While the number of vehicles on Indian roads is on the rise, there is an increase in the number of road accidents as well. Hence, you should buy a comprehensive policy as per the make and model of your vehicle and various risk factors. If you pay heed to the advice of experts, you can cut down the insurance premium drastically.
Here are 13 Tips that will help you to save Money on Two-Wheeler Insurance Premium:
Listed below are 13 tips, which will aid you in saving money on your bike insurance premium:
- Driving Record- If you maintain a clean driving record, you will get discounts on the insurance premium. When you drive safe and follow traffic rules and regulations, you don’t have to pay for any challan. Additionally, you are less exposed to the risk of meeting with an accident. You are less of a liability for the insurance company, as a result, the insurance company charges a nominal two wheeler insurance premium.
- Avail Add-ons- The bike insurance plan can be customized as per your needs. If you travel many miles on a daily basis, you ought to secure your financial safety as you are exposed to a higher risk factor. As per your insurance needs, you can customize the insurance plan by opting for add-on riders.
Daily cash allowance, roadside assistance cover, personal accident cover for pillion rider and no-claim bonus retention rider are some of the worthy add-ons you can avail to enhance the coverage offered by the bike insurance plan.
On the contrary, if you ride the bike occasionally, then basic insurance coverage would suffice.
- Discounts based on age- The two-wheeler insurance provider offers a discount based on age. If your age is in between 32 and 60 years, you will get a discount on the premium.
Insurance companies offer a discount to responsible drivers and people falling in this age group are considered to be responsible.
If you fall into this age group, you will get a discounted premium by default.
- Renew Policy on Time- The two-wheeler insurance plan must be renewed before the due date. Most of the insurance companies offer online as well as offline insurance renewal options.
The policy can be renewed online by entering the policy number and the premium amount. If the policy is not renewed before the due date, you can renew it during the grace period. If you fail to do so, you will miss out on the special renewal benefits offered by the insurance company.
- Installation of Security Enhancing Equipment- When you install security enhancing equipment such as anti-theft alarm, it enhances the security of the vehicle. As a result, it decreases the insurance premium.
In order to avail the discount on the premium, you can explore security enhancing equipment approved by ARAI (Automotive Research Association of India).
When you install such equipment in your two-wheeler, it becomes less of a liability for the insurance provider. That’s why you get to save money on insurance premiums.
- Buy Various Policies from the Same Insurance Company- If you buy a bike insurance policy from the same insurance company from which you have purchased your health insurance or life insurance, you will get a discount on the premium.
- Enquire about Discounts- A few insurance companies offer a discount based on gender and policy tenure. Hence, you should ask the insurance provider about the same.
You can get in touch with the customer care support to find out the various discounts.
- File a Claim Only in Case of Necessity- You must file the claim when you are involved in a major accident or for major damages caused to the vehicle.
Avoid filing insurance claims for minor repairs. As you file a claim, the insurance premium will increase in the coming years.
Additionally, you miss out on the No Claim Bonus as well. For instance, if the damage repair expenses are Rs. 1500 and the NCB is Rs. 5000, paying for the damage repair expense is a wise move.
- Manage the Deductible- The deductible can be managed as per your insurance needs. The deductible is the amount, which the policyholder has to pay from his/her own pocket in case of a claim.
If the deductible is high, the premium will be low. If you can manage expenses after the accident, you can choose a high deductible.
- Policy Tenure- The policy tenure will have an impact on the insurance premium. You can buy or renew an insurance policy for 1 year, 2 years or 3 years. If you choose the long-term bike insurance plan, the insurance company will offer a discount.
- Online Policy- You can buy bike insurance policy online. Earlier, very few companies offered online insurance for bikes. Now, most of the insurance companies are offering online insurance facility. You can buy a new policy as well as renew the existing bike insurance online.
When you buy/renew insurance offline, the agent’s/ brokers’ commission goes from your pocket. As a result, you have to pay a higher insurance premium.
- Comparison of Insurance Policies- The comparison of various bike insurance policies will help you to understand the features and premium of the various plans. You can get quotes from 3 or more insurance companies as it will help you come across the plan that offers the best insurance coverage at best insurance premium.
You can opt for the best insurance policy which covers most of the risk factors that are relevant to you.
- Credit Score- If you have a good credit score, you will not only get loans very easily and you can get lower insurance premiums as well. If your credit score is low, you can take steps to improve the score. You are advised to check your credit score on a regular basis.
Now you know how to save money on the two-wheeler insurance premium, here is everything you need to know about two-wheeler insurance.
Is it Mandatory to Buy a Two-wheeler Insurance Plan?
As per the Motor Vehicles Act, 1988, every two-wheeler owner must buy at vehicle insurance for his/her vehicle plying on the Indian roads.
The comprehensive two-wheeler insurance plan provides coverage for own-damages as well as it fulfils the third-party liability. Even though you are an excellent rider, there are various kinds of risks that are beyond your control. In order to reduce your out of pocket expenses, you ought to choose the best insurance policy as per your needs.
Features of a Comprehensive Two-wheeler Insurance Plan
Here are the features of a comprehensive two-wheeler insurance plan.
- Network garages
- Third-party insurance cover
- Personal accident coverage
- No-claim bonus
- Bike insurance renewal option
Benefits of a Comprehensive Two-wheeler Insurance Plan
Here are the benefits of a comprehensive two-wheeler insurance plan.
- Protection of Vehicle- By insuring your vehicle, you will protect it from accidents and various kinds of damages such as:
- Damage caused due to accident or man-made disasters.
- Partial or complete damage to the vehicle.
- Vehicle loss
- Cashless Garage Facility- The vehicle breakdown will be covered by the insurance policy. The vehicle owner will get assistance at various garages which are a part of the insurance company’s network.
You will not have to pay anything from your pockets (apart from the deductibles) when your bike is being repaired in the garage. The insurance company will pay the bill directly to the garage.
- Transfer of NCB- In case you sell the vehicle, the no claim bonus can be transferred from the current vehicle to a new vehicle. It is possible to transfer the NCB if you port from the current insurance company to a new insurance company.
However, you should follow the guidelines of the insurance company in order to be eligible for transfer of NCB.
What is Zero Depreciation Cover?
Zero depreciation cover in two wheeler insurance provides insurance coverage for day-to-day wear and tear of the vehicle. While it is not a part of the basic vehicle insurance coverage, you can opt for a zero depreciation add-on rider.
Types of Bike Insurance Plans
There are two types of bike insurance plans.
- Liability-only insurance plan
- Comprehensive insurance plan
Here are the details:
1. Liability-only Insurance Plan
The liability-only insurance policy is also known as a third-party insurance plan. Under this plan, the insured’s third-party liability is covered in case of an accident. The plan covers the property damage, bodily injuries and death of the third-party. As a matter of fact, third-party insurance is mandatory under the Motor Vehicles Act, 1988.
The advantage of the liability-only policy is that you can buy it at an affordable price. The plan can be purchased for all kinds of vehicles i.e. private as well as commercial vehicles.
The drawback of the liability-only policy is that it does not provide insurance coverage for own damages.
2. Comprehensive Insurance Policy
The comprehensive insurance plan will offer additional features in addition to the liability-only policy. The vehicle will be protected from various kinds of risks such as theft, damages, man-made disasters and natural disasters. The third-party damage, protection for the two-wheeler and the other riders will be available with the comprehensive two wheeler insurance plan.
It will provide the personal accident coverage for the owner and the rider. By buying a comprehensive insurance policy, you can minimize the costs to the great possible extent.
In a Nutshell
It is possible to decrease your two-wheeler insurance premium based on various factors. You should know about such factors that influence the insurance company’s decision in offering the insurance plan at the lowest premium.
The tips mentioned above might help you in choosing the best plan at the best premium.
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis