Introduction
Two-wheelers are more than just vehicles in India—they are an essential part of daily life. Affordable, convenient, and fuel-efficient, bikes and scooters are the most popular mode of transport for millions. But owning a two-wheeler also brings a legal and financial responsibility:
With the rise of digital platforms, purchasing two-wheeler insurance online has become the norm. It’s fast, paperless, and offers better transparency compared to traditional offline methods. However, many people make critical mistakes while buying or renewing their policies online—mistakes that can cost them heavily during claims.
In this article, we’ll highlight the common mistakes people make when buying two-wheeler insurance online and how you can avoid them to get the best protection for your bike.
Why Buying Two-Wheeler Insurance Online Is Beneficial
Before diving into mistakes, let’s understand why online buying is better:
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Instant Policy Issuance – No paperwork, no agents—just a few clicks.
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Easy Comparisons – Online portals allow you to compare premiums, coverage, and claim settlement ratios.
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Discounts & Offers – Online-only deals often make policies cheaper.
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Hassle-Free Renewals – Renew instantly, even if your policy has expired.
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24/7 Access – Buy or claim from anywhere at any time.
Clearly, online is the smarter option—but only if you avoid the pitfalls below.
10 Common Mistakes to Avoid When Buying Two-Wheeler Insurance Online
1. Choosing the Cheapest Policy Without Checking Coverage
Many buyers get tempted by the lowest premium. But cheaper isn’t always better.
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A low-cost policy often comes with limited coverage.
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During claims, you might end up paying huge out-of-pocket expenses.
Tip: Balance premium with adequate coverage. Always compare what each policy includes and excludes before finalizing.
2. Ignoring the Insured Declared Value (IDV)
The IDV is the maximum sum insured (i.e., the current market value of your bike). Many people reduce IDV to lower premiums, but this can backfire.
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Low IDV → Small payout during theft or total damage.
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High IDV → Higher premium, but better compensation.
Tip: Set IDV close to your bike’s actual market value for fair coverage.
3. Not Considering Add-On Covers
Add-ons can enhance your policy, but many buyers skip them to save money.
Common useful add-ons include:
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Zero Depreciation Cover – Get full claim without depreciation cuts.
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Roadside Assistance – Help during breakdowns.
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Engine Protection – Essential in flood-prone areas.
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Personal Accident Cover – Provides financial safety in case of injury.
Tip: Select add-ons that match your riding habits and location.
4. Overlooking Claim Settlement Ratio (CSR)
The CSR shows how many claims an insurer settles successfully. Choosing a company with a poor CSR may mean delayed or rejected claims.
Tip: Always check the insurer’s CSR (above 90% is ideal) before purchasing online.
5. Not Comparing Policies Online
One of the biggest mistakes is buying directly from the first insurer without comparing.
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You might miss out on lower premiums.
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Coverage may be less extensive.
Tip: Use online aggregators (like PolicyBazaar, Coverfox) or compare directly on multiple insurer websites before deciding.
6. Ignoring Policy Exclusions
Every policy has exclusions (situations where claims won’t be covered), such as:
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Riding without a valid license.
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Drunk driving.
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Regular wear and tear.
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Mechanical failures.
Many buyers don’t read exclusions and later face claim rejections.
Tip: Read the fine print carefully before buying.
7. Letting the Policy Lapse
Some owners forget to renew their insurance on time. If the policy lapses:
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Your two-wheeler is uninsured.
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You lose No Claim Bonus (NCB) benefits.
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You may need a fresh vehicle inspection before renewal.
Tip: Set reminders or enable auto-renewal online to avoid lapses.
8. Not Utilizing No Claim Bonus (NCB)
NCB is a reward for not making claims during the policy term. It can reduce your premium by up to 50%. Many buyers forget to use it while renewing.
Tip: Always declare and transfer your NCB while renewing or switching insurers.
9. Providing Incorrect Information
While filling out online forms, some buyers enter wrong details (bike model, registration, or previous policy details) either by mistake or intentionally to lower premiums. This can lead to claim rejection later.
Tip: Enter accurate details to avoid disputes during claims.
10. Ignoring Long-Term Policies
Most riders buy yearly policies. However, IRDAI also allows long-term policies (3-5 years). Skipping them can be a mistake if you want hassle-free coverage.
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Long-term plans protect against premium hikes.
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You don’t have to remember yearly renewals.
Tip: If you plan to keep your bike long-term, choose a multi-year policy online.
Smart Tips to Buy Two-Wheeler Insurance Online
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Use Reputable Platforms: Stick to trusted insurer websites or aggregator portals.
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Check for Cashless Garages: Ensure the insurer has tie-ups with garages in your city.
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Read Customer Reviews: Real user feedback gives clarity on claim settlement.
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Opt for Paperless Transactions: Keep a digital copy of your policy on your phone (DigiLocker is valid).
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Look for Renewal Reminders: Choose insurers who send SMS/email alerts before expiry.
Future Trends in Online Two-Wheeler Insurance (2025 and Beyond)
As technology grows, buying insurance will become even more advanced. Some emerging trends include:
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AI-Based Claim Settlement – Upload accident photos, and AI processes claims instantly.
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Usage-Based Insurance (UBI): Pay premiums based on kilometers ridden.
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Blockchain-Backed Policies: Transparent, secure digital records.
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Special Discounts for EVs: Lower premiums for eco-friendly electric two-wheelers.
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IoT Integration: Smart helmets and GPS devices linked with insurance for added benefits.
FAQs
1. Is it safe to buy two-wheeler insurance online?
Yes, policies bought online are valid, IRDAI-approved, and recognized by traffic authorities.
2. Can I switch insurers during renewal?
Yes, you can switch online without losing your NCB benefits.
3. What if I don’t renew my bike insurance?
Your bike becomes uninsured, and you may face penalties if caught. Also, you lose accumulated NCB.
4. How do I check if my insurer is reliable?
Check their claim settlement ratio, customer reviews, and network garages before buying.
5. Do I need physical documents while riding?
No, digital copies stored in your phone or DigiLocker are legally valid.
Conclusion
Buying two-wheeler insurance online is convenient, fast, and often cheaper—but only if done correctly. Many people fall into traps like choosing the cheapest premium, ignoring exclusions, or letting policies lapse. These mistakes can turn costly at the time of claims.
By avoiding these common errors, comparing policies carefully, and choosing the right add-ons, you can get maximum value from your insurance. Remember, insurance is not just a legal formality—it’s your financial shield against uncertainties on the road.
So, the next time you buy or renew two-wheeler insurance online, ride safe, ride smart, and most importantly, ride insured!
