Bike insurance is essential for every two-wheeler rider in the country. The premium you pay depends on the type of plan you choose, with higher premiums offering more extensive benefits and coverage. However, paying attention to a few important aspects of your two-wheeler insurance policy can reduce your premium amount.
What are they? Keep reading to learn practical ways to save on your bike insurance premium.
14 Pro Tips to Reduce Your Bike Insurance Premiums
Here are some effective ways to cut down on the premiums you pay for your bike insurance policies:
1. Choose a Higher Deductible
The deductible is an essential aspect of insurance. It refers to how much money you are ready to spend from your pocket before the insurance plan provides financial coverage. In this regard, opting for a higher deductible is always good. The reason is that it demonstrates your ability to contribute towards the risks in exchange for lower premiums.
However, you must ensure that the deductible amount is within your reach, especially if you need to claim in the future due to an accident.
2. Compare Different Policies Online
To make some cuts on bike insurance premiums, you can first check for different bike insurance online. Even for similar plans, the premiums can vary significantly between insurers. Take your time to research and compare coverage options, premiums, and benefits.
It helps you identify the best policy at the cheapest rates and determine which bike insurance provider best safeguards your two-wheeler.
3. Maintain a Clean Riding Record
The experience earned by a rider translates directly into the insurance premium. Riders with no record of accidents are considered safe clients by insurance companies; hence, they are given lower premiums. If you do not commit an offence, get into accidents frequently or make minor claims to create a good history, it will help you when renewing your policy.
4. Install Anti-Theft Devices
High-end bikes may be charged higher premiums. To reduce your premium, consider installing anti-theft devices, like alarms, GPS tracking systems, or wheel locks. These security measures reduce the chances of your bike being stolen and will compel insurance companies to lower your premium.
5. Choose a Long-Term Insurance Policy
The tenure of your bike insurance policy directly influences the premium price you have to pay. Long-term bike insurance plans are more economical in this case as the premium amount remains the same throughout the tenure. Also, insurers offer discounts on Own Damage (OD )for multi-year bike insurance policies.
Furthermore, such plans have higher No Claim Bonus (NCB) discounts than single-year bike insurance policies.
6. Stick with Your Current Insurance Provider
Maintaining an existing relationship with your insurer can work to your benefit. Many companies reward loyal customers with perks like loyalty discounts, which can help you lower the cost of your bike insurance premium. Staying with the same provider makes negotiating better terms for your policy easier.
7. Use a Bike Insurance Premium Calculator
A two-wheeler insurance premium calculator is a handy tool to estimate your insurance costs before purchasing a policy. You can compare premium rates from different insurers by entering details like your bike model, registration year, and desired coverage. This allows you to make an informed decision and select a policy that offers the best coverage at the lowest cost.
8. Select Only Necessary Add-Ons
Add-ons like roadside assistance, zero depreciation cover, or engine protection enhance your policy’s coverage. However, selecting unnecessary add-ons can increase your premium. Assess your specific needs and opt only for those add-ons that provide real value while keeping your premium manageable.
9. Renew Your Policy on Time
Renew your insurance policy on time to avoid lapsed coverage. Delayed renewals can result in higher premiums and the loss of accumulated No Claim Bonus (NCB), a discount you earn for not filing claims in a policy year. Being proactive with renewals helps you maintain benefits and avoid unnecessary costs.
10. Avoid Filing Minor Claims
Small damages like dents or scratches can often be repaired cheaply without involving your insurer. By avoiding claims for such minor issues, you can preserve your NCB, significantly reducing your premium during renewals. This method helps save money in the long run.
11. Pay Your Premium Annually
Although insurance companies allow you to make monthly payments, it is far better to pay the premium in a lump sum. Sometimes, monthly payments have additional processing charges, so choosing an annual payment option may be worthwhile.
12. Improve Your Credit Score
Insurance providers may use your credit score to determine your premium. A higher credit score signals financial responsibility, reducing the likelihood of costly claims. Work on boosting your credit score to enjoy lower bike insurance rates.
13. Lower Your IDV
One effective way to reduce your bike insurance premium is by lowering the IDV (Insured Declared Value) of your two-wheeler. The IDV in bike insurance determines the amount your insurer will pay in case of total loss or damage beyond repair.
By reducing the IDV, you lower the coverage amount, which, in turn, reduces your premium. However, be mindful that while this lowers your premium, it also reduces the claim amount you will receive.
14. Avoid Bike Modifications
Customising your bike with accessories or modifications can increase your premium, as these changes often raise repair or replacement costs. To keep your premium low, stick to the original design and avoid unnecessary alterations.
Lowering your bike insurance premium does not mean you have to sacrifice coverage. By keeping a clean riding record and taking advantage of discounts, like installing anti-theft devices, NCB, etc., you can reduce your premium without cutting back on protection.
Additionally, using a bike insurance premium calculator can help you compare different plans and choose the one that provides the best coverage at the most affordable rate. Follow these expert tips and strategies to get the best coverage while saving money on your bike insurance.
