Everything You Need To Know About Second Hand Bike Insurance
Updated On Mar 16, 2021
Just like a new bike, you also need to get insurance for a second-hand or used bike. Read on to know the benefits of insuring a second-hand bike and the tips to keep in mind during purchase of insurance for your used bike.
For many commuters, two-wheelers have become an essential part of travel. A significant part of purchasing a second-hand bike is its insurance. Two-wheeler insurance for second-hand bikes is identical to one purchased for a new bike.
Why Should You Get Your Second-hand Bike Insured?
Bike insurance is not only an obligatory document on your second-hand bike/two-wheeler, but it provides other advantages.
- Third-Party Risks: Third-party liability insurance protects you against any legal liability resulting from third-party negligence/injuries. The second-hand bike/two-wheeler insurance covers the amount you have to pay for accidents/injuries from third parties. Therefore, you are protected by two-wheeler insurance against any damage to third parties or their land.
- Legal Obligation: In compliance with the 1988 Motor Vehicles Act, when riding on public roads/highways, one should carry bike insurance. Together with the driving license, registration certificate (RC), and emission certificate, it is a mandatory requirement that must be carried by the rider.
- Own-Damage Cover: You can claim for your harm with comprehensive two-wheeler insurance. You can claim for the repair costs in the event of damage to the bike/two-wheeler or injuries to the insured caused by an accident. The comprehensive policy also contains third-party risks as well. This makes buying the comprehensive cover attractive.
- Add-On Covers: There are add-on covers for second-hand bikes/two-wheelers too, similar to a new two-wheeler/bike insurance scheme on a new vehicle. They provide additional advantages and serve as a comprehensive cover for your bike. Add-on covers are effective for second-hand bike insurance which protects liabilities that are not protected by the comprehensive policy/third-party policy.
Things to Keep in Mind When Insuring a Second-Hand Bike/Two-Wheeler
Here are some important things that you must be aware of when buying insurance for your second-hand bike/two-wheeler
- Make sure the current RC is in the name of the new owner.
- Check the Insured Declared Value (IDV), which is an estimated calculation of the bike's present market value. This is the Insured Amount, paid in the event of a complete loss.
- The higher the coverage and lower the premium would give the second-had two-wheeler/bike the highest insurance coverage.
- To benefit from a rebate, if you have an existing bike/two-wheeler insurance policy, presumably on the two-wheeler/bike you recently sold, then you will get the No Claim Bonus (NCB) transferred.
- There are many add-on covers to pick from; these add-ons provide regular comprehensive insurance plus extra benefits.
- When you switch your bike insurance company, research new insurance providers, their performance, reliability, efficiency, and offerings before selecting the right insurance plan for your second-hand bike/two-wheeler.
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.