Having bike insurance is crucial as it allows bike owners to protect their two-wheeler against unexpected events. In India, two types of bicycle insurance policies are usually chosen: liability insurance and comprehensive bicycle insurance. Among these services, comprehensive bicycle insurance provides coverage not only for civil liability but also for personal injury and theft.
Opting for comprehensive bike insurance coverage is ideal because of the comprehensive coverage it provides. Although the cost can be high, bike insurance should be considered an investment. Without compromising coverage, there are effective ways to reduce premiums. It also helps to understand bicycle insurance and the factors that affect the insurance premium.
Factors that affect bike insurance premium
Below are the factors that affect the two-wheeler insurance premium in India:
Bike model and make
The make and model of the bicycle contribute significantly to the premium calculation. Higher-end bikes with more expensive parts and higher repair costs will have higher premiums. Engine capacity is another determining factor. Bikes with larger engines generally have higher insurance premiums due to their power and higher risk.
Age and driving experience
The age and driving experience of the insured are also taken into account. Younger passengers are typically charged higher premiums, especially those under 25, as they are perceived as more prone to accidents.
Claim history
The claims history of the policyholder is another vital factor. A clean claims history demonstrates responsible driving, resulting in lower premiums. Conversely, a history of accidents or frequent claims may result in a higher premium.
Geographical location
Geographic location also plays a role, as insurance premiums are higher in areas prone to theft, accidents or natural disasters. Urban areas with heavy traffic and high crime rates typically have higher premiums compared to rural areas.
Add-ons and coverage options
Additionally, the add-ons and coverage options selected by the insured affect the premium. Popular add-ons include non-consumption coverage, roadside assistance, personal accident coverage and medical expenses coverage. The more add-ons you select, 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 rating and reputation of the insurance company also affect the amount of the premium.
Tips to Save Money on Two Wheeler Bike Insurance in India
Having a comprehensive bike insurance policy in India is essential for protecting your bike and finances. Below are valuable tips to save money on two-wheeler insurance in India.
Choose your bike sensibly
As mentioned above, the bike premium depends on the model and type of bike. Since high-end bikes will have a higher premium, one should choose a bike that is affordable, has good features, and has a decent premium. If you are interested in purchasing a high-end luxury bike, be prepared to pay more money for your bike insurance premium.
Choose add-ons wisely
Comprehensive bike insurance policies come with optional add-ons that improve coverage but also increase the cost of the premium. Evaluate your needs and select the add-ons that are necessary and relevant to your situation. For example, if you are driving in a flood-prone area, it may be beneficial to opt for additional engine protection. Avoid unnecessary add-ons that you won't use, as they will only increase your premium.
Maintain a good driving record
Your driving history plays a vital role in determining your bike insurance premium. Insurance companies typically offer lower premiums to people with a clean driving record because they are considered less risky. Avoid traffic violations, accidents, and speeding tickets to maintain a good driving record. This will help you negotiate lower premium rates during policy renewal.
Accumulate No Claim Bonus (NCB)
No Claim Bonus is a reward in the form of a discount given to the policyholder who does not make any claim during the policy period. National Commercial Bank can significantly reduce the cost of your insurance premiums when you renew your insurance policy. Make sure you grow your domestic bank balance without making small claims and enjoy the benefits of lower premiums in later years.
Install safety and anti-theft devices
Insurance companies appreciate the safety 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 premiums as insurance providers consider your bike less likely to be stolen or damaged.
Opt for voluntary deductibles
Policyholders can select predetermined amounts known as a voluntary deductible, that is, the amount they pay out of pocket when settling a claim. You can reduce the cost of your insurance premium by choosing a higher voluntary deductible. However, be sure to have the deductible you choose on hand in case of a claim. Saving the premium to pay more at the time of the accident is not the most logical thing to do.
Opt for a long-term policy
The chances of getting a higher premium discount are higher when you opt for a longer term policy. The standard bike insurance policy is for one year but many insurance companies give the option to continue for longer. This not only saves the policyholder money 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 them could be a loyalty discount or a discount for paying the year's premium in one lump sum. Most of the time, the monthly payment is more expensive than the annual payment.
Attend safe riding courses
Insurance companies often offer discounts to the insured who have done safe riding courses. These courses teach bike riders defensive riding tactics and, since this reduces the likelihood of accidents, the insurance company considers them low risk and therefore offers discounts.
Saving money on bike insurance in India is possible through careful consideration and understanding of your insurance requirements. Remember to review your policy periodically to ensure you are getting the best deal that suits your needs and budget.
Disclaimer: The above content is non-editorial and TIL hereby disclaims any and all warranties, express or implied, related thereto, and does not necessarily warrant, represent or endorse any of the content.
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