Most of us buy bikes to be able to commute independently, saving our money and time on public transport. However, towards the end of the purchase of the bike, its accessories, and insurance, we feel like we’ve spent more than we would’ve liked. This could be because of our ignorance when it comes to choosing the right insurance policy. In a haste, we either end up with an overinsured or underinsured bike. Here are some tips to help you reduce the insurance premium cost of your old bike.
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1. Get a Long-term Policy:
Generally, when it comes to two-wheeler insurance, the one-year policy is our go-to option. But, did you know that the premiums for the long-term plans are significantly lower when compared to one-year plans? But, due to our ignorance about long-term plans which extend up to 3 or 5 years, we rarely consider them. This is why the Insurance Regulatory and Development Authority has now directed the insurance providers to offer long-term two-wheeler insurance policies. However, you should opt for the long-term only if you have a new bike or plan to use your old one for the next 3 or 5 years.
2. Renew Your Policy On-Time:
Apart from the obvious benefit of enjoying the uninterrupted protection that insurance offers, renewing your policy on time save you some money too. Ending up with a lapsed or expired policy can result in getting your vehicle inspected after the grace period, which will lead to higher premiums. This is why it is recommended that you pay your dues on time to avoid such hassles and retain your additional and accumulated discounts. Make use of the reminder from your insurer and pay it in advance.
3. Be A Part of the Riders Association:
If you are a bike enthusiast, entertain being in a rider’s association. Not only will you get to be around great minds that think alike, but also get a discount on your premiums. Yes, you heard it right! As per the IRDAI’s regulations, policyholders who are a part of such organizations are offered a discount, after assessing their driving track record.
4. Choose A Higher Voluntary Deductible:
All insurance policies have the compulsory deductible component, which is the amount you have to pay when you make a claim. Though the deductible is fixed by the insurer, you can choose to opt for a voluntary deductible. With a voluntary deductible, you can choose to pay an additional amount along with the compulsory deductible which can reduce the overall cost of your premium. But, make sure you choose the amount that you can afford, rather than going all out to save some money on the premiums.
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5. Don’t Make Small Claims:
Generally, when we have insurance in place, we’re tempted to use it often to repair even the smallest of dents. Though the purpose of insurance policies is to come in handy in such situations, using them for such small claims can result in you losing out on your No-Claim Bonus (NCB). The NCB is a discount offered on the next premium to policyholders who have not made any claims during their policy year. They also play a key role in reducing the overall premiums of your two-wheeler insurance. So, instead of making claims for small repairs, pay it out of your pocket.
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