2 wheeler insurance provides financial security to the bike owners against financial loss due to accidental damage or other unfortunate events like theft, fire, natural calamities, etc.
It is also a mandatory requirement to get a third party 2 wheeler insurance in India for all bike owners as per the law. A third party 2-wheeler insurance provides financial assistance in case of damages caused to the third party due to your bike accident.
Although a mandatory requirement, several Indian’s avoid getting their bike insurance renewals as they find quite expensive, so here are few tips to reduce the premiums on bike insurance renewals:
Compare 2-wheeler Insurance online:
By comparing different 2-wheeler insurance policies online, you should be able to evaluate not only the best 2-wheeler insurance in India but also the cheapest 2-wheeler insurance which would match all your insurance needs at the convenience of your home.
Avoid Unnecessary Add-Ons:
2-wheeler insurance companies offer several additional riders such as Engine protection, Zero depreciation, Roadside assistance, etc. along with the main policy. These additional riders increase the scope of your insurance coverage but also increases the premiums of your 2-wheeler insurance.
Hence, you should select these add-ons wisely and avoid purchasing unnecessary add-ons which would help in reducing the cost of premiums on your bike insurance renewal.
Deductibles are a portion of total claim that the policyholder may choose to pay it themselves. Most 2-wheeler insurance buyers opt for deductible as 0, in this case, the insurance company would pay 100% of the claim amount, however, keeping the deductible as 0 increases the cost of your premiums.
You can increase the deductibles to reduce the cost of premiums. However, do not increase deductibles randomly, make sure to check that increasing deductibles does not put you in liquidity crises and you are comfortable paying the said portion of the total claim.
Bear expenses on small damages by yourself
2-wheeler insurance companies provide discounts on premiums in the form of No Claim Bonus (NCB) for every policy year you do not make a claim, this helps in reducing the premiums of your bike insurance renewals greatly.
Discounts on premiums under Non-Claim Bonus benefits:
|Discounts in Premium under NCB
|If claim is taken in last 1 year
|If claim is not taken for 1 year
|If claim is not taken for 2 years
|If claim is not taken for 3 years
|If claim is not taken for 4 years
|If claim is not taken for 5 years or more
Now, assume if your bike insurance policy premium is Rs 6000 and you do not make a claim in 1 year then the discount on premiums during renewal will be of Rs. 1200, and hence your bike insurance renewals would cost you only Rs. 4800.
By taking claims for small damages, these NCB benefits are lost. Hence, to keep your 2-wheeler insurance premiums low it is recommend to pay for small damages on your own.
Reducing the IDV on your bikes
Adding new parts such as alloy wheelers, spoilers, etc to upgrade your bike performance or looks would increase the IDV of your bike and thus increase the premiums as well. You may avoid adding additional parts to reduce the IDV and premiums.
Make sure to inform the insurer of any modification do to the car that increases the IDV as your insurance policy may get invalidate in case the IDV is increase without proper intimation to the Insurer.
Reduce Insurance coverage on old vehicles
You can opt to have only the Third-party insurance or a comprehensive insurance with very low IDV for your old bikes to reduce the premiums.
Avoid insurance policy to lapse
A lapsed insurance policy does not get the NCB benefits. Hence, make sure to get your bike insurance renewal on time to continue getting the NCB benefits on your premiums.