Avoid These Mistakes When Buying Two-Wheeler Insurance Online
- Square Insurance Brokers
- Aug 5
- 4 min read
In today’s digital world, buying two-wheeler insurance online has become the norm. It’s fast, convenient, and gives you access to multiple plans, all from the comfort of your home. However, many bike owners often make critical errors while purchasing insurance digitally—mistakes that can cost them time, money, and peace of mind later.
If you’re planning to buy or renew your two-wheeler insurance online, this guide will walk you through the top mistakes to avoid and how to make an informed decision that protects your vehicle and your wallet.
1. Skipping Policy Comparison
The Mistake:Many buyers settle for the first policy they come across without comparing features, benefits, or prices.
Why It Matters:There are dozens of insurers offering different premium rates, add-ons, and claim benefits. By not comparing, you may end up paying more for less coverage.
What You Should Do:Use online comparison tools or trusted aggregator websites. Look at:
IDV (Insured Declared Value)
Add-on covers
Premium amount
Claim settlement ratio
Garage network
2. Choosing the Cheapest Policy Blindly
The Mistake:Going only by the lowest premium cost without evaluating the coverage.
Why It Matters:A cheaper premium often means a lower IDV, poor customer service, or limited coverage. In the event of a claim, you may not get adequate compensation.
What You Should Do:Always strike a balance between premium and protection. Check:
Whether it covers own damage and third-party liability
The level of customer support
Online reviews and user experiences
3. Not Understanding Coverage Types
The Mistake:Buying insurance without knowing the difference between third-party and comprehensive coverage.
Why It Matters:Third-party insurance is mandatory in India but only covers damages to others. Comprehensive insurance also protects your vehicle.
What You Should Do:Understand both:
Third-Party Insurance: Legally required, limited protection
Comprehensive Insurance: Covers both third-party and own vehicle damage, natural disasters, theft, etc.
4. Underinsuring the Vehicle
The Mistake:Reducing your IDV to lower premiums.
Why It Matters:Your claim amount is based on IDV. If you set it too low, your payout during a total loss or theft may not cover the actual value of the vehicle.
What You Should Do:Always choose an IDV that reflects the current market value of your two-wheeler. It may slightly increase your premium but will ensure sufficient protection.
5. Ignoring Add-On Covers
The Mistake:Skipping add-ons to save money, even if they are relevant to your usage.
Why It Matters:Add-ons like zero depreciation, roadside assistance, and engine protection can be extremely helpful in emergencies and reduce out-of-pocket expenses.
What You Should Do:Consider relevant add-ons based on your needs:
Zero Depreciation: Full claim without depreciation deduction
Roadside Assistance: Help during breakdowns
Engine Protection: Ideal for flood-prone areas
NCB Protection: Retain your bonus even after a claim
6. Overlooking the Insurer’s Claim Settlement Ratio
The Mistake:Not checking how reliably an insurer settles claims.
Why It Matters:An insurer with a poor claim settlement history may delay or deny your claims.
What You Should Do:Always verify the claim settlement ratio (CSR) of the insurance company. A CSR of 90% or above is generally a good sign.
7. Not Renewing Insurance on Time
The Mistake:Missing the policy renewal deadline.
Why It Matters:If your policy lapses, your vehicle is uninsured. In case of an accident, you won’t be covered. Additionally, you may lose your No Claim Bonus (NCB).
What You Should Do:
Set reminders for renewal
Renew at least a week in advance
Use auto-renewal features if available
8. Incorrect or Incomplete Information
The Mistake:Providing incorrect details while filling out the online insurance form.
Why It Matters:Inaccurate information can lead to claim rejection. This includes wrong vehicle details, past insurance records, or fake personal data.
What You Should Do:
Double-check registration number, chassis number, engine number
Provide your actual previous insurance history
Mention all modifications truthfully
9. Ignoring the Policy Terms and Conditions
The Mistake:Clicking “I Agree” without reading the fine print.
Why It Matters:You might miss key clauses such as exclusions, deductibles, or claim procedures, which could cause issues during claims.
What You Should Do:
Read through policy documents carefully
Know what is covered and excluded
Understand the process of filing a claim
10. Not Utilizing NCB Benefits
The Mistake:Forgetting to apply your No Claim Bonus when renewing your policy.
Why It Matters:NCB can give you a discount of up to 50% on your premium if you haven’t made any claims in previous years.
What You Should Do:
Declare your NCB while renewing online
Transfer your NCB if you switch insurers
Bonus Tip: Not Checking the Garage Network
Why It Matters:Cashless claim services are only offered at network garages.
What You Should Do:Make sure your preferred or nearby garages are part of the insurer’s network before buying the policy.
Final Thoughts
Buying two-wheeler insurance online is one of the best ways to ensure your vehicle is protected efficiently and affordably. However, it's crucial to avoid the common pitfalls many policyholders make. From comparing plans and understanding policy terms to ensuring timely renewals and correct information, every step matters.
If you're looking for the best health insurance for a family, the same logic applies—transparency, coverage understanding, and claim reliability should always be your top priorities.
Make informed decisions, stay covered, and ride worry-free.
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