INTRODUCTION

Buying a two-wheeler is often an emotional decision, but buying the right insurance for it should always be a logical one. With rising traffic congestion, accident risks, and repair costs, insurance is no longer just a legal formality- it is financial protection you cannot ignore.

Many riders purchase a policy in haste, focusing only on price, and later regret it during claims or renewals. In fact, two wheeler insurance plays a crucial role in safeguarding both your vehicle and your finances, especially in unforeseen situations.

To help you make an informed and confident decision, here are 9 important tips to buy two-wheeler insurance that every rider in India should know.

1. Understand the Types of Two-Wheeler Insurance Policies

Before buying a policy, understand the difference between:

  • Third-Party Insurance --Mandatory by law, covers damage to third-party life or property.
  • Comprehensive Insurance – Covers third-party liability plus own-damage to your bike.
  • Standalone Own-Damage Policy – Covers only your vehicle, usually paired with a long-term third-party plan.

If your budget allows, a comprehensive policy offers broader protection and peace of mind.

2. Choose the Right Coverage Based on Your Usage

Your riding habits should determine your insurance coverage. If you commute daily in heavy traffic, the risk of accidents is higher. Similarly, long-distance riders or those parking in open areas face increased exposure to damage or theft.

Opt for coverage that matches:

  • Frequency of usage
  • Parking conditions
  • Road and traffic environment

Avoid underinsuring just to save a few rupees on premium

3. Compare Premiums, Not Just Prices

Premium comparison is important, but price should not be the sole deciding factor. Two policies with similar premiums can offer very different benefits.

While comparing, check:

  • Coverage inclusions and exclusions
  • Claim settlement process
  • Deductibles
  • Availability of add-ons

A slightly higher premium may provide significantly better protection

4. Check the Insured Declared Value(IDV) Carefully

IDV is the maximum amount your insurer will pay in case of total loss or theft. Many buyers unknowingly accept a lower IDV to reduce premium, which results in lower claim payouts.

Ensure:

  • IDV reflects the actual market value of your bike
  • It is neither overstated nor undervalued

A correct IDV ensures fair compensation when you need it most

5. Select Add-Ons That Actually Add Value

Add-ons enhance coverage but should be chosen wisely. Common useful add-ons include:

  • Zero depreciation cover
  • Engine protection cover
  • Roadside assistance
  • Return to invoice cover

Avoid unnecessary add-ons that do not align with your bike’s age or usage, as they only inflate the premium.

6. Check Claim Settlement Reputation

A policy is only as good as its claim settlement experience. Many riders realize this only when their claim gets delayed or rejected.

Before buying:

  • Review claim settlement efficiency
  • Understand documentation requirements
  • Check turnaround time for claims

Smooth claims reflect an insurer’s reliability and customer-first approach

7. Understand Policy Exclusions in Detail

Most claim disputes arise due to lack of awareness about exclusions. Common exclusions include:

  • Riding without a valid license
  • Drunk driving
  • Wear and tear or mechanical failure
  • Damage outside geographical limits

Reading exclusions helps set the right expectations and prevents unpleasant surprises.

8. Do Not Ignore No Claim Bonus (NCB)

NCB is a valuable reward for safe riding. It can reduce your premium significantly over time.

Important points:

  • NCB belongs to the policyholder, not the vehicle
  • It can be transferred when switching insurers
  • Even one small claim can reset it

If the repair cost is minor, consider paying out of pocket to retain your NCB.

9. Renew Your Policy Before It Expires

Policy lapse can lead to:

  • Loss of NCB
  • Vehicle inspection requirements
  • Higher premiums
  • Legal penalties

Set reminders and renew on time to ensure uninterrupted coverage and financial protection.

Conclusion

Buying two-wheeler insurance is not just about compliance; it is about making a responsible financial decision that protects you against unexpected losses. By understanding coverage options, choosing the right add-ons, and evaluating policy terms carefully, you can avoid common pitfalls and enjoy stress-free riding.

Platforms like Square Insurance simplify the buying process by offering transparent comparisons, expert guidance, and customer-focused solutions that help riders choose policies aligned with their real needs—not just the lowest price.

A well-informed decision today can save you significant money, time, and frustration tomorrow.

Frequently Asked Questions

1. Is two-wheeler insurance mandatory in India?

Yes, third-party two-wheeler insurance is legally mandatory under Indian motor laws.

2. Which is better: third-party or comprehensive insurance?

Comprehensive insurance is better as it covers both third-party liabilities and damage to your own bike.

3. Can I buy two-wheeler insurance online?

Yes, buying online is convenient, transparent, and often more cost-effective than offline modes.

4. What happens if my two-wheeler insurance expires?

You may face legal penalties, lose NCB benefits, and your vehicle may require inspection before renewal.

5. Is zero depreciation cover necessary for all bikes?

It is highly beneficial for new or expensive bikes, but may not be cost-effective for older vehicles.