Driving a two-wheeler can be quite liberating. Besides letting you beat the daily traffic woes or giving memorable road trips, they also acquire sentimental value as the years go by. Many people hold onto their old bikes as they give them a ride down memory lane.
As these bikes hold such an important place in our lives, we must take steps to safeguard them. While they may be a bit old, you can always get bike insurance for your old two-wheeler. Let’s look at how to get two-wheeler insurance for your old bike in a little more detail.
Old two-wheeler insurance
It is well-known that old motorbikes aren’t that safe to drive unless they have been handled with care and serviced regularly. If you have a two-wheeler that is more than ten years old, it will be considered old. Depreciation on two-wheelers starts immediately after the purchase.
Old two-wheeler insurance is a bike insurance policy for an old bike subject to its depreciation value. To make the process smooth for customers, bike insurance companies offer online services through their websites. For example, if you have decided to buy the TATA AIG two-wheeler insurance, you can do so by visiting their official website.
Importance of getting insurance for old bikes
A bike insurance policy is handy for the following eventualities:
- Any damage to the bike because of external circumstances like fire, natural disasters etc.
- Liabilities for damage to a third party in an accident involving your bike.
- Your vehicle is stolen.
- Financial liabilities for any injuries to a third party because of an accident involving your bike.
Therefore, it is important to get old bike insurance for your vehicle. However, you must consider the following aspects before buying an old bike insurance policy:
- Depreciating IDV of bike
Old bikes will have a low Insured Declared Value (IDV). IDV is the highest sum assured that an insurance company will provide based on the two wheeler’s current market value. This amount will be paid if your bike is stolen or damaged beyond repair. The IDV is estimated after deducting the depreciation from the invoice price of the manufacturer.
If you have made any modifications to the bike, the depreciation and price of your bike are calculated separately. Therefore, for a policy on a new two-wheeler, its IDV equals its purchase value. As the years go by, the bike’s value depreciates and the vehicle’s IDV also becomes low.
Add-ons are additions to the insurance policy to get an enhanced coverage from the plan. Add-ons will help you get insurance coverage for specific situations. Including add-ons to your plan will lead to a higher bike insurance cost. You can also add rider benefits to your insurance policy to get coverage for road tax and registration amount.
With this, you can add the total coverage for your bike, which is up to 15 years old. You can also lower the bike insurance premium without lowering your policy’s coverage by refraining from making modifications or avoiding filing small claims.
- Low premium
As the IDV falls, the bike’s insurance amount will also go down. But you must not set a lower IDV for your two-wheeler insurance for paying a low premium. Furthermore, setting a low IDV may not help you financially if your vehicle gets damaged or stolen. Thus, mentioning the correct age and IDV of your bike will help you in the long run.
Factors influencing the premium on your old bike
The premium of two-wheeler insurance policies are calculated based on the make and model, IDV, accessories added to the vehicle, claims history, etc. Insurers offer an insurance calculator on their websites to help customers decide on their acceptable premium costs.
For old two-wheelers, the following bike insurance details are considered to get quotes for premium:
- Engine capacity of the bike
- IDV of the bike
- NCB till the date of insurance
- Age of the bike
Summing up, bike insurance policies help you get peace of mind even though your vehicle has many years on it. It helps you protect your prized possession from different unfortunate events like accidents or theft. It would be best to get the insurance policy for your two-wheeler to ensure you can ride your vehicle without any stress.
The ‘People Also Ask’ Section:
- How do I insure an old bike?
To insure your old bike, you must go online and compare the different insurance plans available for old bikes. To pick the most optimal insurance plan for your bike, you must understand your insurance requirements and compare the different plans online to pick the perfect plan for yourself.
- Is bike insurance mandatory after 10 years?
Yes, if you wish to drive your vehicle on the road, you must get a valid insurance plan for your bike. As per the Motor Vehicles Act, it is a legal requirement for all vehicles to have a valid insurance plan.
- What are the documents required for bike insurance?
The documents you will need for bike insurance are:
- Identity proof
- Address proof
- Registration certificate
- Passport size photographs
- Which insurance is required for two-wheelers?
All bike owners in India require a third-party insurance policy. With a third-party plan, you will get financial assistance for any liabilities to third parties for any damage caused by your vehicle.