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Short Term Vs Long Term Two Wheeler Insurance Policies

Renewing your two wheeler insurance can be a pain. You have to keep track of the date of renewal and ensure that you pay the policy premium on time. Miss the date and you leave your two wheeler uninsured and vulnerable to accidents. What if I told you that you don’t have to worry about renewing your two wheeler insurance for a period of three years at a time?

A recent study indicates that close to 50% of vehicles plying on the road do not have insurance. More and more people fail to renew their policy and hence their vehicles become uninsured. To combat non-renewal, insurance companies offer long term two wheeler insurance that covers your two wheeler for a period of three years as opposed to short term two wheeler insurance that requires you to renew your two wheeler insurance annually. To know what to expect from these two policy types and to make an informed choice on your two wheeler insurance, read on!

Short Term Two wheeler Insurance Pros and Cons



Premium amount is to be paid for only one year and so is lesser compared to long term Having to renew the policy at the end of each year requires time and effort
No Claim Bonus Discounts can be availed at the end of each year No protection from increase in premium amounts
Service tax and other associated charges could also increase annually
Keeping track of renewal dates is a pain




No hassle of repeated renewal for a period of three years No Claim Bonus can be availed only if entire-period is claim free
Attractive discounts on No Damage component of two wheeler insurance offered due to long term loyalty to company Not suited for old vehicles
Higher quantum of No Claim Bonus Discount as compared to short term insurance Though premium amount is to be paid only once, since it covers three years, the amount to be paid is higher.
Protection from increase in premium rates during the three year coverage period


Now that we have compared the two types, it is up to you to decide what insurance suits your needs the best! No matter what you choose, the two wheeler insurance experts at HDFC ERGO are trust-worthy and reliable and can sort out all of your two wheeler insurance needs. Consult the policy brochures and documents available on the website for a detailed description of policy details and coverage options. Choose HDFC ERGO for the best two wheeler insurance Insurance in the market.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the purchase.

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