium needs to be paid on an yearly basis.

  • Add-Ons

One of the advantages of having a short term insurance plan is you can include more add-on options alongside the basic insurance policy. These riders include zero depreciation, NCB protection, return to invoice, etc. Riders can be included every year in a short term insurance policy as compared to a long term insurance plan.

  • Cost Effective

A long term bike insurance plan is cost-effective in comparison to a short term bike insurance plan. This is because the policyholder is not required to pay a yearly premium, which can get increased by the Insurance Regulatory and Development Authority of India. Moreover, many insurance companies offer the policyholder with a discount on premiums paid against the long term bike insurance plans. In case, a policy buyer is looking for a cost-effective solution, then they should consider buying a long term two-wheeler insurance plan as it would help them in saving their money.

  • Flexibility

With a short term two-wheeler insurance plan, a policyholder can revisit or modify their insurance policy on an yearly basis and can also avail benefits of various discounts and offers. Or one can also opt for various add-ons like NCB protection, zero depreciation etc. Therefore, a better flexibility can be enjoyed with a short term insurance plan as compared to a long term insurance plan.

Final Words

Long term and short term two wheeler insurance plans have their own particular advantages. However, the choice for a right two-wheeler insurance plan is dependent upon your respective requirements. In case, in an insurance plan you are seeking cost effectiveness and time effectiveness, then you should go for a long term two-wheeler insurance plan, on the other hand, in case you are more concerned about precise protection and flexibility of options, then you should opt for a short term two-wheeler insurance plan.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.


Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More

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