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7 Best Ways to Reduce Bike Insurance Renewal Cost?

By Vikas Chandra Das
21 July 2022, 11:46 AM
best ways to reduce bike insurance renewal cost

According to the Motor Vehicles Act of 1988, it is mandatory for all bikes on Indian roads to have valid Third Party Liability insurance. Since most two-wheeler insurance providers have a policy term of one year, it becomes important to renew your bike insurance annually. Therefore, as a law-abiding citizen, it is your duty to renew your bike insurance before it expires. Apart from legal obligations, renewing your bike insurance on time can have financial benefits as well. 

Read on to know how you can save money while renewing your two-wheeler insurance - 

Tips to Reduce Your Two-Wheeler Insurance Premium

1. Renew on Time 

Renewing your policy on time saves money. Moreover, it ensures that you stay covered. Following are the benefits of renewing your policy on time.

  • Avoid Penalties - As per the Motor Vehicles Act, it is illegal to ride without two-wheeler insurance. If you are caught without a valid two wheeler policy, you must be prepared to pay a heavy penalty. In some cases, owners also had to face imprisonment for 3 months.
  • Keep Your Bike Insured - Failing to renew your bike insurance will put you in financial risk, in case of an unfortunate event. Renewing your two-wheeler insurance will keep your bike protected even during natural calamities or theft.
  • Maintain Your No-Claim Bonus (NCB)  - No Claim Bonus (NCB) is a discount offered by your insurer not raising a claim during the policy term. However, if you fail to renew your bike insurance within 90 days from its date of expiry, your No Claim Bonus will be lost.

2. Type of Your Two Wheeler Insurance Cover 

While buying two-wheeler insurance, your primary focus should be on the coverage offered by the insurer against the premium amount. Third-party liability cover is cheaper than Comprehensive one. But the coverage and benefits of Comprehensive Cover are worth the extra .amount Avoid getting distracted by the premium amount. Before renewing, choose a policy that can be useful in all kinds of emergencies. You can also use your own judgement and invest in Add-on Covers for wider coverage. 

3. Invest in Multi-year Two Wheeler Policy 

Most two-wheeler insurance plans have a policy term of one year. At the end of the year, they need to be renewed. However, IRDAI’s latest guidelines have introduced multi-year two-wheeler insurance policies in the market. These policies allow you to choose the terms of your policy. The maximum term is three years for both Third Party as well as Comprehensive Cover. Since a one-time payment is made for 3 years, these long term plans have a lower premium rate.

4. No Claim Bonus (NCB)

No-Claim Bonus or NCB is a percentage discount offered by your insurance company for being a safe rider. It is only offered to bike owners with no history of claims during their policy term. At the time of renewal, you can use your No-Claim Bonus to save money. If you are planning to change your insurance provider, transfer your No-Claims Bonus (NCB) to your new insurer.

No Claim Bonus is the best way to reduce your premium cost. The table below compares the percentage discount offered as No-Claim Bonus year-on-year-

Claim free yearsNo-Claim Bonus (IN %)
At the time of renewal20%
After 2nd claim-free year 25%
After 3rd claim-free year35%
After 4th claim-free year45%
After 5th claim-free year50%

PRO-TIP: If you fail to renew your bike insurance policy within 90 days from its date of expiry, your No Claim Bonus will be lost. 

5. Compare Online 

Before renewing, it is important to compare quotes from different insurers. You can visit an online insurance aggregator to get all the information you need in one place. Shortlist the insurance providers based on the benefits, Insured Declared Value (IDV), available add-ons options, and claim settlement ratio. It is also important to understand the exclusions and claim settlement process. 

6. Opt Only Necessary Add-on Covers

In addition to a Comprehensive Cover, bike owners also invest in Add-on covers. These Add-ons improve the coverage and provide extra benefits, especially in case of emergencies. Imagine your bike’s engine kit being stuck due to excessive water inflow during floods or a breakdown while you are on a road trip. To stay secure in times like these, it is important to opt for necessary add-on covers

Some of the most common Add-on Covers include - 

  • Zero-Depreciation - Due to constant use, your bike’s engine and other parts wear out. This leads to depreciation of your bike’s value. With this add-on, your insurance company will compensate for nearly the entire cost of the parts without any deductions.
  • Roadside Assistance It is not uncommon to have a punctured tire or engine issues. But what can you do if you are alone in the middle of the road in an unfamiliar area? This Add-on cover helps you deal with all mechanical as well as technical issues while you are riding. It aims to provide 24*7 roadside assistance for a safe experience.
  • Personal Accident Cover for Pillion Rider - If you routinely travel with a pillion i.e person sitting behind the rider, this add-on cover is a must-have for you. This Add-on cover provides financial compensation for the fellow rider in case of a major accident.
  • Return to Invoice - In the case of loss or theft of your bike, you only get the Insured Declared Value of your vehicle. However, there may be a significant difference between the IDV and current value. This Add-on compensates for not just the IDV but also the difference amount.

7. Discounts You Can Avail At the Time of Renewal

a. Opt for Voluntary deduction

Voluntary deduction refers to your contribution to the damage cost, in case of an accident. This is different from Compulsory deduction. Normally, if you have a valid Comprehensive Cover, the entire cost of damage is borne by the insurance provider. If you opt for Voluntary deduction, your premium amount is reduced. In the event of an accident, the amount equivalent to your voluntary deductible will be reduced from your claim amount. 

PRO-TIP: Voluntary deduction is different from co-pay since only a portion of the damage costs is paid from your own pocket. 

b. Install Anti-theft Devices - 

Anti-theft devices like an anti-theft alarm or GPS systems help to reduce the chances of theft. With lesser thefts, the number of claims will also be less. So, most insurance providers encourage bike owners to install these systems by lowering the premium amount. However, make sure the security device you install is approved by the Automotive Research Association of India (ARAI)

PRO-TIP: Installing an ARAI-certified Anti-Theft Device can reduce the premium amount for your bike insurance by 10%.

c. Register with an Automobile Association

Motorcycle organizations and clubs have a large number of loyal members. To win the trust of these members, insurers providers often host events and giveaways exclusively for these members. As a member, you can also avail premium services and special discounts. Most of these organizations have a nominal registration fee. Once you are part of the club, you can use the members-only discount to reduce the premium of your bike insurance. 


In India, it is against the law to ride a bike without third party insurance. Therefore, it is important to renew your bike insurance on time. If you are changing your insurer, make sure you understand the inclusions and exclusions of the policy before finalizing your insurer. Comparing quotes and using your No-Claim Bonus (NCB) can also be useful to reduce the premium amount of your bike insurance.

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