How to Reduce the Cost of Two-Wheeler Insurance Premium during Renewal?
While buying a bike would have been a dream come true for you, there are still many distinctions to keeping a bike safe and sound. A primary and foolproof way is getting a two-wheeler insurance. But more often than not, the need for renewing the insurance policy might have been a cause of trouble for you.
A two-wheeler insurance is both a necessity in protecting you financially against liabilities that could arise in the event of an accident as well as a mandatory document stipulated by the government. Hence you cannot compromise on this necessity.
But do you dread your two wheeler insurance renewal procedures and think that the premium amount of your bike is unnecessarily eating through your wallet? It could be because you are not aware of the cost-cutting ways you can opt to reduce the premium amount.
Read more : Different Types of Motor Insurance in India
Here are 10 ways you can keep in your mind to reduce the premium amount the next time you renew your policy.
Claim your NCB Bonus –
No Claim Bonus is the bonus amount provided by your insurance company for every year that you haven’t filed a claim with them. The longer you go without filing a claim, the higher your NCB will be. Most companies will allow you to claim this bonus as a discount in the next premium you have to pay. Thus at the time of the renewal, claim your NCB bonus and reduce the premium amount.
Opt for voluntary deductible-
When you opt for a voluntary deductible, it means you agree to bear a part of the insurance amount. If you ever land in an accident, the insurance company will only pay a portion of the IDV. You will have to take from your pocket for the rest of the money. This will reduce the premium amount as the amount the insurance company has to give you also reduces.
Long term policies –
As with every other long-term policy offered in every business sector, getting a long-term policy with Insurance companies too will reduce the total premium amount when compared to renewing it annually. Since insurance is a mandatory policy, getting it for long-term would be a wise decision. You would also not have to remember to renew the policy every year. This will keep your insurance policy from expiring untimely, and you can maintain your NCB streak as well.
Own Damage premium discount –
Check with your insurer, at the time of renewal, if they are providing any own-damage premium discounts. Always keep an eye out for discounts and offers from your insure. You can sign up to their newsletter or create a google alert for such windows of opportunities.
Compare with other companies –
This one goes without saying. Always compare with other insurers the premium and coverage offered by them. With tight competitions in the insurance sectors, companies could be belting out new strategies to lure in customers. Read through the terms and conditions. Call up their customer care number to get more clarity on terms you are unsure about.
Lower the IDV amount –
The premium you have to pay is directly proportional to the IDV amount. The higher the IDV, the higher will be the premium. If you are a confident driver who has an excellent track record in driving, then you can lower the IDV amount and save on the premium.
Third-party policy for seldom-used bikes –
If you have a bike collecting dust in your garage or if you have a bike that you only take out once in a while to run errands nearby, then opt for a third-party insurance policy. The premium for a third-party policy is comparatively lesser than a comprehensive policy. It is fixed by the IRDA and is not subjected to change unless revised by IRDA.
Opt only necessary add-ons –
The lure of buying add-ons to complete the all-round protection for your bike can sometimes be unnecessary. The more add-ons you opt for, the higher your premium climbs. So opt for the ones that you find are absolutely necessary and those that align with the type of driver you are.
Renew policy on time –
If you do not renew your policy on time, it can lapse. You will lose your NCB streak. When you go to buy the policy after a few years or even after a few months, insurance companies can charge you higher than what you were paying before. A break in your insurance policy tenure can lead companies to bump up the charges. You might even be asked to submit the vehicle for inspection.
Anti-theft devices –
If you have anti-theft devices installed in your bike, you can get into the good books of insurance companies and thereby garner a reduction in the premium amount. Anti-theft devices are a testimony of your own responsibility towards your bike.