The long-term two-wheeler insurance covers your two wheeler for a period of up to five years as opposed to short term two-wheeler insurance that requires you to renew your two wheeler insurance annually. Both policies offer security and accident cover. The primary difference between long-term and short-term two-wheeler insurance policies is the period of policy term. Apart from this, there are also other differences which are very important. Take a look:
In terms of policy renewal, for long-term two-wheeler insurance it requires premium payment once in three or five years, whereas in case of short-term bike insurance, you need to pay it yearly.
A long-term bike insurance policy is cost-effective as it avoids any increase in the annual premium. In addition, most of the insurance companies offer discounts on premiums charged on long-term policies.
Short-term policies offer better flexibility compared to a long-term two-wheeler insurance policy. Because, in case of a short-term two-wheeler insurance policy, you can modify your policy terms every year and take advantage of any offers and discounts.
Long-term insurance policy is offered with a higher quantum of no claim bonus (NCB) discount compared to a short-term insurance policy. The discount can go up to 20% for the first claim-free policy year.
Add-ons come with benefits at a nominal extra charge and each one of them serves a specific purpose. Compared to long-term, short-term bike insurance policies provide you with more add-ons and you can make changes to these riders every year according to your needs.
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