4 Money-Saving Ideas for Bike Insurance Renewal

In India, it is mandatory for all bike owners to have a third-party bike insurance policy. These policies offer coverage for damage to a third-party person or property due to an accident involving your bike. However, they don’t include damages to you or your two-wheeler. Hence, many people opt for a comprehensive two-wheeler insurance policy that includes third-party liability and own-damage insurance.

Insurance policies are valid for a fixed term, after which they lapse. To keep them active, you need to ensure regular renewal of two-wheeler insurance. A lapsed policy offers no coverage and exposes you to legal and financial risks. Today, two wheeler insurance renewal is easy and hassle-free since most insurers allow two-wheeler insurance renewal online.

If you have opted for a comprehensive bike insurance policy and are nearing the renewal date, then you must start looking at options to get coverage at a lower premium rate. Here are four ideas to help you save money for bike insurance renewal.

Leverage No Claims Benefit (NCB) Optimally

When you opt for a comprehensive two-wheeler insurance policy, you get coverage for damage to your bike, too along with third-party liability coverage. This means that if your bike meets with an accident or mishap and gets damaged, then the insurer reimburses the costs of repair and/or replacement of parts. However, if you start filing a claim for every small repair, then you might lose the No Claim Bonus benefit offered by most insurers.

No Claim Bonus or NCB is a discount offered by insurers on bike insurance policy renewals for policyholders who do not file a claim during a policy term. This is a progressive discount that increases with the increase in the number of subsequent terms that a claim is not filed.

If you have had a claimless year, then make sure that you check the NCB benefit offered by the insurer at the time of renewal. Also, avoid filing a claim for small repairs to ensure that your NCB benefit remains intact. You can also opt for a long term two wheeler insurance policy to get a benefit on the premium.

Use Voluntary Deductible

A voluntary deductible is the percentage of the claim amount that you agree to bear. Hence, if you file a claim for ₹10,000 and agree to a voluntary deductible of ₹3000, then the insurer will reimburse ₹7000, and you will have to pay ₹3,000 from your pocket to get the repair done. Insurers offer discounts on premiums for a higher voluntary deductible amount. However, remember that this reduces your claim amount. Hence, make sure that you choose the deductible carefully.

Review Add-on Covers

A comprehensive policy allows you to choose from a range of add-on covers to customise the coverage as per your needs. These add-ons increase the premium of the bike insurance policy. At the time of renewal, make sure that you review the add-ons with your policy and assess if you still need them. Make sure that the premium paid for the add-on covers is worth the price by evaluating your needs.

Install Anti-Theft Devices

A comprehensive bike insurance policy offers reimbursement for stolen bikes. If you live in an area where bike thefts are increasing, then the insurer might increase the premium of your bike insurance plan. However, if you install the best anti-theft device, then the insurer can feel assured that you are taking steps to reduce the possibility of theft and offer a discount on the premium. Make sure that the anti-theft device is cost-efficient and approved by the Automotive Research Association of India (ARAI).

Summing Up

With most insurers offering bike insurance policies online, you can compare insurance providers and plans before renewing your policy with your existing insurer. This can help you find the most cost-efficient policy for your two-wheeler. Also, the tips mentioned above can help you save money while renewing online your two-wheeler policy.