Having bike insurance is crucial as it enables bike owners to safeguard their two-wheelers against unforeseen events. In India, two types of bike insurance policies are commonly chosen, third-party liability insurance and comprehensive bike insurance. Among these, comprehensive bike insurance provides coverage not only for third-party liabilities but also for own damage and theft.
Opting for comprehensive bike insurance coverage is ideal for the extensive coverage it provides. Though the cost can be overwhelming, bike insurance should be seen as an investment. Without compromising on the coverage, there are effective ways to reduce the premium. It also helps to understand bike insurance and the factors that affect the premium.
Factors that affect bike insurance premium
Here are the factors that affect the premium of two-wheeler bike insurance in India-
- Bike model and make
The bike’s model and make contribute significantly to the premium calculation. High-end bikes with more expensive parts and higher repair costs will have higher premiums. Engine capacity is another determinant; bikes with larger engines generally have higher insurance premiums due to their increased power and risk. - Age and driving experience
The age and driving experience of the policyholder are also considered. Younger riders, especially those below the age of 25, are typically charged higher premiums as they are perceived as more prone to accidents. - Claim history
The claim history of the policyholder is another vital factor. A clean claims record demonstrates responsible driving, leading to a lower premium. Conversely, a history of accidents or frequent claims can result in a higher premium. - Geographical location
Geographical location also plays a role, as insurance premiums are higher in areas prone to theft, accidents, or natural calamities. Urban areas with heavy traffic and higher crime rates usually experience higher premiums compared to rural areas. - Add-ons and coverage options
Additionally, the add-ons and coverage options selected by the policyholder affect the premium. Popular add-ons include zero depreciation cover, roadside assistance, personal accident cover, and medical expenses coverage. The more add-ons chosen, the higher the premium will be. - Other factors
Factors like the duration of the policy, the type of coverage (comprehensive or third-party), and the insurance company’s rating and reputation also impact the premium amount.
Tips to save money on two-wheeler bike insurance in India
Having comprehensive bike insurance policy in India is essential for protecting your bike and finances. Here are valuable tips to save money on two- wheeler bike insurance in India.
- Choose your bike sensibly
As mentioned above the premium of the bike depends on the model and type of the bike. As high-end bikes will have a higher premium, one should take a bike which is on budget, has good features and will have a decent premium. If you are keen to get a high-end luxury bike, be ready to shell out more money for the bike insurance premium. - Choose add-ons wisely
Comprehensive bike insurance policies come with optional add-ons that enhance coverage but also increase the premium cost. Evaluate your needs and select add-ons that are essential and relevant to your situation. For example, if you ride in a flood-prone area, opting for the Engine Protection add-on can be beneficial. Avoid unnecessary add-ons that you would not utilise, as they will only increase your premium. - Maintain a good driving record
Your driving record plays a vital role in determining the bike insurance premium. Insurance companies often offer lower premiums to individuals with a clean driving history, as they are considered less risky. Avoid traffic violations, accidents, and speeding tickets to maintain a good driving record. This will help you negotiate for lower premium rates during policy renewal. - Accumulate No Claim Bonus (NCB)
A No Claim Bonus is a reward in the form of a discount given to the insured who does not file any claims during the policy period. NCB can significantly reduce your premium cost when renewing your policy. Make sure to accumulate your NCB by not filing minor claims and enjoy the benefits of lower premiums in subsequent years. - Install safety and anti-theft devices.
Insurance companies value the safety and security measures you take for your bike. Installing anti-theft devices, such as GPS trackers and alarm systems, can reduce the risk of theft. This can result in lower premium rates as insurance providers consider your bike less prone to theft or damage. - Opt for voluntary deductibles
Policyholders can select predetermined amounts known as a voluntary deductible, that is, the amount they pay out of their pocket during a claim settlement. You can reduce your premium cost by opting for a higher voluntary deductible. However, ensure that the deductible amount you choose is affordable for you in the event of a claim. Saving a premium to pay more at the time of a claim is not the most sensible thing to do. - Opt for a long-term policy
The chances to get a higher discount on the premium are more when you opt for a policy for a longer duration. A standard bike insurance policy is for a year but many insurers give the choice to take for a longer time. This not only saves money for the insured but also reduces the hassle of renewing the policy every year. - Look for discounts
When taking insurance for your bike always find out what kinds of discounts are being offered by the insurance company. Some of these can be a loyalty discount or a discount to pay the premium for the year in one go. Most of the time monthly payment turns out more expensive than an annual payment. - Attend safe riding courses
Insurance companies often give discounts to the insured who have done safe riding courses. These courses teach bike riders defensive riding tactics, and as this lowers the probability of accidents, the insurer sees it as a low risk and, thus, offers discounts.
Saving money on bike insurance in India is possible with careful consideration and understanding of your insurance requirements. Remember to review your policy periodically to ensure you have the best deal that suits your needs and budget.Disclaimer – The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
