Whether you own a car or a motorbike, it is crucial to comprehend the nuances of insurance policies to ensure the maximum security of your vehicles. Even though both car insurance and bike insurance serve the purpose of financially safeguarding your vehicle, these two differ in certain aspects.
Likewise, apart from their fundamental purpose of providing financial assistance, these two types of insurance policies feature significant differences in costs, coverage, etc. This blog will explore the areas where these differ, so hold on until the end.
What is car insurance?
A car insurance policy, also known as auto insurance, is a protection plan to safeguard your car financially against unforeseen circumstances like accidents, damages, thefts, etc. According to the Motor Vehicle Act of India, every individual owning a car must have car insurance to be able to legally drive on the roads.
These insurance plans come in different types, providing coverage for several instances. However, you can also opt for a comprehensive car insurance plan for maximum protection. You can personalise your policy according to your needs and budget.
What is bike insurance?
A bike insurance policy, also called two-wheeler insurance, is a protection plan which is specifically designed to ensure the maximum security of your motorbike. Having a two-wheeler insurance plan is a mandatory requirement as per the Motor Vehicle Act of India. This type of insurance plan provides you with financial assistance against unfortunate scenarios like manmade/natural disasters, theft, accidents etc.
Bike insurance policies come in different types to suit the varied preferences of people when it comes to coverage. You can either opt for a comprehensive coverage plan or you can even tailor the coverage based on your specific needs.
How does a car insurance policy and a bike insurance policy differ from each other?
Often considered the same, a car insurance policy and a bike insurance policy tend to differ from each other on a few points. Refer to the following points to learn about the same:
1. Cost
When it comes to the cost of purchasing an insurance plan for your vehicle, a bike insurance policy comes at a lower price than a car. This is largely because the value of a two-wheeler is quite less than a car and thus the insurance amount is considerably lower. Even though risks associated with motorbikes tend to be more than what one can expect from four-wheelers, the prices differ mostly as per your budget and needs.
2. Coverage
Whenever you purchase a car insurance insurance policy, the plan automatically provides coverage for the passengers since you pay for more than one basic liability cover. This is not the case with bike insurance policies, since such plans tend to offer coverage for one person.
Nevertheless, you can opt for a guest passenger liability to receive additional coverage in case you wish to receive coverage for more than one person. However, such facilities come as options for which you may need to pay extra.
3. Protection for Personal Injury
Motorbikes tend to come with less protection for physical injuries as compared to cars. This is because, in case of an accident, it is assumed that the rider is usually thrown out of the vehicle and hence they are more likely to be at risk. Thus, bike insurance policies feature an option called PIP or Personal Injury Protection which you can include in your existing plan.
In the case of car insurance policies, you get enough coverage that ensures the security of the driver as well as the passengers to cover the injuries.
4. Additional Benefits
Bike insurance and car insurance come with various types of add-ons or additional benefits which further enhance the coverage. However, in some cases, the riders offered in car insurance can be more than the bike one. For instance, car insurance comes with a Paid Driver Protection rider which covers the death or accident of your paid driver.
The Bottom Line
To wrap it up, it is important to have a deep understanding of the difference between a car insurance policy and a bike insurance policy to choose the right one for you. While car insurance can be a broader form of a protection plan, bike insurance caters to the specific needs of two-wheelers only. Nevertheless, both types of insurance are beneficial in many ways and mandatory to have for all vehicle owners. Hence, assess your requirements thoroughly and opt for the type of coverage that aligns with your needs.
