Two-wheeler insurance: Long-term vs short-term

Two-wheeler insurance policies are necessary for every owner. It acts as a cover by offering protection from the damages due to accidents, saves you from legal liabilities and takes away financial stress. There are many bike insurance policies available in the market. You may be confused between several choices and feel difficult to decide on the right insurance policy for you. Two-wheeler insurance policies are widely differentiated between long-term and short-term ones.

Main difference

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:

1) Premium payment

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.

2) Cost

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.

3) Flexibility

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.

4) No claim bonus benefits

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.

5) Riders facility

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.