How Bikers Can Save More On Two-wheeler Insurance Premium?
Updated On Sep 25, 2023
Tips to Save Money on Your Two Wheeler Insurance Premium
In India, people choose to travel by two-wheelers because they can easily manoeuvre through busy traffic and provide the excitement of off-road excursions. But as more and more cars hit the road, you need to make sure your bike is insured, not simply to follow the law but also to shield yourself from unanticipated financial obligations. Although paying insurance premiums is a necessary investment in your security and comfort, there are a number of ways to save costs without sacrificing coverage. We will explore the various tactics that motorcyclists can use to significantly reduce the cost of their two-wheeler insurance in this extensive guide.
Table of Contents
- Evaluating the Essentials of Two-wheeler Insurance
- Types of Two-Wheeler Insurance Policies
- How to Lower Premium Costs?
- Negotiate Professional Discounts
- Select Long-Term Plans
- Comparing First Party and Third Party Insurance
Evaluating the Essentials of Two-wheeler Insurance
Having a solid grasp of the factors that affect the amount of your insurance premium is essential before looking at the many ways to save money on it. The kind of policy selected, the age and model of the car, the policyholder's driving record, and the policyholder's location are some of the variables that affect the insurance rate.
Types of Two-Wheeler Insurance Policies
Mandatory by Indian law, this policy protects you against third-party liability but does not cover damage to your own car.
Comprehensive insurance offers more comprehensive protection, covering not just third-party liabilities but also vehicle damage from theft, accidents, and natural disasters. It is a more well-rounded type of coverage that also permits addition of various add-ons for an improved safety net.
Standalone Own Damage Insurance
While buying a new bike, bike owners have to buy long term policies (5 years’ Third party policies), hence to safeguard their own vehicle, they have to buy StandAlone Own Damage Insurance. This type of insurance safeguards their own vehicle against any damage that might arise.
These are extra coverages that supplement the protection provided by your whole policy. They include covers such as roadside assistance, engine protection, and zero depreciation, among other things.
How to Lower Premium Costs?
Now that we have a basic grasp, let's investigate the many methods for lowering premium costs without sacrificing necessary coverage.
Making Use of No-Claim Bonus (NCB)
An important perk provided by insurance firms to customers who file no claims during the policy year is called a No-Claim Bonus. When you renew, this bonus shows up as a reduction in the premium amount. These are important things to remember:
- Benefit Accumulative: The NCB increases each year without a claim, having the potential to save a significant amount of money over a number of years.
- Convertible: Remarkably, the NCB can be transferred if you choose to purchase a new two-wheeler because it is associated with the policyholder rather than the car.
Managing Your Voluntary Deductibles
The part of the claim amount that you choose to pay out of pocket during the settlement is known as a voluntary deductible. Saving money on premiums can be achieved by choosing a greater voluntary deductible. Take into account the following while choosing optional deductibles:
- Diminished Premiums: Lower the premium amount in exchange for a higher optional deductible.
- Fair-minded Strategy: Selecting a deductible that won't put a hardship on your budget in the event of a claim is wise, nevertheless.
Having said that, please be mindful of selecting very high voluntary deductibles since it could be a case that you end up paying most of the claim amount from your pocket in case multiple claims arise in a year.
Setting Up Safety Equipment
Improving the safety profile of your car can save you money on premiums while also safeguarding your most valuable asset. That's how:
- Anti-Theft equipment: You can get premium discounts by installing anti-theft equipment that have been approved by ARAI.
- Safety Features: You can further lower the premium amount by adding extra safety features like anti-lock braking systems.
Examining Policies Before Buying
There are many different insurance companies and plans on the market, so it makes sense to compare them before choosing one. Make use of internet resources to compare insurance according to coverage, premium costs, and customer feedback.
- Extensive Investigation: Identify the policies that provide the most coverage at the most affordable cost by conducting in-depth research.
- Client Testimonials: Take into account ratings and reviews from clients to determine the insurer's dependability and level of service.
Always compare bike insurance plans provided by various insurers online. You can visit websites such as insurancedekho.com, and get the best possible insurance quotes by looking at more than 20 plans.
Making Profits from Membership Benefits
In terms of insurance rates, you may benefit from membership in reputable car associations.
- Automobile Associations: You may be able to receive a discount on your two-wheeler insurance premium if you are a member of an association such as the Automobile Association of India.
- Specialist Rebates: Certain professions are considered low-risk, thus some insurers provide their members discounts. Investigate these choices to get more discounts.
Making Use of Bundle Offers
Bundling numerous policies together often results in premium discounts from insurance carriers. If you already have home or health insurance, think about getting your two-wheeler insurance from the same company.
- Multiple-Policy Rebates: Choose to purchase multiple plans from the same insurer to take advantage of discounts.
- Personalised Bundles: At a lower cost, personalised packages can also be discovered, which combine several types of coverage.
Taking Safe Riding Instruction
Not only may taking safe riding classes improve your riding abilities, but they may also lower your insurance costs.
- Proper Lessons: Choosing lesson providers that have been approved by reputable groups.
- Improvement of abilities: By improving your abilities, these courses can help you ride more safely and possibly lower the perception of risk attached to your profile.
Selecting the Proper Insurer
A key component of your attempt to reduce premiums is selecting the appropriate insurance. This is the method to follow:
- Credibility: Choose an insurance provider with a solid track record in the industry, paying close attention to their customer service and claim settlement percentage.
- Tailored Programmes: Seek out insurance companies that provide customisable plans so you can adjust the coverage to meet your unique requirements and cut costs.
Timely Renewal of Policies
Making sure your insurance is renewed on time will help you avoid paying higher rates linked to plans that have lapsed.
- Avoid Lapses: If a policy lapses, it may result in the loss of accrued benefits, such as NCB, and an increase in the premium at renewal.
- internet Renewal: Make use of internet resources to renew policies quickly, easily, and without issues.
Negotiate Professional Discounts
- Savings based on Profession: Insurance companies view some professions as less risky than others. You may be able to receive premium discounts if you work in one of these professions. Ask your insurer about this and find out if your line of work qualifies for a discounted rate on your premium.
- Organisational Savings: Insurance firms occasionally give staff members of particular organisations corporate discounts. For special premium discounts, find out if your employer has any partnerships with insurance companies.
Select Long-Term Plans
- Long-Term Policy Advantages: Premium savings can be achieved by choosing long-term insurance over yearly policy renewals. Because long-term policies ensure business for a lengthy period of time, insurance firms frequently provide savings on rates.
- Easy Procedure: You can save money and avoid the hassles of annual renewals by opting for a long-term policy; it's a win- win situation.
What Should One Buy - Comprehensive or Third Party Insurance?
Comparing First Party and Third Party Insurance
First Party Insurance
Third Party Insurance
What is it?
A comprehensive bike insurance policy provides you with total protection against all hazards by combining own-damage and third-party liability insurance!
Third-party bike insurance is a legal requirement in India that covers damages to third parties.
No, it's not required.
Is it Mandatory?
No, it is optional.
Yes, in accordance with the Motor Vehicles Act of 1988, it is required in India.
This policy provides broad coverage. You will have coverage for loss, damage, and theft of your bike. It offers financial assistance in the event that your bike, another person, car, or piece of property sustains any form of damage.
With this policy, coverage is restricted. All that a third-party liability bike insurance will shield you from is harm or loss to other people.
What is Not Covered?
Decreasing value, personal accident insurance, mechanical or electrical failure, driving without a valid licence or in violation of traffic laws, and driving after the policy's expiration are all excluded.
It does not cover things like damage to your own car, personal accident insurance, mechanical or electrical failure, driving without a licence or breaking the law, or driving after the policy has ended.
Add-ons including Roadside Assistance, Consumable Cover, Zero-Depreciation Cover, and Return to Invoice Coverage are among the options available to you with this insurance.
This policy solely covers personal accidents.
Why Should You Buy?
You should get it if you require comprehensive coverage for your bike in addition to accessories.
You should get it if you don't ride your bike too often or if it's too old.
A first-party bike insurance coverage has a higher premium than a third-party policy. The premium is calculated keeping in mind the risk factor of the bike, market value, location, make and model of the bike
As the insurance regulator, IRDAI, sets the prices for this type of policy, third-party bike insurance is less expensive.
Your claim is handled by your insurance provider. Depending on the kind of policy you have bought.
The claim procedure is overseen by the Motor Accident Claims Tribunal.
Getting enough insurance coverage is a duty that comes with riding a two-wheeler in India's congested lanes and highways. Even though it may seem like a big investment, using the above-discussed tactics might result in significant premium savings on your two-wheeler insurance without sacrificing the necessary coverages.
To ensure that you are adequately covered against potential hazards without burning a hole in your pocket, keep in mind that the goal is to strike the ideal balance between cost and coverage. Therefore, let yourself travel with your two-wheeler knowing that you have comprehensive insurance that won't break the bank.
- In two-wheeler insurance, what is a No-Claim Bonus (NCB) and how does it lower rates?
In the event that you did not file any claims during the preceding policy year, you may be eligible for a No-Claim Bonus, which is a discount on the premium amount. With each year without a claim, it builds up and might eventually result in significant premium reductions.
- How will my two-wheeler insurance rate change if I choose a larger voluntary deductible?
Answer: By agreeing to pay a larger share of the claim amount during a settlement, choosing a greater voluntary deductible can reduce your insurance rate. But it's crucial to choose a deductible level that won't put a strain on your budget should you need to file a claim.
- Is it possible for my insurance price to go down after installing safety devices?
Yes, as they lower the chance of theft or accidents, installing ARAI-approved anti-theft and safety equipment on your two-wheeler may qualify you for insurance premium discounts.
- Is it advantageous to evaluate several insurance plans before making a purchase?
In order to choose a policy that provides the best protection at a reasonable cost, it is helpful to compare the coverage, premium rates, and customer reviews offered by various insurance companies.
- Can I lower my premium by joining reputable automotive associations?
The Automobile Association of India is one reputable automobile association whose membership can qualify you for lower rates on your two-wheeler insurance.
- How do bundle deals affect the cost of insurance?
In response, insurance providers frequently give rate reductions to customers who buy numerous policies from them. This may include combining your health or house insurance with your motorbike insurance to get a total premium reduction.
- Will taking a safe riding course affect the cost of my insurance?
Yes, you may be able to reduce your insurance cost by completing a safe riding course from a reputable organisation. This is because the completion of the course shows that you are a responsible and trained rider, which lowers the perceived risk associated with your profile.
- How might prompt policy renewal help reduce premium costs?
Renewing your policy on time keeps you from losing collected advantages like the No-Claim Bonus and saves you money on premium increases that come with lapsed plans. In the long term, it saves money and keeps your coverage continuous.
- How can I choose an insurer that will save me money on premiums?
Answer: Take into account an insurer's reputation, claim settlement percentage, and calibre of customer service while selecting one. Selecting insurers that provide customised plans can also help you save money on premiums by customising the coverage to meet your needs and preventing wasteful expenses.
- Can I alter my two-wheeler insurance policy to reduce the cost of my premiums?
Indeed, a lot of insurers provide tailored plans that let you choose the coverage that best suits your needs, saving you money on premiums by assisting you in avoiding pointless expenses. To balance coverage and cost, carefully consider and select the add-ons.