Most people tend to be under the impression that it is a four wheeler which needs insurance. The truth is it is wise to opt for an insurance policy for your two-wheeler as well. Most people however find the process of renewal a rather daunting task, most because of the premium which needs to be paid.
People seem to be divided on the rate at which they want to pay their premiums. While some want their premiums to be paid every year, there are others who prefer paying it after a few years. The two wheeler insurance policy which is renewed every year is known as a short-term insurance policy while the other is known as a long-term insurance policy.
Most two-wheeler owners are unable to decide which insurance policy to opt for. Here are thus the pros and cons of both.
Short Term Insurance
These are those insurance policies which are for a year or less. Owing to the small period for which they are opted, they are named that way.
Read Also: Long Term or Short Term Two Wheeler Insurance?
Some of the benefits of this kind of insurance policy include less premium and bonus rewards such as “no claim bonus” which can be claimed each year. The cons on the other hand include the time and effort required to the insurance policy in getting it renewed and also if any changes are introduced in the policy you need to be prepared for them once you renew it.
These policies can go up for a period of a few year because of which they are known as long-term insurance policies. The benefits here include the fact that you invest in the premium once and you forget about it. Even if the price of the premium changes, you do not have to worry about it. The rewards including “no claim bonus discounts” are also higher.
The disadvantages on the other hand include the big factor of suitability. Such an insurance policy is not suited for old vehicles because they are subject to their own wear and tear and as such any amount which is paid will become redundant. The premium amount is also on the higher side because you are paying for a few years worth of insurance.
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health. She has in depth knowledge and has written more than 1200 blogs on topics related home and car insurance. She also provide you with knowledge about home improvement and cooking.