Sometimes, a second-hand bike can be better than buying a new one. However, you must ensure adequate two-wheeler insurance even if the bike is second-hand. Find out why in this post. Keep reading.
There can be numerous reasons to purchase a second-hand bike instead of a new one. For instance, buying a pre-owned bike makes sense if you’re on a tight budget. Many bike enthusiasts own high-end bikes, which they use for long tours, and want a second-hand bike for daily commutes.
But if you’ve decided to purchase a second-hand bike, then ensure that your bike has proper bike insurance coverage.
Second-Hand Bike Insurance
As per The Indian Motor Vehicles Act, 1988, it is statutory for every vehicle to have third-party vehicle insurance, also known as “liability only” insurance. Therefore, you must purchase a third-party bike insurance policy even when purchasing a second-hand bike. However, third-party insurance can only protect you from losses and damages caused to a third party involved in an accident with your bike.
But, if you have purchased a high-end second-hand bike, then you may want to avoid exorbitant expenses if the bike suffers any damage. Besides, you’re the second owner of the bike. So, you may not be sure of the extent of wear and tear the bike has undergone in the past.
Thus, you may consider taking comprehensive bike insurance that covers the damages caused to both third-party and your own vehicle.
Important Add-On to Consider When Buying Comprehensive Bike Insurance
You can enhance the scope of your comprehensive bike insurance policy by including this necessary add-on.
Zero Depreciation Cover
The insurer considers the bike’s depreciation rate before approving a claim amount. Consequently, you may have to shell out more money out of your pocket in case of a claim. This can be particularly painful if you have a costly bike.
But the insurer may pay the insurance amount without considering the bike’s depreciation value if it has zero depreciation cover.
Things to Remember in Second-Hand Bike Insurance
As with any other vehicle, you need the appropriate two-wheeler driving license before you purchase the two-wheeler insurance.
You need to ensure that the ownership of the second-hand bike is officially transferred from its original buyer to you. The process includes changes in the Bike Registration certificate, PUC, informing the Regional Transport Office, etc.
Insurance Certificate Transfer
Check the existing bike insurance status of the pre-owned bike you want to buy. If the bike already has valid two-wheeler insurance, then you need to transfer it to your name. Moreover, you should inform the insurer about the change in ownership of the bike.
A well-serviced second-hand bike with proper bike insurance can be enough to have a riding experience to remember. Besides, who cares about the age of the bike as long as it is fun to ride on?