Bike insurance is necessary so you won’t worry about unexpected costs in an accident or theft Purchase a five-year insurance coverage if you recently purchased a brand-new bike or scooter and have chosen to go with basic third-party bike insurance. The bike insurance premiums can be expensive and burdensome.
Read on the 7 intelligent ways to save money on your bike insurance.
1. Compare Insurance Policies Online
Compare bike insurance online for the time to renew coverage or new coverage. It saves you money in many significant ways:
● Cost Saving: By comparing multiple companies, you can get the best deal and know how much you save compared to getting that same coverage elsewhere.
● Coverage Options: Different insurance providers provide different features and add-ons to a policy. Comparing will help you find the best coverage for your needs.
● Personalisation: Internet comparison sites allow you to customise coverage levels and premiums to balance cost and protection.
Pro Tip
When evaluating the policy, you must look for customer reviews and a claim settlement ratio. Reviews would tell you that the insurer is reliable and that its service would be as expected. At the same time, the claim settlement ratio ensures the company’s efficiency in handling the claims, giving peace of mind when it matters.
2. Opt for a Higher Deductible
A deductible is the amount you must pay before your insurance coverage goes into effect for a claim. For example, if you have a Rs.500 deductible and incur Rs.2,000 in damages, you’ll pay the first Rs.500, and the insurer will cover the remaining Rs.1,500.
3. Maintain a Clean Driving Record
A clean riding record also helps one receive lower rates for insurance. Insurance firms tend to offer discounts to riders who have no accident or claim history as evidence of the reduced risks associated with them.
Tips for Maintaining a Good Record
● Obey Traffic Rules “Remember all those motorcycle speed limits, stop signs and other traffic rules to avoid accidents and tickets.
● Be aware of what is happening around you and try to predict the behaviour of other motorists. This proactive approach will help you avoid potential dangers.
● Enrolling in motorcycle safety courses can improve your riding techniques and qualify you for further insurance discounts.
● A well-maintained bike will keep the possibility of mechanical failures that lead to accidents at bay.
Safety and responsible riding contribute to a clean record, which keeps insurance premiums down.
4. Use the No Claim Bonus (NCB) Wisely
NCB in bike insurance is the incentive insurance companies offer their policyholders for not raising any claim during a policy year. This bonus typically saves a considerable part of your premium over time because it suggests your history of safe riding and low risk.
NCB Benefits
Typically, NCB can offer percentage savings that increase with each claim-free year. For instance:
|
Number of Years |
NCB Discount |
|
1st year |
20% discount |
|
2nd year |
25% discount |
|
3rd year |
35% discount |
|
4th year |
45% discount |
|
5th year |
Up to 50% discount |
This accumulation may lead to enormous savings on your premium amounts, a significant motivational factor for maintaining a healthy riding track.
5. Install Anti-Theft Devices
Installing anti-theft devices in your motorcycle can significantly bring down your insurance costs. Insurance companies often offer discounts to policyholders who ensure safety precautions for their bicycles since these anti-theft devices diminish the chances of theft.
Some of the most commonly used anti-theft devices which insurers accept include:
● GPS Trackers
● Disc Locks
● Alarm Systems
● Chains and Locks
● Immobilisers
6. Choose Only Necessary Add-On Covers
When you opt for bike insurance, you should understand add-on covers that can add value to your coverage. Add-ons are as follows:
● Zero Depreciation Cover: This will ensure that you recover the value of your bike parts in case of a claim.
● Engine Protection Cover: This covers any damage to the engine due to water entering it or oil leakage. Certain conditions favour this add-on.
● Roadside Assistance: Towing, flat tyre change, and emergency fuel refill guarantee relief before the long ride.
● Personal Accident Cover: In case of injuries caused during the accident, this cover will provide monetary support for the safety and well-being of the rider.
7. Renew Your Insurance Policy on Time
If there is an early renewal of your bike insurance policy, you are guaranteed proper coverage and avoid additional costs from the undesirable situation. Failure to renew the policy will lead to:
Risks of Late Renewal
● Higher Premiums: After your policy has lapsed, reissue of the same might cost more from the insurers’ side as they charge you higher premiums, thinking you are a high-risk group.
● Loss of No Claim Bonus: Failure to renew on time leads to a loss of No Claim Bonus, whereby you lose some discounts for claim-free years.
In conclusion, simple changes like comparing insurance policies, opting for a higher deductible, maintaining a clean riding record, using the no-claim bonus (NCB) wisely, installing anti-theft devices, adding only necessary add-ons and renewing your policy on time can lead to significant savings on bike insurance. You must review your current policy, compare options, and take the above steps to start saving today. Being proactive with your policies will be best to make savings.
