Diwali is around the corner and many of you must be planning to make big purchases this time of the year. Whether it is a home, electronic appliances or a vehicle, making new purchases is considered auspicious during the festive months. Two-wheelers are a very popular choice among many of us. Some of us replace our old bikes for new while some buy the very first bike.
With a bike, you also buy an insurance policy because two-wheeler insurance plans are mandatory in India. However, buying two-wheeler insurance requires additional investments on policy premiums. When it is the festive season, saving money is important because there are various expenses to take care of.
If the added expense of a two-wheeler cover is worrying you, relax. Your bike insurance policy need not be expensive. Here are some tips:
10 Tips To Save Money On Bike Insurance Premium
- Be careful when choosing the type of policy you need: Bike insurance policies can be of two types – third-party bike insurance or comprehensive policy. Third-party bike insurance plans have limited coverage and are cheap. If you use your bike sparingly or if your bike is very old, you can buy only a third-party policy and pay minimal premiums.
- Select the IDV carefully: If you are buying a comprehensive policy, the Insured Declared Value (IDV) would impact the premium calculation. You are given a minimum and maximum IDV value and you can select any value in that range. Don’t go for a very high IDV as it would shoot up the premium unnecessarily. Always choose the IDV keeping in mind the value of your bike and the age-related depreciation.
- Install safety devices in your bike: Installing safety devices in your bike reduces the chances of claims. For instance, anti-theft devices help in reducing the possibility of theft and ABS systems help in reducing the possibility of accidents. When you install safety devices, the company’s claim probability also reduces and the company allows you a premium discount.
- Become a member of an automobile association this Diwali: There are recognized automobile associations whose memberships earn you a premium discount. So, become a member of such associations and you can reduce the cost by up to 10%.
- Use your policy’s NCB: If you are renewing an existing bike insurance policy and have not made a claim in the previous year or years, you stand entitled to a No Claim Bonus (NCB). This NCB earns you a premium discount which ranges from 20% to 50% depending on the number of successive years in which no claim was made. So, use this discount to save on the premium outgo.
- Don’t make smaller claims: Whenever a claim is made you lose the accumulated NCB of your policy. So, if the claim is of a smaller amount don’t raise it with the insurance company. Pay off smaller claims from your pockets and save the NCB.
- Choose a voluntary deductible: Your bike insurance policy already has a compulsory deductible which is the amount that you have to pay in case of every claim. The insurance company then pays the rest. You can also choose the voluntary deductible and choose to pay an additional amount of claim yourself voluntarily. When you do so, the company’s claim liability reduces and so the company allows you a premium discount.
- Choose add-ons which are required: Comprehensive bike insurance plans allow add-ons which help in increasing the coverage of the plan. However, add-ons incur additional premiums too. So, you should always be careful when choosing add-ons. You should choose only those add-ons which you require to reduce the unnecessary increase in premium.
- Always renew bike insurance on time: If you renew bike insurance on time, you not only get continued coverage, but the renewal premiums are also low. If the policy has expired and then you go for renewal, the company charges a higher premium. So, always renew your policy in time to save on the premium cost.
- Buy two-wheeler insurance online this Diwali: The online marketplace allows you to compare and buy two-wheeler insurance online. When you compare you can find a plan which combines the best coverage features at the lowest premium rates. So, always compare and buy two-wheeler insurance online.
Use these tips to save money on your bike insurance policy. The money you save can be used for other expenses which, as we all know, are plenty during the festive season.