Different Types of Bike Insurance Policies

Once you decide to buy a two-wheeler of your choice, the

next decision is to choose a bike insurance policy that would

comply to your needs keeping your budget intact. To make a

right choice, you should be well aware of the different types

of motorcycle insurance available in the market.

Types of insurance

Liability insurance: This is the basic insurance policy that

covers any damage caused to the third party by your vehicle.

It covers physical injury, vehicle damage or property damage

of the third-party. The damage caused to your bike is not

covered under the liability insurance. In India, it is mandatory

to purchase liability insurance if you own any vehicle.

Comprehensive insurance: A comprehensive bike insurance

policy covers the third party liability and also provides for the

damage caused to your vehicle. The two main features of this

policy are:

Provides coverage to your vehicle against theft, fire,

accidents and natural calamity

Provides accidental coverage for self and third party

liability

This policy though covers interests of the rider but it does not

include collision insurance.

Collision insurance: This policy pays for the damage of your

bike in case your bike collides with any vehicle or object. The

damage to your vehicle can be enormous depending upon

the severity of the collision. In this case, it may a huge burden

for you to bear the repair cost of your vehicle. The insurance

company would be paying for the damages upto the extent

of the book value of the vehicle.

If you are young, single and have just started earning then it

is advisable to take comprehensive and collision insurance

coverage as it would save you from hefty expenses in case of

any misfortune. Insurance is not a luxury but a necessity as

the cost of living is increasing day by day and any unforeseen

financial burden would leave you stranded.

Read more about Motorcycle Insurance.