latest posts

111,151FansLike
900FollowersFollow
1,075FollowersFollow
22,600SubscribersSubscribe

Third-Party vs Comprehensive Cover: Guide for Purchasing Two-Wheeler Insurance

Two-wheelers are among the most efficient and convenient methods of travelling. They fit easily through narrow lanes, can be used for moving through heavy traffic and can be parked anywhere. They also help us deal with our daily commutes and remove our dependence on public transportation.

However, two-wheelers are quite prone to accidents, damages and theft. One of the most optimal ways to protect our bikes is through a bike insurance policy. But should we opt for comprehensive bike insurance or third-party bike insurance?

Both the insurance plans are designed to provide two-wheeler insurance coverage to you. However, they both have certain differences. Therefore, if you’re looking to purchase bike insurance, you must learn about the difference between the two. To understand their differences, let’s look at them individually first.

What Is Third-Party Insurance?

A 2-wheeler third-party insurance plan is designed to cover any third-party risks that you may face. It will cover the damages caused to the vehicle of a third party and the legal or financial liabilities that arise out of an injury or the death of a third party.

It is a basic form of insurance that ensures the protection of third parties and provides financial safeguard to the owner-driver of the insured two-wheeler. If you’re a bike owner, getting third-party insurance cover is a legal mandate as per the laws. While third-party bike insurance is optimal for protecting others around your bike, it will not offer you any coverage if you’re injured or if your bike gets damaged.

What Is Comprehensive Insurance?

A comprehensive bike insurance plan will include third-party insurance coverage and coverage for any damages that you may face. If you get injured, or your bike faces any damages, the comprehensive plan will cover the financial expenses of these losses.

With the comprehensive bike insurance plan, your bike is covered from losses that may arise out of natural disasters, man-made disasters, accidents, thefts, etc. This way, you can protect your vehicle and the third parties through a single plan.

Third-party vs Comprehensive Bike Insurance

Listed below are some of the differences between the two types of bike insurance plans:

Coverage: A third-party plan’s coverage is limited as it will only cover the damage caused by you to a third-party vehicle. On the other hand, a comprehensive bike insurance plan’s coverage is quite high compared to a third party, as you get to protect your vehicle against own-damage, loss, theft, etc. In addition, the insurance company will pay for the damages caused to third parties and you through the comprehensive plan.

Add-ons: You cannot include add-ons to a third-party insurance plan. However, you can include add-ons to a comprehensive insurance plan. Add-ons are one of the best ways to enhance bike insurance coverage.

Cost: The third-party insurance policy costs a bit low compared to the comprehensive insurance plan. This is because the insurance coverage for both plans is quite different.

Is Only Third-Party Insurance Enough For A Bike?

Both third-party and comprehensive insurance plans are not the same plans. This is because the coverage offered through the plan is quite different. A third-party insurance plan is designed to protect other commuters and travellers on the road. However, the third-party insurance plan would not protect your vehicle during unfortunate events.

On the other hand, a comprehensive plan will protect your vehicle and third parties. Therefore, opting for a comprehensive insurance plan would be suitable for protecting your vehicle if you use your bike regularly.

However, if you rarely use your bike or are quite old, opting for a third-party insurance plan would be optimal for you. Therefore, choosing one among the two would depend on your insurance requirements. 

Factors To Consider Before Purchasing Insurance For Your Two-Wheeler:

Your insurance requirement: If you wish to find out the better option between third-party and comprehensive insurance, you will need to understand your insurance requirement first. Compare the two-wheeler insurance plans and choose the one that matches your needs.

Your bike’s cubic capacity: Your bike’s cubic capacity will play a crucial role in determining the cost of your insurance policy. A high cubic capacity leads to a high insurance premium cost.

IDV: Your bike’s Insured Declared Value is its current market value. It will be set at the time of purchasing the plan. You will get your bike’s IDV if your bike is damaged or stolen. Therefore, it is important to set the correct IDV while purchasing the plan.

Riders: Insurance companies offer riders to help customers enhance their insurance coverage. With the inclusion of riders, you can get insurance coverage for specific situations. Riders like zero depreciation, roadside assistance, etc., can be quite beneficial for you. However, you must choose the riders carefully, as they can lead to a hike in your premium amount.

Premium: The premium amount is the amount you will have to buy the plan for the policy tenure of your choice and for the extent of coverage needed. Insurers like Tata AIG offer online bike insurance calculators to help customers calculate the premium amount before purchasing the Tata AIG bike policy. Learning about the premium amount can help you purchase an affordable plan.

Conclusion

If you’re a bike owner, it would help if you looked at the difference between bike insurance in third-party vs comprehensive coverages. If you’re regularly using your bike, getting a comprehensive plan would be optimal for you. However, if you’re not using it regularly, getting a third-party plan would be optimal. It would help if you looked through a few factors like your insurance requirements and your bike’s IDV to find a suitable plan.

ask bikeadvice

FEATURED VIDEO

Stay in touch

To be updated with all the latest news, offers and special announcements.