Some basic tips can help you save a lot of money on your two-wheeler insurance premium.
Two-wheeler is one of the most inexpensive and convenient options to commute in India. However, two-wheelers are more at danger of being engaged in road accidents than other vehicles. As a result, two-wheeler insurance is essential to have a financial safety which can protect you from financial liability in the event of an accident.
India is home to many people who believe that two-wheelers insurances are a waste of money because they've never used their insurance coverage before. But we need to understand that, bike insurance is a contingency plan, and an adverse occurrence might strike at any time. An insurance policy can be a lifesaver in such situations.
Factors affecting the Insurance Premium
It is possible to reduce the cost of insurance premiums in a variety of ways. But before you do, it's crucial to understand the elements that determine your insurance policy's premiums and how they work.
Type of Insurance Policy
A big aspect in determining your insurance rate is the type of insurance policy you select. A basic third-party insurance coverage has a cheaper premium than a comprehensive insurance policy. The reason for this is the fact that a third-party insurance policy offers less protection than a full coverage policy.
Type of Vehicle
A big part of your insurance rate is determined by the type of vehicle you drive. Many factors are taken into account when determining the premium amount like brand and model of the vehicle, city of registration, and accessories installed. A vehicle's Cubic Capacity or CC also affects your premium. It is more expensive to buy insurance for a sports bike with a high horsepower rating than a commuter motorcycle.
Choosing the correct add-ons
If you want to extend the coverage of your policy, you can choose from a variety of add-ons. Coverage against depreciation, co-passenger injury, and more are examples. As a result of these add-ons, the cost of insurance goes up.
No claim bonus (NCB)
This bonus is given to policyholders who have not made any claims on their policy over the prior year. It's a kind of incentive to ride safely. Insurance premiums are reduced by up to 50% based on the number of years in which you haven't filed a claim. There is a voluntary excess that the policyholder must pay out of pocket in the event of a claim. Premium costs will decrease if the policyholder increases their voluntary contribution.
Tenure of insurance
In addition, insurance companies now provide a variety of discounts due to the increased competition in the insurance industry. If you acquire a long-term insurance coverage for a period of up to three years, you may be eligible for discounts and advantages.
Tips to reduce insurance premium of your two-wheeler
You can follow the below mentioned tips to reduce the Insurance premiums of your two wheeler.
Choose your vehicle carefully
The type of the two wheeler is the most important component in determining the premium cost. As a rule, super bikes and sports bikes have a greater premium price than conventional motor bikes. More displacement and power means a larger premium. Most pricey sports bikes are insured at hefty premiums.
Third party motorcycle insurance
An Indian Motor Vehicles Act of 1988 mandates the purchase of a third-party insurance policy. If you cause damage or injury to a third person or their property while riding your vehicle, this is the least expensive type of insurance. It also covers the vehicle owner. Although the insurance policy's premium is inexpensive, it gives very limited protection against bad situations, according to the company.
Go for a multi-year insurance
If you choose for a multi-year insurance policy instead of an annual coverage, you may be able to save money and avoid the headache of yearly policy renewals. In this approach, you can lower your insurance premiums.
Avoid small claims
An owner of a vehicle should not make petty claims about dents or scratches on his or her vehicle. No-Claim Bonus (NCB) is granted to insured who has not filed a claim in the preceding years. If you have been claim-free for a certain number of years, an NCB can cut your insurance price by up to 50%.
Compare of different policies
Online comparison is the best approach to acquire two-wheeler insurance. Insurance comparison sites exist where you can compare policies based on coverage, features, and premiums.
Installing anti-theft system
Other ways to minimise the premium on your two-wheeler include installing an anti-theft system that will reduce the danger of theft. Due to this, you can receive a discount on your two-wheeler insurance.
Selecting proper add-ons
Your price will increase for each additional cover you select. Choose only those additional covers that are truly necessary and avoid the ones that are not.
Taking membership of motor bikes riding associations
Some insurance firms give special discounts and advantages to members of recognised vehicle, touring, or riding associations.
Choosing higher deductibles
When a motorcycle is damaged or stolen, the insurance company does not cover all of the costs of repairs and retrieval. The policyholder is responsible for a fixed percentage of the expenses. Insurers will charge reduced premiums to policyholders who choose to increase their deductible.
Indians rely heavily on two-wheelers as a means of transportation. With their ability to manoeuvre through congested and small roads, they are very popular. The two wheelers have the added benefit of being economical to operate and two-wheeler insurance plans are also affordable to purchase. While a basic two-wheeler insurance coverage is sufficient to keep you out of trouble, a comprehensive plan is the preferable choice in many cases. The appropriate add-on covers are also available. Be sure that your two-wheeler insurance is not very costly.
Despite the fact that you may want to save money on insurance premiums, it is not a good idea to compromise on coverage. When purchasing an insurance coverage, do not allow the premium to be the sole determining factor.