One of the easiest ways of commuting is by bicycles. They’re ideal for narrow streets, manage traffic better, and give you an adrenaline rush every time the throttle is pressed.
However, bikes are also predisposed to road accidents. Such accidents not only destroy bikes but also risk lives. Therefore, you know how important it is to get bike insurance. There are various types of bike insurance but we’ll talk about comprehensive and third party insurance.
Are you confounded between the third party and comprehensive bike insurance? To end this confusion, here’s what you need to know to make the right decision. We’ll also tell you the best insurance cover for your bike.
What is Comprehensive Insurance?
Comprehensive bicycle insurance not only covers the risks of third parties but also caters for the damage. If you suffer an injury when riding an insured bike or the bicycle gets damaged, the comprehensive insurance also deals with the financial burden of such losses.
Own damage comprises covering losses caused by natural disasters, calamities caused by man, and much more. This insurance cover has key benefits of third-party insurance and extra advantages of financial coverage for your loss in case of a road accident.
What’s Third-Party Insurance?
As the name implies, third-party bicycle insurance takes care of third-party risks. It deals with damage caused to the third-party’s vehicle and also financial and legal obligations resulting from death or injury to the third-party.
It’s a fundamental bike insurance cover and guarantees the security of third-party and their possessions. This insurance type covers you from legal obligations in road accidents. However, it doesn’t cover your expenses if you get injured or your bike gets damaged. Let’s now look at the differences between comprehensive and third-party insurance.
Related:Is Bike Insurance Worth It?
Comprehensive or Third-Party Bike Insurance: What are the Differences?
The main difference between Comprehensive and Third-Party bike insurance is the coverage advantages. Third-party bicycle insurance only deals with liabilities related to third-parties. Comprehensive bike insurance covers damage to your bike and offers you the option of expanding your coverage past basic advantages, with a variety of add-ons and covers.
Selecting the best type of bike insurance for your bike is crucial given the risks involved in riding the two-wheeler in and around towns. Furthermore, there are traffic laws and heavy fines involved if you don’t have proper bike insurance. You can’t stay without a bike insurance policy!
To help you decide which bike insurance to buy, we’ve listed several other differences between Comprehensive and Third-Party bike insurance so that you can assess your options and make an informed choice.
Comprehensive or Third-Party Insurance Comparison Chart
Third-Party Bike Insurance
Comprehensive Bike Insurance
|How to determine the premium||The premium plans are set by the Insurance Regulatory and Development Authority. They’re set for all bike insurance in diverse firms.||The insurance company determines the premiums itself. Therefore, they vary among diverse insurance firms.|
|Premium rate||The premium is low and inexpensive.||Comprehensive insurance premiums are higher than those for the third-party insurance policy. The reason is that comprehensive plans have wider coverage than third party insurance plans.|
|Payable claims||In the third party insurance cover, the claims depend on the accident court rulings. In the event of death, there is a limitless liability. The insurance firm pays the amount determined by the tribunal. However, the coverage for property damage is limited.||In a comprehensive insurance policy, the claims depend on the claim type.
If the bike is damaged, the repair cost is catered for by the comprehensive insurance policy. The insurance company’s maximum liability for damage is based on the bike’s declared value which is also the value of the bike insurance policy.
In the event of thievery, the specified insurance value will be paid.
|Add-ons||The third-party insurance policy only provides necessary coverage against third-party liability. |
It has no add-ons available
|You can purchase extra coverage options known as add-ons under the comprehensive bike insurance by paying an extra premium.|
|No claim bonus||If there isn’t any claim made in an insurance year, the policy will not pay any benefit.||You’ll receive a no-claim bonusif there’s no claim made in an insurance year. This bonus is granted as a discount on the renewal premium. Besides, there’s an increase in the no-claim bonus after each year without a claim.|
|Limitations||• It doesn’t cater to the damage and loss of your bike be it an||• It doesn’t cater to the natural wear and tear of the bike.|
Comprehensive or Third-Party Insurance: Which is the Best?
Third-party bike insurance has fewer premiums although it meets the legal prerequisite for an acceptable insurance cover. Because of this, most bike owners choose a third-party policy.
However, the insurance policy doesn’t cover damage caused by the bike itself. If your bike is destroyed, you’ll have costly repairs. These expenses may hurt your finances. Therefore, a comprehensive insurance policy is the best.
Besides, if the bike is stolen, you’ll most likely suffer significant financial losses. A comprehensive policy caters for this loss and offers you full financial support in such instances. Although the premiums for comprehensive insurance cover are higher, the coverage advantages far exceed the cost of the premiums.
A third party insurance policy may be appropriate if you have an old bike and you don’t use it often. Comprehensive bike insurance is suggested to cater to all possible cases of financial loss.
Therefore, it’s good to comprehend the difference between a third-party and comprehensive insurance policy. This helps you to know what each of them covers. Also, take into account the benefits of comprehensive insurance cover and choose it over third-party policy for financial safety.