A bike insurance policy keeps you financially secure in times of emergencies like a road accident or natural calamity. However, only one out of three bike owners realize the importance of having two-wheeler insurance. Others complain that the premium amount is too high. At the time of buying bike insurance, it is important to focus on getting the maximum coverage at the lowest premium rate.
So, here are 7 simple ways to reduce your two-wheeler insurance premium:
1. Use Your No Claim Bonus (NCB):
If you have not raised any claims during the policy term, your insurer will offer you a discount (in percentage) at the time of renewal. This discount is known as No Claim Bonus (NCB). At the end of the 1st year with no claims, your NCB will be 20%. This means if you have not filed for any claims in the 1st year, you can save flat 20% on your premium amount during your first renewal. If you are changing your insurance provider at the time of renewal, you can transfer your No Claims Bonus (NCB) from one insurance provider to the other.
PRO-TIP: To avoid missing out on No Claims Bonus (NCB) provided by your insurer, do not raise small claims.
2. Select a Long Term / Multiple-Year Two-wheeler Insurance Plan:
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.
3. Choose Add-on Covers Wisely:
Add-on covers are a great way to ensure additional financial coverage along with a Comprehensive Insurance policy. However, you will need to pay some additional amount for every Add-on. Therefore, it is important to choose Add-on covers that will supplement your bike insurance. Depending on your needs, you can opt for Add-on covers like Zero Depreciation cover, Personal Accident Cover for Pillion Rider, Roadside Assistance, etc.
4. Opt for Voluntary Deductible:
Most policyholders are confused between voluntary deductibles and co-pay. There is a big difference between the two concepts. Voluntary deductible is an investment you make towards the repairs of your two-wheeler, in case of an accident, at the time of buying bike insurance. Opting for voluntary deductible lowers your premium amount.
5. Invest in Anti-theft Devices:
If your two-wheeler has a security device as an anti-theft alarm installed, your insurance provider may lower your premium amount. Placing anti-theft devices is a positive sign and reflects that you are careful about your vehicle. It sends a message to the insurer that you are taking the necessary precautions. However, it is important that the security devices you install are approved by the Automotive Research Association of India (ARAI)
PRO-TIP: Installing an ARAI-certified Anti-Theft Device can reduce your premium amount by 10%.
6. Register with an Automobile Association:
Motorcycle organizations and clubs offer multiple discounts to their members. As a part of these organizations, you can use these discounts to reduce the premium of your bike insurance. You can also use it as an opportunity to find new friends and network with other bike enthusiasts.
7. Compare and buy online:
Before buying, it is important to research and compare the insurance policies available in the market. The easiest way to do this is to use an insurance platform to compare quotes from various insurers in one place. Remember to compare the coverage, benefits offered by each insurer and even exclusions. You can use filters to set your budget.
PRO-TIP: Don’t be distracted by the cheapest plan. Also, note the type of policy you are looking for. Eg: Third-Party Insurance is cheaper than Comprehensive Cover but it only covers damages or losses to third-party.
Benefits of Buying Bike Insurance Online
- Paperless Transaction: Since the entire process is online, there is no paperwork involved.
- No Loss of Documents: Unlike agents, buying an insurance policy online guarantees that there will be no loss of paperwork.
- 24*7 Support: Emergencies don’t have a fixed time. Therefore, it is important to have reliable support round the clock for claim assistance.
- Quick Claim Settlement: With a completely digital process, the time taken by the insurer to respond online is reduced.
- Smooth Transfer of No Claim Bonus (NCB): If you choose to change your insurer at the time of renewal, you can transfer your No Claim Bonus (NCB) from your previous insurer instantly.
In order to get the best price for your two-wheeler insurance policy, remember to compare different insurance providers online. You can also make use of your No Claim Bonus and invest in Add-on covers for improved protection. Opting for a long term multi-year plan will also bring down your premium rate as well as take away the burden of annual renewals.