You can actually save money when you buy two-wheeler insurance. No, it does not mean that you have to go in for a policy with minimal benefits. Rather, there are a few things that help you save on the premium. Remember, bike insurance is a necessity as it protects you from financial losses. Also, the law mandates that you have to have third-party cover if you own and ride a two-wheeler. So, there is no escaping from it.
Here are five smart ways that go a long way in helping you save on premium that you pay on your vehicle insurance:
1. Opt for Long-Term Bike Insurance
Traditionally, insurance providers offer one-year coverage. However, this has resulted in significant non-renewal. That is why the IRDA, the insurance regulator in India, now allows bike insurance providers to offer long-term insurance. Instead, of one year, the term of your policy will be for three years. The IRDA annually hikes the rate of third-party coverage while insurance companies increase rates for own damage insurance periodically. So, if you take a long-term policy, you will be insulated from rate hike during that period.
2. Buy Your Insurance Online
Nowadays, it is possible to buy two-wheeler insurance online. With no middleman in the picture, insurance providers save money on commissions. They pass on the savings to their customers in the form of lower premiums. Before you buy two-wheeler insurance online, make sure you compare two-wheeler insurance policies side by side. Give focus on the features and benefits offered by the two wheeler insurance policy you want to buy. Comparison allows you to select a policy with the maximum benefits without paying a bomb for it.
3. Make Use of Your No Claim Bonus
This bonus is issues when you don’t make claims for a policy year. You get 20 per cent for the first claim-free year and then it keeps increasing. If you manage to get through five years without making a claim, you will get 50 per cent of bonus. You can use the No Claim Bonus to reduce your premium when renewing your policy. Over the years, it can be a significant amount. That is why for minor repairs and problems, it is prudent not to file a claim and let the bonus accrue.
4. Check Add-ons
If you have opted for add-ons, it is time to revisit them. Many times, you may end up taking a rider that you don’t really need. Add-ons can increase your premium rate, and that is why you should opt only for those riders that you genuinely need. The best time to check the add-ons is at the time of renewal. You can get rid of anything that is superfluous so that your base premium does not increase too much.
5. Install Security Devices
As a responsible two-wheeler owner, you have to demonstrate to the insurance company that you are taking measures to keep your bike safe from theft and damage. So, it is best to spend a little money to install security devices so that your insurers don’t have to worry about liability for damage. This will help you get a discount on your premium, thereby saving you money.
These are some smart tips which will guide you to the right process to buy two wheeler policy. Just remember to compare two-wheeler insurance policies before you finalize the best one.