Know All About Cheap and Affordable Bike Insurance Policies

What Is a Cheap Bike Insurance?

A cheap or affordable bike insurance policy is a basic two-wheeler insurance plan designed to offer essential or any mandatory coverage at the lowest premium. Such policies usually focus on meeting mandatory requirements while keeping in mind the minimal costs. Typically, there are three types of two-wheeler insurance policies offered by the insurance companies in India:

• Third-Party (TP) Liability Insurance: A TP or third-party bike insurance policy is a mandatory policy that covers legal liabilities for injuries, death, or property damage caused to a third party in a road accident by the insured two-wheeler.
• Own Damage (OD) Cover: The OD or own-damage bike insurance protects your bike against theft, accidents, fire, vandalism, and natural disasters.
• Bundled and Long-Term Policies: It is a combination of third-party and own damage coverage. It is also known as a comprehensive bike insurance policy.

Who Should Opt for a Cheap Bike Insurance Policy?

Cheap bike insurance policies would be an ideal choice for:

• Older bikes with lower market value or IDV.
• Occasional riders with minimal daily usage.
• Budget-conscious owners looking for the basic requirement to avoid challans or legal repercussions.

Tips to Get the Cheapest Bike Insurance Policy

By following the tips below, you can get the cheapest bike insurance deal:

1. Comparing Two-Wheeler Insurance Policies Online

   By comparing 2-wheeler insurance policies online, you can evaluate multiple policies based on premium, coverage features, add-ons, claim settlement ratios, etc. At Policybazaar.com, you can get a clear picture of the insurance market as you can compare various quotes offered by different insurers and getting the best deal in your budget.

2. Opt for Essential Coverage

   Generally, insurance companies offer tempting & valuable add-ons like engine protection cover, zero depreciation cover, etc., at an additional premium. By selecting only the essential cover based on your bike's age, its usage, and the risk associated, you can keep the premium low. For example, if you have an older bike or you use it occasionally, a basic & mandatory third-party plan might be sufficient.

3. Maintain a Clean Riding Record

   Insurance companies often consider your past traffic violations and accident history while calculating the premium. A clear riding history reflects safe riding behaviour and helps in receiving NCB discounts, which ultimately lower your insurance premiums.

4. Leverage No-Claim Bonus (NCB)

   The NCB or No Claim Bonus is a reward for not making any claims during the policy term. It can significantly reduce your renewal premium. This NCB discount can range from 20% to 50% over consecutive claim-free years and can be availed of while renewing your own-damage policy.

5. Increase Voluntary Deductibles

   A deductible means the amount you agree to pay on your own while settling the claim. Opting for a higher voluntary deductible helps in reducing the premium. However, ensure you choose a deductible amount that can be comfortably afforded by you without any financial stress.

6. Long-Term Policies

   In India, buying long-term policies (5 years TP + 1 year OD) for all the new bike owners is compulsory. It saves you from annual premium hikes and removes the hassle of yearly renewals.

Key Considerations Before Choosing a Cheap Policy

Here are four key factors that you must consider before choosing a cheap bike insurance policy:

1. Understand Your Needs

   Every bike owner has a different set of insurance needs based on various factors. Choosing the right type of policy can prevent you from overpaying or being underinsured. When a bike is older or has a lower resale value, a basic third-party policy might suffice. However, if it is a newer or has a higher value, it's worth investing in a comprehensive plan with essential add-ons.

2. Read the Fine Print

   Read the terms & conditions of the policy carefully to avoid surprises during claims settlement. It is better to understand exclusions, limits on coverage, and compulsory deductibles to avoid hidden costs. Moreover, be more careful about claim processing time, cancellation policies, and add-ons T&CS.

3. Consider the Insurer's Reputation

   While choosing a company, look for after-sales services, claim settlement process, customer reviews, etc. Therefore, choose insurer with high CSR, positive customer feedbacks, and excellent ratings before making any decision.

4. Evaluate the IDV (Insured Declared Value)

   The IDV is the maximum amount the insurer will pay if your bike is stolen or totally damaged. It directly impacts your premium and claim payout. While a lower IDV can reduce your premium, it also means a lower payout in case of a total loss. Underestimating or overestimating your bike's IDV can lead you in trouble during the claims settlement. Therefore, choose an IDV that reflects your bike's current market value to avoid unnecessary troubles.

   Finding affordable bike insurance does not have to be overwhelming. By understanding the types of coverage and knowing what is right for you will help you in getting a cheap bike insurance plan that fits your needs.