With bike companies launching expensive models each year, the insurance costs are also rising up. However, there are many ways for bike owners to bring down the insurance premium. Let’s look at some valuable tips that can significantly reduce insurance premiums-
- Opt for a Long-term Policy
If you plan to use your bike for the next few years, then you can consider purchasing bike insurance that provides cover for three years. Buying such long-term plans can free you from the hassles of annual renewals. Besides, the annual insurance premium of such plans can be lower than the short-term plans.
Moreover, bike insurance premium rates can change every year. However, purchasing long-term bike insurance can shield you from bothering about annual rate changes. Most insurance firms facilitate purchasing long-term bike insurance online through their official website, which is the quickest way to buy bike insurance.
- Choose Your Bike Carefully
A bike insurance premium amount varies as per the bike’s cubic capacity (CC). For example, a 125 CC bike will have a lower premium compared to a 500 CC bike. Therefore, you should carefully consider the insurance cost while buying a new bike.
- Renew Policy on Time
If you forget to renew your policy on time, then it will lapse, and purchasing a new one might cost you more. Besides, you may lose the NCB accumulated on a comprehensive bike insurance policy if there is a significant difference between the due date and the policy renewal date.
Thus, ensure that you mark proper reminders on your calendar and renew your policy on time. You can consider renewing your bike insurance online a few days or weeks before the due date to maintain the continuity of the policy.
- Choose the Add-Ons Carefully
Insurance firms provide numerous add-on options on their vehicle insurance product. Indiscriminately adding all those options can increase your bike insurance premium. Therefore, consider only the valuable add-ons, such as personal accident cover, to keep the premium amount low.
- Invest in Anti Theft Devices
Installing an anti-theft device improves the security of your bike against potential theft attempts resulting in a lesser probability of insurance claims against theft. Therefore, two-wheeler insurance companies encourage people to install such devices by providing discounts on their own-damage insurance premiums.
Remember, the Automotive Research Association of India must approve such devices.
- Transfer Your No Claim Bonus
Have you accumulated a significant No Claim Bonus (NCB) on your old bike insurance? If yes, then you can transfer the NCB from the own-damage insurance on your old bike to the own-damage insurance on your new bike, substantially reducing the insurance premium amount.
- Avoid Modifications
Any customisation or modification on your bike, such as increasing the engine power, enhancing the look, etc., can increase your own-damage bike insurance premium. Avoiding such changes can help save the insurance premium amount.
- Consider Higher Voluntary Deductibles
The general insurance firm does not pay the entire cost of damage while settling an own damage insurance claim. The policyholder needs to pay a certain percentage of the claim, known as voluntary deductibles.
Your own damage two-wheeler insurance premium reduces if you opt for a higher voluntary deductible.
- Join a Recognised Association
If you are an avid rider, then you can consider joining a recognised riders club or association. Many insurance firms provide discounts on their comprehensive two-wheeler insurance premium to members of such associations.
- Choose the Right IDV
Insured Declared Value or IDV is the maximum value of your bike that you can claim from the insurance company in case your bike faces total damage. Make sure the IDV is as per the depreciation framework set by IRDAI based on your bike’s age. Keeping it higher than the permissible limit will not give you a higher value.
Choose the Right Insurance Company
While purchasing your dream bike was a one-time affair, bike insurance is a recurring cost that you must incur for your own safety. Moreover, it should work for you in times of need. Don’t just go for a company offering you the lowest price. Look at the insurance company’s reputation and ease of claim settlement and choose the right one.