The cost of your bike insurance premium depends upon factors such as the model of the bike, its engine’s cubic capacity, its age, and market value.
The automobile market is replete with two-wheelers, ranging from bikes for basic commuting to premium sports bikes. Once you have picked a two-wheeler that meets your needs, the next step is to shop for a cost-effective bike insurance plan. This will help you not only protect your financial health but also get necessary coverage in the event of mishaps.
Here are 9 tips that will help you reduce the cost of your bike insurance premium.
1. Select the right type of bike insurance
Purchasing a third-party two-wheeler liability cover is mandatory. It offers compensation in case of damage to a third party (which may be a person or property). A comprehensive plan, on the other hand, offers wider protection, covering your bike as well, at a higher premium.
If you are in the market for just the essential cover, pick a third-party bike insurance and enjoy low premiums. Want the best of both worlds? Pick an Own Damage bike insurance plan along with the third-party cover to get reimbursed for expenses related to your own bike and medical needs.
2. Research bike insurance plans and invest directly
Shortlist plans that offer the maximum benefits at the lowest cost. For instance, one plan may offer the convenience of a quick, fully digital claims process, helping you avoid physical trips. Then, make it a point to shop directly with your insurance provider, as this can help you avoid middlemen charges.
3. Avoid extra personal accident covers
Having a personal accident cover is also a requirement, but you do not need one if this is your second bike. This is because the PA cover protects you, not the vehicle. So, make sure to avoid extra PA covers that may be bundled in with comprehensive plans.
4. Preserve your No Claim Bonus
When you go a year without making a claim on your insurance, you get a No Claim Bonus. This in turn helps you get a discount on your bike insurance premium. Depending on the number of claim-free years, your discount can run up to 50%. This can result in big savings. This is why experts recommend making claims carefully to preserve the NCB, when possible.
5. Transfer your No Claim Bonus
You may want to change insurance providers once your current bike insurance expires. In such a case, do not forego the reward you earned for driving responsibly and avoiding small claims. It is possible to get a lower premium by transferring your NCB. Make sure to keep your NCB certificate and other documents ready.
6. Drive safely at all times
Insurance companies evaluate the risk you pose before deciding the premium too. A healthy track record is a great way of reducing the cost of your bike insurance.
7. Indicate that you have anti-theft devices
If you already have an ARAI-approved vehicle tracking system that you can use for your new bike, show it to your insurer. Having such devices reduces the risk associated with loss of property and will fetch you a lower premium.
8. Sidestep add-ons and modifications
You may consider add-on benefits like emergency roadside assistance to be superfluous. Opt out of such covers to reduce the cost of your insurance. Similarly, refrain from modifications, as these increase the cost of eventual repairs and hence the cost of your insurance. In fact, you may require add-on covers for a modified bike.
9. Consider a long-term bike insurance
Find out if your provider offers a cover for 3 years instead of 1 year. This way you avoid the need for renewals and are also protected against price hikes.
Finally, ask for a discount, especially if you have other financial dealings with your insurance provider. Once you use these tips, you’ll be well on course to securing pocket-friendly yet wholesome coverage!