6 Tips to Save Money on Your Bike Insurance Costs
In a country like India, with heavy traffic and narrow roads, bikes and two-wheelers are a preferred mode of transport. With third-party liability insurance being mandatory for all two-wheelers, all bike owners need to buy bike insurance when they buy a new vehicle. They also have the option of buying a comprehensive policy that offers coverage for damage/loss to you or your vehicle too. Today, we will talk about comprehensive policies and offer some tips to help you save money on your bike insurance costs.
When you purchase a new bike, the dealer will try to sell you an insurance policy. Before buying that, we recommend that you ensure that you know what you need from the policy. While a third-party liability policy makes sense since it is mandatory, if your use demands a comprehensive policy, then you should opt for that. Here are some tips to help you save money on your two-wheeler insurance costs.
Tip 1. Choice of bike
While we understand that you can’t choose a bike based on the bike insurance premium, if you are unable to make up your mind between two/three bikes, then this can be an important factor to consider. As a rule, expensive bikes have high premiums. On the other hand, buying a used bike or an older model has a lower premium since repairing and replacing parts is cheaper.
Tip 2. Compare plans
One of the first things that you must do when you plan to purchase a bike insurance plan is to research the options available to you and compare plans. You can go to an aggregator website to compare multiple policies at one go. Once you finalize the company, go to their website and check the probable premium using the premium calculator. This is essential because different insurers can charge different premiums for similar features. It is also important to ensure that you read through the policy wordings and check the claim settlement procedure and the claim settlement ratio of the company. Add-ons play an important role in ensuring comprehensive coverage and impact the premium rates as well. Take a complete view of the plans available and compare them to get the best deal.
Tip 3. Policy tenure
You can purchase third-party bike insurance for longer tenures (the own-damage cover has to be renewed every year). Most insurance companies offer long-term third-party bike insurance policies with a validity of up to five years. This is beneficial since the premium is locked for the tenure of the policy, and you do not have to bear the brunt of the yearly increase in third-party policy rates. However, remember that you will still have to renew the own-damage cover every year. But the legally-mandated third-party cover will be locked for three years.
Tip 4. Talk to the insurer about discount offers
We live in competitive times. Along with other businesses, insurance companies also try to attract as many people as possible. Hence, they keep coming up with discounts and offers regularly. Hence, after you have gone through the features and benefits of the plans on the insurer’s website, give the company a call and ask for discounts or any offers that they are currently running. Some providers offer gender-based discounts, discounts based on the tenure of the policy, etc. This can help you reduce the premium and make the policy cost-efficient.
Tip 5. Take steps to protect your two-wheeler
A comprehensive bike insurance policy offers financial protection against damages or losses caused by accidents, collisions, theft, natural disasters like floods, earthquakes, etc., and man-made disasters like riots, vandalism, etc. While some things are not in your control, you can take measures to secure your bike and reduce some risks. For example, you can install an anti-theft device to prevent theft, park your bike in an enclosed space to prevent vandalism, and safeguard it from damage due to floods. Insurers tend to offer discounts to bike owners who take extra care to protect their vehicles.
Tip 6. Don’t file small claims
One of the best ways to save money is to work towards claiming your No Claim Bonus for subsequent years. This bonus is awarded by the insurer to bike owners who don’t file a claim during a policy term. This is a progressive bonus and can go up to 50% of the own-damage premium component. Hence, if you file a claim for a small amount, you can lose out on a potentially large discount when you renew your two-wheeler insurance policy.
Remember, the primary reason for buying a bike insurance policy is protection against financial losses arising from any damage or loss to your bike or third-party caused by your bike. While it is good to endeavour to keep the premium amount low, don’t compromise on the coverage. Many vehicle owners tend to go overboard with the thought of reducing the premium and end up buying a policy with coverage that does not cover all aspects.
Hence, it is important to always remember to choose a policy and add-ons based on your needs and then use the tips mentioned above to bring the premium down. The best way to do this is to understand your insurance requirements before you start researching the market for options. Good Luck!