Bike insurance will be included in the maintenance cost of your two-wheeler or car. Hence, you should take precautions to choose the right vehicle to minimize your insurance cost. There are other important facts which will have a great impact on bike insurance cost . You should be aware of these six tips to cut down your insurance cost drastically.
Tips to reduce your insurance premium
• Choose the right bike - You are advised to choose the right bike to reduce the insurance premium. The insurance premium will be high when you buy an expensive bike. Instead of choosing a luxurious and newly introduced bike, you can buy a standard bike. Insurers are aware of the normal maintenance cost of standard bikes and they will offer a policy at a lower premium. On the other hand, the availability of spare parts and servicing cost will be very high for luxurious and sports bikes. Hence, the insurance companies will charge a higher premium for such kinds of vehicles.
• Comparison of policies – You should not forget in comparing the two wheeler insurance companies.The insurance aggregator’s website is ideal to figure out various plans to fulfill your needs. As you fill-up the online form, you will be able to choose the most appropriate insurance plan as per your needs.
• Policy tenure – Bike insurance can be purchased for more than one year. You can go for either 3-year or 5-year bike insurance policy so that the premium will be low. There will not be any stress in renewing the premium every year when you go for a multi-year insurance policy.
• Discounts – Insurance companies offer various kinds of discounts. The discounts are based on age, gender, location, employment, etc. You can ask the insurance agent or the customer support representative of an insurance company to get more information in this direction. Some discounts are applied by the insurance company automatically as per the information provided in the proposal form. Learning special driving skills, installation of special accessories and membership in an automobile association are some of the reasons which will give you a discount on the premium.
• Avoid small claims – Insurance companies will reward you for safe driving and accident-free history. If you claim your insurance policy, the no-claim bonus will become zero. Hence, the no-claim bonus should be used judiciously as per your needs. As far as possible, avoid small claims.
• Enhance bike security – To improve the security of your vehicle, you can install special locks and safety-enhancing accessories on the bike. The insurance company will reward by taking steps to protect your vehicle.
There are other tips which can also be considered to make the most of your investment.
Bike insurance policies
Type of policy –There are two types of bike insurance policies. They are a third-party insurance policy and comprehensive insurance policy.
Third-party bike insurance plan
• A third-party policy will protect you from all the risks that arise from the third-party.
• The third-party policy will not offer cover to the insured.
• The personal accident cover was made mandatory for all the bike riders effective September 1, 2018. You will get a minimum cover of Rs. 15 lakh. You can also buy additional cover by paying the extra premium.
Old vehicles can be covered by choosing the third-party bike insurance policy.
Package or comprehensive insurance plan
• A package or comprehensive insurance plan as the name suggests will offer complete coverage.
• Your vehicle, rider and the third-party will be covered by the policy in a very efficient manner.
• You will be able to subscribe to various kinds of add-on riders to enhance the protection.
• The Compulsory Personal Accident (CPA) is mandatory for all kinds of vehicles in India. You will be covered by at least Rs. 15 personal accident cover.
• All the new bikes which are being registered on or after September 1, 2018 should be covered by CPA.
• The insurance company will also provide options to customers so that as much as Rs. 50 lakh will be offered by the insurance company.
If you are insuring a new vehicle, you are advised to buy a comprehensive policy so that your interests are protected in the best possible way.
How to choose the best bike insurance policy?
• Be aware of the benefits – You should be aware of the benefits, features and insurance premium of various insurance policies so that you will settle for the best.
• Assess your insurance requirements – You should assess your insurance requirements. The insurance requirements vary from one person to another person. It varies from one bike to another bike. The place, profession and different factors will have an impact on the premium. After assessing your requirements, you should opt for all kinds of coverage.
• Most appropriate policy –You should not go for the cheapest policy but for the most appropriate policy that can fulfill your needs. For a new bike, enhanced protection is advised. You can subscribe to ‘nil depreciation’ cover so that the insurance premium will pay damages without deducting the depreciation.
• Engine protection – When you subscribe to engine protection cover the vehicle insurance company will pay the compensation to restore your bike even though there is complete damage to the engine. If you go through the water-logged areas, the engine will be damaged badly. The unfortunate event will be covered by the policy and you will be able to recover the loss.
• Deductible – If you opt for the deductible, it is possible to reduce the premium. The insurance company will pay the rest of the amount after you pay the deductible amount mentioned in the insurance policy. If the deductible is higher, the insurance premium will be lower. You should remind the fact that the out of pocket expenses will increase while claiming the policy when you choose a higher deductible.
• Buying multiple policies from the same insurer – If you buy multiple insurance policies from the same insurance company, the insurance company will offer a discount on the premium. You can club two or more vehicles together and the group insurance policy will help youcut down the cost. On the other hand, you can also buy other general insurance products from the same insurance company so that the insurance company will reduce the premium on the bike insurance policy.
• Renew the policy from the same insurance company –If you renew the policy from the same insurance company, there will be a great impact on the premium. The insurance premium will reward you for your loyalty to the insurance company.
• Renew the policy before the expiry date – You are advised to renew the insurance policy before the expiry date. If you renew the insurance policy after the expiry date, the insurance company will treat it as a new policy. You will lose all the benefits in the form of discounts. If you renew the policy 90-days after the expiry date, you will lose the no-claim bonus as well.
• Join riding association – By taking the Automobile Association’s membership, you can reduce the insurance premium.
• Buy policy online – You can buy a policy online so that the insurance premium will be low. The insurance company can reduce the administrative expenses in offering the online policy.
• Insurance calculator – When you buy a policy online, you can calculate the insurance premium instantly with the help of an insurance calculator. The insurance calculator comes with simple features. It will be helpful in avoiding the unnecessary features and you can subscribe to most relevant features.
• Cashless garages – The insurance company will have a tie-up with various cashless garages spread across the country. You should choose a company which manages tie-up with reputed garages in your area so that you will get cashless service at the garage.
Insurance claims and claim settlement
The insurance purpose will be fulfilled when you can claim the policy without any difficulty. Hence, you should go through the claim settlement ratio of the insurance company.
The claims process should be a simple and straightforward approach. You should follow the guidelines of the insurance company in filing the claims so that the claim will be processed quickly.
The insurance company will provide the policy with exclusions. You should be aware of exclusions. If you would like to include certain kinds of exclusions, you can purchase add-ons. By buying add-ons, the insurance premium will increase. However, the protection will be very much enhanced.
Customer support –The insurance company should offer the best customer support in various ways. You should be able to reach customer support at any time and the issue should be resolved immediately.
Even though there are many two wheeler insurance companies, you should be able to choose the best product to cover your vehicle, yourself and third-parties. The insurance premium should not be burdensome for your pocket and you should be able to claim the policy without any difficulty. The tips shared by experienced users will help you choose the right bike insurance policy!