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Useful Tips to Reduce Your Bike Insurance Premium

By Vikas Chandra Das
28 July 2022, 11:06 AM

People widely use two-wheelers for regular commutes. They are both convenient and economical. But road accidents involving two-wheelers have increased at an alarming rate in the past few years. Therefore, getting a bike insurance policy must protect you against financial liability.

Though a motorist must get a 3rd party two wheeler insurance policy, many people feel it is a futile expense as they pay premium regularly but never get to utilize it. They lack knowledge that insurance is a contingency plan that can protect them from any misfortune.

There is another bright side to getting a bike insurance policy. It is possible to reduce bike insurance premiums and save on the cost of the policy. You should be aware of the factors influencing the insurance providers to offer coverage at low premiums. Here are some useful tips to reduce your bike insurance premium and save you from paying more.  

Compare Various Bike Insurance Policies Before Purchasing 

It is recommended to compare all available bike insurance policies in the market. It is best and easy to compare them online. You can get different bike insurance quotes from several insurance providers.

You can identify the policy that offers higher coverage at a lower insurance premium. You can check the additional benefits and coverage offered by them. Choose the most suitable bike insurance.  

Ensure Timely Renewal of the Policy

The policy will lapse if you don’t renew it within the stipulated due date. This will make the no-claim bonus (NCB) benefit available for just 90 days from the due date. The NCB will also lapse after this period. To avoid a higher premium, renew your bike insurance before it lapses.

Don't Make Small Bike Insurance Claims

You should avoid making petty claims for a dent or scratch. Try to take care of them on your own. If you make such small claims, you will lose the NCB, which you may have for not claiming in previous policy years. Depending on the number of claim-free years, you can reduce the premium cost up to 50%.  

Get All Policies from the Same Insurer

It is always better to get all insurance policies from the same insurance provider, like health insurance, house insurance, travel insurance, etc. Some insurers offer loyalty points if you buy multiple policies from the same insurance company. You can convert these loyalty points for a discount on the bike insurance premium.

Select Appropriate Bike Insurance Add-on Covers

Add-on covers offer extra coverage to the standard insurance policy on payment of an additional premium. Be very careful when selecting add-on covers, as each cover will add to the cost of the premium. By avoiding unwanted add-ons, you can reduce the bike insurance price and ensure optimal financial protection in case of any untoward incident.

Read more - How do Add-on Covers in Bike Insurance Help You?

Type of Two-wheeler

The kind of two-wheeler you choose can greatly impact the premium cost. Superbikes usually attract higher premiums than normal commuter bikes. This is mainly due to the greater maintenance required for an expensive sports bike than a normal commuter motor vehicle. Therefore, you should choose your vehicle wisely.

Opt for a Long-term Insurance Policy

You can opt for a long-term insurance policy of up to three years to lock the premium for the policy period. This way, you will remain unaffected by the annual hike in the third-party premium component. You can also get certain other discounts and avoid the unnecessary headache of yearly policy renewal.  

Make Use of Anti-theft Devices

You can get lower insurance premiums using security devices, such as anti-theft alarms, to protect your two-wheeler. It shows your intention to secure your bike and eliminate any unwanted loss or damage.

To avail of the premium discount, you should ensure that the Automotive Research Association of India (ARAI) has approved the security devices.  

Read more - Is it Good to Purchase Bike Insurance Plans Online?

Select a Higher Deductible

In an accident, a certain percentage of expenses are to be borne by the policyholder. This amount is nothing but the deductible you need to pay during a claim. If you voluntarily increase the deductible amount, you will have to pay a lesser bike insurance premium.

Maintain a Spotless Driving Record

You can get discounts on the premium amount if you have a clean driving record. The chances of paying for challans are less when you drive responsibly by following all the traffic rules.

Moreover, you also avoid the risk of an accident. This makes you less of a liability to the insurance provider. The insurance provider could consider the same and charge you less insurance premium. 


Follow the steps mentioned above to reduce the premium amount of your bike insurance policy. However, you should never compromise on the coverage of a bike insurance policy to reduce the premium cost of insurance.

Read more - How to Calculate Two-wheeler Insurance Premium In India?


1. How do I avail a discount on my bike insurance policy?

Some simple ways to get a discount on your bike insurance policy include purchasing a multi-year insurance policy, maintaining a clean driving record, using NCB, installing security-enhancing devices on your bike, etc.

2. How is the cost of bike insurance determined?

The cost of bike insurance is determined by multiple factors such as the brand and model of your bike, the kind of insurance plan you opt for, your driving record, NCB eligibility, etc.

3. What is the annual rate of increase of a bike insurance premium?

The Insurance Regulatory and Development Authority of India (IRDAI) increases the third-party premium of bikes annually. There may not be uniformity in the rate hike. But on average, it can be around 10-20%. Comprehensive bike insurance premiums depend on the bike, its IDV, the location of registration, the third-party premium component, etc. Here, the rate of increase cannot be ascertained; it will differ from one policyholder to another.

4. What are the different types of insurance premium intervals?

There are various modes of paying the insurance premium amount based on the payment frequency, such as lump sum, monthly, quarterly, semi-annually and annually.

5. What is meant by regular premium?

The money paid in intervals to buy insurance coverage is referred to as a regular premium. You may agree to pay the premium at certain intervals, like monthly or annually. You also have an option to make a single premium payment at the start of the policy to avoid regular payments.

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