Many a times, you tend to forget renewing your vehicle insurance. Are you aware of the various implications that follow due to this? Apart from not keeping your vehicle adequately covered, it also keeps you from making upgrades and additions to the terms and conditions ordained in your two wheeler insurance. Fortunately, you can now opt for multi-year insurance which eliminates the hassle of having to renew your policy every year. In most surveys it has been observed that while car owners seldom forget to renew their insurance policies, bike owners often forget to get their two wheeler insurance renewal. It is because of this that insurance providers have now come up with multi-year car insurances for bike owners as well. Most of these two-wheeler insurance policies cover your vehicle for a period of three years depending on the type of your vehicle. Single-year insurance policies and multi-year policies have certain similar aspects but they are different for the most part. Let us learn of these differences.
Difference between single-year policies and multi-year policies
While the nature of coverage offered by both types of policies is similar, there are certain differences between the two which makes multi-year policies more extensive and desirable. Some of them are as follows.
- Period of coverage: Single-year, as its name suggests, offers cover for a year and multi-year policies offer cover for up to three years.
- Renewal frequency: Single-year policies will require renewal every year while multi-year policies will have to be renewed only once every three years.
- Hikes in premium: Single-year two wheeler insurance will have their premium revised every year when the policy is renewed. However, for multi-year policies the same premium rate will be applicable for three years. This amount will also not be subject to any fluctuations of the market.
- No Claim Bonus: Unlike in the case of a single-year policy, the No Claim Bonus is not nullified when a new claim is made but only gets reduced to a certain degree.
- Cancellation procedures: In case you have decided to cancel your single-year bike insurance, you will not get any refund if you have made any claims in the past. However, in case of multi-year insurance, a proportional refund is provided to you. This amount will be based on the remaining period of the multi-year insurance policy.
When to opt for single-year policy
Even though multi-year policies have gained more popularity in recent times, it is advisable for you to opt for single-year policies if you are not financially strong and stable enough to commit to a three year long financial obligation. You may also consider this policy if two-wheeler is only a temporary solution for commute for you and will soon upgrade to a four-wheeler. The single-year policy is also the cheapest two wheeler insurance that is available in the market right now.
When to choose multi-year insurance
Multi-year insurance policies have become all the rage among two-wheeler owners in recent times and there are number of reasons for that. Some of the most common ones as to why you should go for this one are as follows.
- Less worry since you do not have to get renewal in three years.
- Lesser premium than single-year as it experiences premium hike only once in three years at the time of renewal.
- Avoid the risk of riding a bike with an expired insurance for even a day.
- Discount on premium of own damage is also provided.
- You can cancel the policy even before the tenure ends and get a sizeable refund too.
It is, therefore, wiser to opt for long term two wheeler insurance policies for a secure riding experience as well as stress-free policy handling.