Purchasing suitable vehicle insurance is crucial given the accident-prone roads in most cities in India. Apart from the existing policy features in a plan, some insurers pay extra above the premium to include additional features that give extra coverage over a basic policy. These add-ons increase financial security, covering costs for accidents, theft, natural calamities, and third-party liabilities. While these are appealing benefits, they come at a price, affecting the overall premium.

Continue reading this blog to understand the impact of add-ons on your bike insurance.

Understanding Bike Insurance Add-ons

Bike insurance add-ons are voluntary coverages that policyholders can buy to customise their policies as per their requirements. These riders offer extra protection against certain risks that standard insurance might not fully cover. Furthermore, standard bike insurance policies typically have basic own damage and third-party liability coverage. Add-ons can extend these covers, giving the rider peace of mind.

Effect of Add-ons on the Cost of Bike Insurance

Including additional features in your vehicle insurance online policies is beneficial for getting extra coverage during uncertain times. Here are the effects of add-ons on the cost of bike insurance:

• Addition in Premium Rate

Every add-on has an extra cost, which is put on top of the basic premium amount. The greater the number of add-ons selected, the higher the overall insurance cost. In turn, this gives you higher financial protection during an accident, breakdown, or other unexpected happenings.

• Insurers' Risk Estimation

Insurance providers evaluate a policyholder's risk factors before finalising the premium. Riders who choose more than one add-on are considered to have higher coverage needs, which may slightly affect the cost of the base vehicle insurance online policy.

• Policy Customisation

Though add-on features increase the premium, they enable the policyholder to customise coverage based on their requirements. This way, they will not incur unnecessary expenses in the future. For example, an individual who regularly drives on highways may be able to use roadside assistance coverage despite paying a higher premium.

Common Add-ons and Their Cost Impact

Some of the common add-on features and their cost impact on the overall policy are as follows:

1. Zero Depreciation Cover

A zero-depreciation add-on covers the cost of bike components if damaged without considering depreciation. Though it substantially increases the premium, it saves out-of-pocket repair expenses, making it a popular add-on.

2. Personal Accident Cover for Passenger Rider

This add-on offers financial cover to a passenger rider in the event of an accident. As personal accident cover is already compulsory, additional coverage for the pillion adds to the premium but provides complete cover.

3. Roadside Assistance Cover

Roadside assistance is helpful for riders who frequently travel long distances. It supports breakdowns, fuel delivery, flat tyres, and towing services. While it slightly increases the premium, it eliminates potential expenses during emergencies.

4. Engine Protection Cover

This add-on is useful for people who reside in flood zones, as it compensates for loss due to water entry or oil leakage. As engine repairs are expensive, this add-on will help avoid huge expenses, though it increases the premium by a considerable amount.

5. Return to Invoice Cover

In the event of theft or complete loss, this add-on feature ensures the policyholder gets the bike's invoice value instead of its depreciated value. However, it adds to the premium but is worth it for new or high-value bikes.

6. Consumables Cover

Regular bike insurance does not cover the cost of consumables such as engine oil, brake oil, and lubricants. Moreover, including this cover marginally increases the premium but covers these little but recurring costs.

7. No Claim Bonus (NCB) Protection

No Claim Bonus (NCB) is a discount for not claiming the insurance amount during the policy year. With an NCB Protection add-on, the policyholder can keep this benefit even after making a claim. Although it raises the premium, it ensures long-term discounts on renewal premiums.

Are Add-ons Worth the Additional Cost?

While add-ons raise the price of bike insurance, they offer essential advantages that can save money in the long term. The choice of these features should be based on some factors:

• Riding Habits: Roadside assistance coverage should be opted for if you often drive long distances.
• Geographical Location: Individuals residing in flood areas may consider engine cover protection.
• Bike Value: Premium bikes could need extras such as return to invoice cover and key replacement.
• Budget: If the extra expense is affordable, some add-ons can be a massive cost-saver in the event of an accident.

Final Thoughts

In summary, add-ons supplement bike insurance coverage but at a higher cost. Though some add-ons, such as zero depreciation and roadside assistance, are of significant value, others might not be worthwhile for all riders. Therefore, before buying add-ons, one needs to analyse personal needs, bicycle usage, and finances. An efficiently planned policy with appropriate add-ons can afford the utmost safety without unnecessary costs, providing a stress-free riding experience.