Two Wheeler Insurance

Tips to cut down your Bike Insurance Premium

A wise person had once said, “You can’t buy happiness but you can buy a bike and that’s pretty close”! Bike owners (or lovers) would totally agree with that. In fact, many marital fights have been…

A wise person had once said, “You can’t buy happiness but you can buy a bike and that’s pretty close”! Bike owners (or lovers) would totally agree with that. In fact, many marital fights have been fought when the bike receives more attention than the spouse. But on a serious note, buying a bike is the easy step. Protecting it from damage and ensuring its safety is the more important step.

With so many insurance providers in the market, it is quite a task to choose the best one. Both in terms of quality as well as cost. Read on to know the tips to cut down your bike insurance without compromising on safety and service quality.

Tips for Saving Money on Your Bike Insurance

Choose the Right Bike: Choosing the right kind of bike is as important as choosing the right kind of insurance. A bike with standard features or with a less powerful engine calls for a lower insurance premium. Similarly, an older model bike can also help to bring down the premium. Exotic models or expensive bikes usually involve higher repair and maintenance costs. Hence, insurers charge a hefty premium for those.

Compare: The next important decision after deciding the bike model is the insurance provider. While usually it is said that comparison is the thief of joy, it is not true in case of a bike insurance. In fact, it is the harbinger of joy in this case. One can either go to online portals which help compare the quotes, features and other details of various insurance providers or go to the websites of individual insurers and understand their offerings. A couple of things to consider while choosing your insurer:

  • Don’t blindly go for the lowest premium. Read the inclusions, coverage, network and claim procedure in detail.
  • Check on the incurred claim ratio of insurance providers to understand their settlement procedures as well as past track record.
  • Choose only what you need. Many providers add special frills which makes the premium higher. Analyze carefully if you really need those add-on facilities.
  • Sometimes it is best to choose a lower level of insurance cover. For instance, if one has a second-hand or old bike, he or she might just want to go for a basic third-party insurance or a policy that covers theft, etc. Analyze your circumstances carefully.

Go for a long-term insurance: Unlike the insurance policies for four-wheelers, bike insurance is available for longer durations as well. One has an option to select a policy for two or three years. Considering that there would be no renewal costs in such cases for the insurance provider, they offer discounts to customers for long-term policies. Also, in longer tenure policies, the policy holder is able to avoid the usual hike in annual policies. As a result, the overall premium tends to be lower for long term insurance policies and this way you can cut down your bike insurance premium.

Secure your bike: Customers who take additional measures to protect their assets are a delight for insurance companies for obvious reasons. The possibility of insurance companies having to make payment to such customers is lesser. As a result, security and insurance premium are inversely related. So, more secure is your bike, lower is your insurance premium. One should protect the bike from theft, vandalism or other such damage by putting in place good-quality safety equipments.

No Claims: Insurers reward customers who have zero claims during the term of policy. They offer significant discounts on the premium amounts in such scenarios. So, in case of minor claims or small damages, it is better to bear the cost instead of making insurance claim. Try to restrict the insurance policy for big expenses or major claims as that helps in keeping the premium low.

Bundle it up: We always bargain with shopkeepers asking for discounts when we buy in bulk. The same is also applicable for insurance policies. In fact, insurers prefer customers who buy a bundle of policies from them as compared to single policies. For instance, if you already have a health insurance policy with a particular insurer, you are likely to get a discounted bike insurance policy. Always go for the package deal!

Once you know the tips to cut down your bike insurance, it is a much easier job to choose the best bike insurance policy. So, safeguard your dearest bike with the right policy and enjoy the ride!

Last updated on