Bike insurance policy

Different Types of Bike Insurance Policies Once you decide to buy a two-wheeler of your choice, the next decision is to choose a bike insurance policy that would comply to your needs keeping your budget intact. To make a right choice, you should be well aware of the different types of motorcycle insurance available in the market.

Types of insurance Liability insurance: This is the basic insurance policy that covers any damage caused to the third party by your vehicle.

It covers physical injury, vehicle damage or property damage of the third-party. The damage caused to your bike is not covered under the liability insurance. In India, it is mandatory to purchase liability insurance if you own any vehicle.

Comprehensive insurance: A comprehensive bike insurance policy covers the third party liability and also provides for the damage caused to your vehicle. The two main features of this policy are: Provides coverage to your vehicle against theft, fire, accidents and natural calamity Provides accidental coverage for self and third party liability This policy though covers interests of the rider but it does not include collision insurance.

Collision insurance: This policy pays for the damage of your bike in case your bike collides with any vehicle or object. The damage to your vehicle can be enormous depending upon the severity of the collision. In this case, it may a huge burden for you to bear the repair cost of your vehicle. The insurance company would be paying for the damages upto the extent of the book value of the vehicle.

If you are young, single and have just started earning then it is advisable to take comprehensive and collision insurance coverage as it would save you from hefty expenses in case of any misfortune. Insurance is not a luxury but a necessity as the cost of living is increasing day by day and any unforeseen financial burden would leave you stranded.

Read more about Motorcycle Insurance.