10 misconceptions of electric bike insurance
Below are some of the major misconceptions when it comes to buying insurance for your electric two-wheeler. Apart from the misconceptions and the underlying reality, you will also find reasons to insure your electric bike.
Electric two-wheelers have gained immense popularity over the few years. They are ideal for city commutes and can bring down running costs substantially. And not to mention that they are better for the environment as well. If you are contemplating buying a new bike, selecting an electric bike can be a good option. And should you do that, you will need two-wheeler insurance for the bike as well.
Unlike standard two-wheelers, people have a lot of misconceptions when it comes to buying insurance for their electric bikes. Here are some of them, along with a reality check.
List of common misconceptions:
Here are some of the misconceptions that people have when it comes to electric two-wheeler insurance. And whether these misconceptions are true or not.
- You don’t need insurance for electric bikes:
This is a common misconception that quite a few electric bike owners have. However, it is not true. Your electric bike needs insurance as long as it requires a registration number and can go beyond 25 kilometres per hour. In such cases, you will need to buy electric bike insurance to secure your bike from potential mishaps.
- Liability only policy is enough:
Since the law mandates that bike owners have at least a third-party liability-only policy, some owners believe that it is enough. While the policy does protect the policyholder against damages or injuries to third parties, it might not be enough. The liability-only policy will leave you asking for more when there is damage to your bike. By paying a small premium above liability policy, you can opt for a comprehensive plan that offers much better coverage.
- Coverage for commercial use
Bike owners believe that the policy offers coverage for commercial usage of electric bikes, which is not true. Insurance providers offer the policy only for the personal use of electric bikes. If you want to use the bike for commercial purposes, you will need to inform your insurance provider about the same.
- Policy premium depends on credit score:
This is not true. The policy premium of two wheeler insurance does not depend on the credit score. If you believe that having a better credit score will help you to bring down the cost of your policy, that will not happen. In fact, a lot of other factors govern the premium of a bike, which include the manufacturer, model, where you reside, insured declared value, etc.
- You can cancel a policy at any time:
Though you can cancel your electric bike insurance policy, there are certain terms and conditions that you must be aware of. For example, you cannot file for a claim if your policy expires in less than 30 days. Should you want to cancel your policy, you might have to pay a cancellation fee to the insurance provider.
- The policy offers coverage for pillion riders:
Your electric bike insurance will not cover pillion riders out of the box. In the unfortunate event of an accident, if both the rider and pillion rider are injured, you cannot claim for injuries to the pillion unless you opt for a personal accident cover or choose an add-on for unnamed pillion riders.
- You cannot change the insurance provider:
Unlike the common misconception, you can change the insurance provider of your electric bike insurance. If you are not happy with the services on offer, you can switch the insurance provider irrespective of choosing a regular one-year policy or a long-term policy. If you have accumulated any no-claim bonus, you can transfer that as well.
- Buying a policy is a cumbersome process:
This is a total myth. Buying two wheeler insurance is quick and simple. You can visit the website of your favourite insurance provider and provide the essential details about the bike, and you select the policy type, pay the policy premium and receive the policy document in your mailbox. All of these can take only a few minutes. And as far as information is concerned, you will only need to provide mandatory requirements.
- No assistance for buying:
We are well past those days when one did not have assistance in buying new insurance for their bike. Once you decide to buy a policy and zero down on an insurance provider, representatives of the company will guide you through the process if you need any help. You can call the insurance provider and ask for help, and a representative will help you through the entire process.
- Buying policy only is unsafe:
Some people believe that buying insurance for a bike online can be quite unsafe. This is not true. In fact, buying a policy online is quite safe. Insurance providers have secure websites that contain your data. Also, they use secure channels for payment, which reduces any chances of fraud or malicious actions.
Major reasons to buy electric bike insurance:
If you are on edge as far as buying insurance for your electric bike is concerned, here are some prominent reasons for doing so.
- Third-party liability:
If you are unfortunately involved in an accident, it can result in injury or damage to third parties. And you will be liable to compensate for them. On the other hand, having two-wheeler insurance will protect you against these liabilities. It also includes any possible legal actions.
- Mandated by the law:
The Motor Vehicle Act of 1988 mandates that all vehicle owners always have insurance on them. This is another prominent reason for buying a policy for your bike. Failing to do so will make it illegal for you to ride your bike. And you will also end up paying a hefty penalty for riding without insurance.
- Damages to your bike:
Most importantly, a policy will ensure that any damages to your bike are well protected. Should your bike receive any damage due to an accident or mishap, the policy will compensate you for the same.
- Enhanced coverage with add-ons:
When you opt for comprehensive electric bike insurance, you have the option of choosing add-ons. By paying a small premium, you can increase the effectiveness of the policy by a considerable margin. It is a simple way to customise the policy as per your needs and save money in the long run.
- Ride without worries:
Lastly, the insurance policy will make sure that you can continue riding your bike without any hassles or worries. The plan will protect you against challans from the traffic police department for riding without insurance, third-party liabilities, and damage to your bike as well.
Above are some of the major misconceptions when it comes to electric bikes and the truth behind them as well. It is important to understand that any bike you purchase that needs a registration will also need two-wheeler insurance. And buying the policy online can be a convenient way to do so. By buying online, you can secure a policy at affordable premiums and good coverage.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.