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Two-wheeler vehicles are considered one of the most affordable forms of personal transport. A large part of the Indian population uses two-wheelers for daily commute. Since the government has made it mandatory for all vehicle owners to have at least third-party insurance coverage, two-wheeler owners must ensure that they have a good comprehensive insurance policy to protect them against unexpected damages and accident-related expenses. In this article, we’ll take a look at some tips to reduce two-wheeler insurance premiums.

Tips to Reduce Two-Wheeler Insurance Premium

Here are some ways you can reduce the premium on your two-wheeler insurance policy:

 

1. Choose the Right Bike/Scooter

The cost of your two-wheeler and your two-wheeler insurance policy are directly related. When you choose a standard or older model, insurance companies tend to offer competitive premium rates, simply because replacement and repair costs will be significantly lower in such vehicles. On the other hand, when you choose an expensive bike with a powerful engine (high CC), you will be charged with a hefty premium. This is because the bike may be classified as exotic and the repair/replacement costs will be significantly higher than the standard models. Furthermore, bikes with powerful engines are often driven at high speeds, which further increases the risk factor for insurance companies.

 

2. Avoid Making Small Claims and get NCB Benefit

If you don’t make claims during the policy term, you will receive a No Claim Bonus or NCB. A No Claim Bonus is a discount on premium awarded to drivers for driving responsibly and not making any claims during a particular year. When you claim small damages, you will lose out on the No Claim Bonus for that particular year. Therefore, if your vehicle suffers small damages such as a small dent or a scratch, you can pay for it from your pocket. This can earn you a bigger discount on your two-wheeler insurance premium in the future.

 

3. Bundle Your Insurance Policies

Insurance companies want their customers to buy more than just one policy from them. For instance, if you have a home insurance policy, the insurer might provide you with a discounted premium if you also buy your two-wheeler insurance policy from them.

 

4. Compare All Available Options

Make sure to browse through all two-wheeler insurance options available online while buying one. Most insurance companies have their insurance plans and features listed on their websites where you can compare all the different plans available. Once you have a good idea of what each plan offers and what it costs, you can choose the least expensive plan that suits your requirements to reduce your bike insurance premiums.

 

5. Choose Riders Carefully

If you are buying a comprehensive insurance policy, there may be several add-on covers you can choose from and it may be tempting to include all of them for increased protection of your vehicle. However, you might not need all of the extra riders. So, choose the riders you want, carefully, and leave out the ones you do not need to save cost on insurance premiums.

 

6. Use an Anti-Theft Device

Insurance companies will lower your two-wheeler insurance premiums if you have secured your vehicle with an anti-theft device. An anti-theft device reduces the chances of your vehicle being stolen, so insurance companies have to bear lower risk. However, you must make sure that you buy an anti-theft device approved by the Automotive Research Association of India (ARAI), or you won’t be eligible for the discount on two-wheeler premiums.

 

7. Driving Record

One of the factors that insurance companies look into when determining premiums for drivers is their past driving records. If an individual has a clean driving record with no history of traffic offences and accidents, he will be eligible for a lower premium compared to someone who has a history of multiple accidents.

 

8. Pay Premiums Annually and Buy a Long-Term Plan

Insurance companies will offer you better prices if you choose a long-term insurance plan for your two-wheeler. For instance, buying a three-year insurance plan for your two-wheeler may be cheaper than a one-year insurance plan. Additionally, insurance companies offer discounts to individuals who pay their premiums yearly instead of monthly premium payments.

 

9. Buy Policy Online

If you are looking to buy an insurance policy for your two-wheeler, it is a good idea to check out all the insurance options available online. Since there are no agent commission costs involved when buying an insurance policy online, the plans available on insurance companies’ websites are generally cheaper than buying them in person.

 

10. Join a Bike Riding Association

Some insurers provide small to medium discounts to customers who belong to a touring, riding or automobile association. If you are an avid bike rider, you can join one of the local biking groups in your area and take advantage of the discounts on insurance premiums.

Why do you Need a Comprehensive Two-Wheeler Insurance Policy

A comprehensive two-wheeler insurance policy will protect your vehicle against any accidental damage and third party expenses. You have the option to customise your insurance policy as per your needs by choosing the add-on covers you need and getting rid of the covers you don’t. With a comprehensive insurance policy in place, you can rest easy knowing that you will be financially covered in the case of an unexpected accident, damage or theft of your two-wheeler.

Conclusion

The above-given tips to decrease your two-wheeler insurance premium will certainly help you save some money on insurance costs. However, it is important to ensure that you buy an insurance plan that fulfils all of your requirements and not settle for an inferior plan just because it is cheaper. You can take a look at the variety of two-wheeler and bike insurance plans available at Finserv MARKETS and choose a plan that suits your needs. Buying an online two-wheeler insurance plan with Finserv MARKETS is easy, convenient and hassle-free. We also offer additional benefits such as bike roadside assistance, cash-free servicing and much more.  

FAQs on Reducing Two-Wheeler Insurance Premium

  • ✔️How can I get a discount on bike insurance?

     You can get a discount on bike insurance by:

    1. Buying a long-term insurance plan.

    2. Claiming NCB.

    3. Having a clean driving record.

    4. Installing an anti-theft device on your bike

  • ✔️Is insurance mandatory for old bikes?

     Yes, insurance is mandatory even on old bikes. As per the Motor Vehicles Act, 1988, all vehicles should have a third-party insurance cover.  

  • ✔️ Which insurance policy is best for bikes?

     You should get a comprehensive two-wheeler insurance policy that covers all your requirements such as accidental damage cover, bike theft cover etc.  .

  • ✔️ Can bike insurance be done online?

     Yes, most insurance companies have their insurance plans available on their websites. You can browse through different plans and choose one that is suitable for you. Online insurance plans are just as valid as plans bought offline or in person.  

  • ✔️What is the cost of insurance for my bike?

     The cost of insurance for your bike will depend on several factors:

    1. The brand and model of your bike.

    2. Your driving record.

    3. NCB Eligibility.

    4. Type of insurance plan you choose.