7 Fundamental Tips to Decrease Your Two-Wheeler Insurance Premium
Among the different modes of transport available in the country, two-wheelers are the most preferred options for Indians. Compared to four-wheelers, where the drivers have to wade through congested traffic, a two-wheeler is one of the best ways of transportation. For a highly populated country like India, two-wheelers have risen in popularity because of the comfort and efficiency they offer. However, as your reliance on the vehicle increases, it is important you ensure its safety. One of the simplest ways you can safeguard the future of your vehicle is by getting two-wheeler insurance.
What is bike insurance?
Bike insurance is an insurance policy contract between the two-wheeler owner and the insurance company, wherein the insurance company will provide the owner with financial coverage in the event the bike is stolen or gets damaged from an accident. As per the Motor Vehicles Act (MVA) 1988, bike insurance is a legal obligation in India for all two-wheelers driven on the road. With a bike insurance policy, you will be financially covered for any accidental injuries caused while driving the bike on Indian roads. In a bike insurance plan, you will have to pay a premium amount for a specified tenure, and you will get the insurance coverage against the premiums.
Can you save on your two-wheeler insurance premium?
When you’re looking out for a two-wheeler insurance plan, it is natural that you would want to get the plan at the lowest cost possible. The premiums on a bike insurance plan depend on several factors. You must understand the factors that affect the insurance premium, so you can make a profitable decision before you purchase or renew the insurance plan. You can follow some of the tips listed below to reduce the amount you pay as insurance premiums.
Seven fundamental tips to decrease your bike insurance premium:
- Compare different insurance plans:
It would be best if you compared the multiple insurance plans available in the market for your two-wheeler. One of the simplest methods to do this is by comparing two-wheeler insurance online. You can directly visit the website of different insurers to learn about the plans available for you. To compare different insurance plans, you must look for the coverage and the additional benefits offered by the insurer. Along with this, when you compare the different plans, you will understand which plan offers you a higher coverage at a lower premium cost. It would help if you opted for buying the two-wheeler insurance online as it will help you compare different plans. Along with this, it also gives you access to various tools and features. For instance, if you opt for purchasing TATA AIG bike insurance online, you get access to their bike insurance calculator, which can be beneficial for comparing plans and calculating premiums.
- Refrain from filing small claims:
When you renew a bike insurance plan, the insurance company will offer you a No-claim bonus (NCB) if you haven’t filed an insurance claim during the policy tenure. This enables you to avail of a 50% discount in premium with the NCB. However, if you raise a claim for small or minor damages, you will miss out on the NCB discount. Therefore, it would bode well for you if you handled minor damages out of your own pockets.
- Pick suitable add-ons:
Add-ons offer additional coverage to the policyholder for specific situations. However, all the add-ons included in an insurance policy come at a specific amount. The inclusion of these add-ons will lead to an increase in the premium amount. Therefore, you must choose the add-ons mindfully, as redundant add-ons will only increase your premium amount.
- Renew your insurance plan on time:
Bike insurance plans have to be renewed after a specified tenure. When you purchase a bike insurance plan, there’s a specified date before which you must renew your insurance plan and not let it lapse. If the insurance plan lapses, the NCB benefit is valid only for a specified period of 90 days from the due date and will lapse later. Therefore, it is imperative you get the bike insurance renewal done before the due date to stay away from a high premium.
- Include anti-theft devices:
Insurance companies offer a low bike insurance premium if you increase the safety of your bike by adding security devices like anti-theft alarms. The additions of these devices ensure the insurance provider that you’ve taken preventive measures to protect your vehicle from unwanted losses. You must ensure the anti-theft devices are approved by the Automotive Research Association of India (ARAI) to lower the insurance premium on the amount.
- No-claim bonus (NCB):
If you’re buying the insurance plan or renewing it, you must make sure you use the NCB to avail of a discount on the premium. The No-claim bonus will provide you with a discount on the premium amount if you do not file a claim in a few consecutive years of the policy. The discount can go up to 50% if you refrain from filing a claim for five consecutive years. You can also get the NCB benefit when you transfer the policy by providing the NCB certificate from your old insurer to your new insurer.
- Look for discounts:
Many insurance companies offer their customers various discounts to promote their insurance plans. It would help if you asked for discounts from your insurance company, as these discounts can help you reduce the premium amount on the insurance plan.
If you are a bike owner in India, you must buy two-wheeler bike insurance to protect your vehicle from unforeseen events. With a two-wheeler insurance plan in place, you can be at peace knowing that your vehicle is covered. To uphold the policy, you have to pay a premium amount to the insurance company for a specified tenure. While multiple factors affect the premium amount, you can follow a few tips discussed above to lower the amount you pay as premiums.