• Tips To Reduce Two Wheeler Insurance Premium

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    Two Wheeler Insurance
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    Based on a report, more than 60% of the vehicles on the roads of India run without a valid insurance policy. Perceiving it as just an expense year after year, two-wheeler vehicle owners choose to rather not renew their vehicle insurance policy - as they surmise that the odds of them meeting with an accident is almost nil. As per the Motor Vehicles Act, 1988, all vehicles on the roads need to by law have a motor vehicle insurance policy - the basic third-party vehicle insurance to be particular. When one buys a bike, he/she can choose an insurance policy of their choice. One can either go for a third-party insurance policy or a comprehensive insurance policy.

    The basic third-party insurance policy which is mandatory as per the Government mandate offers coverage to the third party involved in the accident. The biggest drawback of this type of insurance policy being that the policyholder will have to cover the cost of damages caused to his/her own vehicle and medical expenses as well. However, a comprehensive two-wheeler insurance policy takes care of this factor. It offers coverage for both the third party as well as the policyholder.

    Though the comprehensive insurance policy offers complete protection for the vehicle owner as apart from the third-party two-wheeler insurance policy, the premiums are more expensive. In order to ensure that motorists across the country are obliged to renew their insurance policy, insurance companies have given bike owners several options to reduce their premiums - knowing that this is possibly the primary reason why motorists fail to renew their insurance policy. Keeping that in mind, we’ve listed out a few ways you can reduce your bike insurance premium without having to compensate on the coverage that comes with the insurance plans.

    Tips To Reduce Two Wheeler Insurance Premium

    Listed below are some ways a motorist can reduce his/her bike premium when making a policy renewal or buying an insurance plan:

    • Consider the bike you wish to insure

    The premiums set by insurance companies is based on the type of bike that the applicant or existing policyholder has. The make and model of the bike and the engine capacity is taken into consideration by insurance companies when setting the premium rate. For example, choosing a standard vehicle rather than a superbike will certainly fetch you a cheaper premium rate.

    The make of your bike matters

    When setting the insurance premiums, insurance companies consider the price of replacing parts and the cost of spare parts. Owning a vehicle which has parts that are readily available and are cheap will contribute towards the premiums being set cheaper by insurance companies.

    The area of where you purchase an insurance policy matters

    The premiums by insurance companies are set based on the area where the bike is bought and will be ridden in. If the area is prone to accidents or natural calamities, the premiums will be set higher than usual.

    The age of your vehicle

    The older your bike the more will be the insurance premium. In fact, bikes older than 15 years require a fitness test when availing or renewing an insurance policy. Consider using bikes that are relatively new in order to get the best possible premium rate.

    No-claim bonus

    Your track record will certainly play a big role when it comes to deciding the premium of your insurance policy. If you have not made a claim, the insurance company will offer you a discount in your premium. The discount increases with every claim-free year. Keeping that in mind, if you do meet with a small accident and the cost to repair the damages is nominal, it’s advisable to cover the cost from your own pocket. By doing so, you will protect your no-claim bonus and can get a discounted premium for your bike insurance policy the following year.

    Keep a lookout for insurers

    If you feel that your current insurer is charging you too much, keep a lookout for other insurers in the market as well. Since the competition is stiff, insurers offer the same benefits for a cheaper premium rate and your no-claim bonus is transferable. If you feel that you need to make the change, go ahead.

    The benefit of General Insurance companies

    One can avail a health insurance, life insurance and even a motor insurance plan from any general insurance company. If you have bought all your plans from the same insurer, in most cases they will give you a discount in the premium rate.

    Your bike security matters

    Having a private garage and taking extra steps to boost the security of your bike will convince the insurer that no unforeseen circumstances can take place as you have got it all under control. This will enable the insurer to offer you a cheaper premium rate. If your bike is parked on the street and lacks proper security, the insurance company will hesitate to give you a cheaper insurance premium.

    Opt for the multi-year insurance policy

    Realizing that a good number of motorists in the country are failing to renew their two-wheeler insurance policy year after year, insurance companies recently have rolled out the multi-year insurance policy option. As of now, this option is only available for two-wheelers. Two-wheeler owners now have the option of availing either a two-year or a three-year insurance policy rather than the single-year policies of old. In fact, if the vehicle owner chooses to avail a multi-year policy and pay for it altogether, they will receive a discount on the premiums of the second and the third year. With just one premium payment, two-wheeler vehicle owners can be insured for a span of three years, making them avoid the nuisance of renewing the policy every year.

    Keeping your bike in good condition is also a primary factor when it comes to the insurance company setting your insurance premium rate. Lastly, two-wheeler vehicle owners can now choose to renew their insurance policies online and need not have to visit the insurance office to do the same. The renewal can be done in a matter of minutes, saving one’s precious time.

    Here are a few ways to lower your two wheeler insurance premium:

    • The accessories added to the bike after purchasing the vehicle are also taken into account while calculating the premium amount. So avoid installing unnecessary accessories which will result in higher premium.
    • Imported bikes can result in high premium amount so unless you can afford the premium and pay for the repair from your own pocket, do not opt for it.
    • Do a thorough research online to compare insurance policy plans and insurance providers.Online insurance comparison will allow you to compare quotes, reviews, claim settlement ratios, discounts, offers, etc. which will help you make a clear decision on which insurer to buy from.
    • Purchase bike insurance online to avoid any commission to agents, middlemen or service providers as it will cost you higher if you purchase through offline channels. The insurance company will also provide great discounts online as they will be dealing directly with the customers and with having to spend on any distribution cost for agents.
    • It is necessary to insure your bike with comprehensive policy as insuring the bike with just the third-party is never enough.
    • Buy add-on covers only if you require. Do not buy add-on covers that are not necessary for your bike. Remember, the add-on covers cost extra above your basic premium.
    • Have a clean and steady driving record as this will help you avail discounts from the insurer. This way you can save on premium amount as well.
    • Choosing higher deductible amount is one way of trimming down your two wheeler insurance premium. Voluntary deductible is the percentage of amount that you agree to pay personally for every claim you make and the rest is paid by the insurer. The higher the deductible lower is the premium amount. But remember this is a monetary loss to you as you will be paying a large sum of amount for the repairs.
    • Do not claim the bike insurance policy for small claims. By claiming for small damages, your no-claim bonus will become zero. No-claim bonus is a reward that the insurer provides for not claiming the insurance in that particular year. A minimum of 20% and maximum of 50% can be availed. So it is advised no to claim for insurance unless the repair costs more.
    • If you have installed any safety devices in your bike like anti-theft device or any security instruments that is approved by the ARAI, then the insurer will provide discounts on the same which will lower the premium amount.
    • Buy a bike that fits your requirement and can be balanced while driving by you. If you fancy a luxury bike like Harley Davidson or Royal Enfield, etc. the premium will also increase based on the cubic capacity of the bike. So chose your bike wisely considering all the factors.
    • One of the most important factor that will help you lower your premium or keep it steady is by renewing the two wheeler insurance timely. If the insurance passes the expiry date, on renewal of the insurance the premium amount will also increase. So do not neglect renewing insurance on time.

    With a little remembrance and following few safety precautions you can definitely lower the insurance premium. Every insurer has different discounts other than the standard according to the needs of the customer. Read the documents carefully to know more information.

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