How to Get the Best Premium for Your Bike Insurance

Having bike insurance is important because it can help you financially if you ever get into an accident. However, many people overlook it due to the cost of the premium for bike insurance. The premium is the money you pay to the insurance company in exchange for coverage.

The cost of bike insurance premiums depends on factors like coverage options, additional features, vehicle age, and more. While the premium is important, it shouldn’t be the deciding one. Moreover, there are ways to save money on your premiums easily. Curious how?

This read will cover the five factors that impact the premium for bike insurance and provide tips on how to reduce them. Let’s dive in!

5 Key Components That Determine the Premium for Bike Insurance

Below are the five key components that determine the premium for bike insurance they are:

1. Third-Party Coverage

The best 2-wheeler insurance in India provides such coverage. It pays for any losses or harm the insured motorbike causes to a third party. The degree of the damage determines how much compensation is provided for physical harm.

Here’s a table of the standard premium rates the Insurance Regulatory and Development Authority of India (IRDA) decided. These are the prices for a single-year premium based on the bike’s engine.

Making a five-year single premium brings down the premium costs to:

2. Add-Ons

Add-ons are optional extras for bike insurance that increase coverage. They include personal accident protection, a mandatory benefit that covers up to ₹15 lakhs at a small cost. They also include return-to-invoice coverage and zero depreciation, ensuring you will receive your whole investment back in the case of theft, total loss, or claim settlements.

The roadside assistance coverage is quite helpful when anything fails. They give better coverage and greater flexibility when the price of premium for bike insurance goes up.

3. Vehicle Age

The bike insurance cost is mostly determined by the age of the bike. As the bike ages, depreciation lowers its market value. This drop in market value results in a fall in the insured declared value (IDV), the maximum amount that may be claimed from the insurer.

Because of this, a new bike with a lower IDV will have a cheaper bike insurance rate than one with a higher IDV. In other words, the premium for bike insurance decreases while the rate for older bikes increases.

4. Policy Status

The insurance company may raise your rate if it agrees to renew your bike insurance but finds out that you have neglected to pay the renewal or premium on time.

Additionally, they could charge you a greater amount if they discover any damage when inspecting your bike for an insurance renewal premium for bike insurance to cover the cost of these damages.

5. Insurer’s Discretion

This refers to the insurance company’s authority to determine, depending on their evaluation, the conditions of your bike insurance coverage. To assess the level of risk you represent as a policyholder, the insurance firms carefully examine your riding record. They determine the premium for bike insurance based on this evaluation.

How to Reduce Premiums for Bike Insurance?

You can save money on two-wheeler insurance premiums by following these tips:

1. Evaluating Various Policies Based on Requirements

Comparing several insurance plans is crucial before purchasing one. Every policy has its own set of advantages and disadvantages. Finding the ideal policy will thus depend on your wants for coverage, your financial situation, and the coverage each offers.

2. Opting for Longer Duration Plans with Stable Premiums

Longer-term plans can qualify for discounts from insurance carriers. This gives the insurer more financial stability and lowers its administrative expenses associated with longer-term coverage.

A long-term policy also shields you against yearly premium increases anticipated in the insurance sector because of rising risk and inflation.

3. Limiting the Number of Additional Covers

Extra covers, though, grant you a higher rate for your premium for bike insurance. Restricting the extra covers can help in keeping your premium costs low.

4. Avoiding Small Claims to Retain No-Claim Bonus

You may receive a no-claim bonus (NCB) if you do not claim any benefits within the policy period. This may probably give you a premium for bike insurance that is much less for next year.

5. Keep the Driving Record Clean

A clean driving record with no history of accidents can attract lower premium amounts.

6. Pay Higher Deductibles From Out-of-the-Pocket

When out-of-the-pocket deductibles are high, it brings down the insurance amounts you might claim. This can lower the premiums, as the insurer will know that the amount he has to pay upon collisions will also be less.

7. Install Anti-Theft Devices on Your Bike

Anti-theft devices, as the name gives out, reduce the chances of your bike being stolen. This reduces the risks associated with your bike, reducing insurance premiums.

Factors That Can Affect Bike Insurance Premiums During Renewal

Several factors can impact the insurance premiums. For instance, renewing from the same insurer gives you the benefit of loyalty discounts. If you have been renewing your bike insurance from the same insurer for several years, you can ask for a discount on the premiums.

Similarly, renewing your policy on time is also helpful. The NCB bonus is available only for 90 days after a policy has expired. This means you can use it only if you renew your policy within these 90 days.

Key Takeaways

Before buying bike insurance, you must compare the offerings of the various insurance companies and limit the coverage to the extent necessary for you. This will help you save money on the premium for bike insurance.

In addition, buying insurance online can reduce premium prices. There is no middleman, so the buyer and seller save the agent fee. So, don’t wait! If you want bike insurance, buy the right one today through the PhonePe app.