What are the Similarities between Two Wheeler & Four Wheelers Insurance?

3 min read

Buying a car is one of the most exciting and fulfilling things that you can do in your life. Once you have saved enough money, it’s time to buy that two-wheeler or four-wheeler that has been on your mind for years. The next step is to protect this investment with auto insurance. Buying auto insurance for two-wheelers and four-wheelers may seem difficult at first glance but they are similar in more than one way. This blog will help you understand the similarities between two-wheeler bike insurance and four-wheeler car insurance plans

Similarities between two-wheeler and four-wheeler auto insurance plans

1. Coverage

Both car insurance and two-wheeler bike insurance plan coverage are of two types – standalone own damage or third-party liability coverage. The former provides coverage against damages to your own vehicle while the latter covers you from the legal liability of paying compensation to a third party if the insured vehicle damages their property. In India, third-party liability automobile insurance is mandatory for all vehicles.

If you are looking for total coverage, you may choose comprehensive auto insurance which provides coverage of both third-party liability and own damage. Another option is bundled auto insurance.  Bundled car insurance includes 3 years of third-party liability and 1 year of own damage. Bundled two-wheeler bike insurance includes 5 years of third-party liability and 1 year of own damage. 

2. Exclusions

Both car and two-wheeler bike insurance plans have some general exceptions to the policy. Intoxicated driving and accidents outside country limits are some of them. You should keep these factors in mind before submitting any claim requests, since you may be unable to get compensation if your claims fall into one of these categories.

3. Riders

If you’re looking for a way to increase the coverage of your auto insurance plan, look no further than add-ons. Add-ons are a great way to increase coverage of a basic car insurance plan by paying a slightly increased premium. Riders are available for both two and four-wheelers and can be purchased separately or as part of an upgrade package if they meet your needs. 

4. IDV

IDV stands for “Insured Declared Value,” and it is the market worth of your vehicle as well as the amount covered for insurance purposes. The IDV is determined at the start of a term of the policy and is dependent on many factors including the stated selling price, brand, series, and so on. 

5. PA Cover

PA stands for Personal Accident and this type of insurance protects the owner/driver of the insured vehicle in case of injury-related expenses. It can be included as a part of your car or two-wheeler bike insurance plans and if you’re not sure whether or not your current policy has this option, we recommend contacting your insurer for clarification!

6. NCB

When you purchase a car or bike insurance plan, it is common for the provider to offer an NCB bonus. This is a great incentive that will give you more savings! The insurer provides an added discount every year you go without raising claims. The rate starts at around 20% in the first year and builds up to 50% after five consecutive years.

7. Claim Procedure

The auto insurance claim procedure is the same for both four and two-wheeler insurance plans. Both cashless and reimbursement methods of claim settlement are provided to the customers.

Also Read: Negotiating a Lower Car Insurance

Conclusion

Protect yourself and your family from the potentially devastating costs of a large accident claim by buying adequate car or bike insurance coverage. Fortunately, there are many great options available to you that offer different levels of protection for various situations at prices suited to your needs. Compare insurance plans with excellent claims service so you can make an informed decision about which option is best for you.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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