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How To Save On Your Bike Insurance Premium
According to the Motor Vehicles Act, 1988, every two-wheeler owner must procure at least a third-party insurance policy. This type of insurance offers protection against any legal liabilities arising out of damage to any third party or property. However, it is a basic insurance coverage and it offers no protection to you or does not cover any damage to your bike.
If you want to protect yourself and your bike, it is recommended you avail of a comprehensive insurance coverage. But, such policies may be more expensive because of greater coverage. This does not mean that you should not purchase a comprehensive policy.
Here are five tips that will help you reduce the premium cost on your bike policy:
1. Utilize the no-claim bonus (NCB)
A two-wheeler insurance policy offers benefits when you do not file any claim. It is known as the no-claim bonus (NCB), which offers a discount on the renewal premium paid at the end of the policy term. The NCB is progressive, which means the discount on the two-wheeler insurance premium reduces for every no-claim year. NCB often starts at 20% and may increase to as much as ...
... 50% if you do not file a claim for five consecutive years.
2. Include only the necessary add-ons
A bike insurance policy offers coverage for additional riders. However, you need to pay a higher premium for availing of this coverage. Therefore, it is recommended you include only those add-ons that are required.
3. Timely renewal
Auto insurance policies are available for one to three years after which you have to renew the policy. It is important that you renew the policy on or before the due date to avoid paying a higher premium. Generally, insurance companies charge a higher premium on lapsed policies.
4. Maintain a good record
It is important that you maintain a clean driving record. When you drive safely and have a good record, it implies lesser accidents and lower claims. No claims mean higher NCB discounts. In addition, the insurance company perceives you as a lower-risk customer. These factors have a positive impact and are beneficial in reducing the two wheeler insurance premium.
5. Compare different products
There are a large number of insurance policies that are currently available. Each of these policies offers excellent benefits and features. It is therefore important that you compare the various products to maximize your benefits. Comparing bike insurance online is recommended to help you make an informed decision.
Experts advise that you do not compromise on an inferior policy to reduce the premium. Adopting the aforementioned tips to reduce the cost of availing an auto insurance policy is a smart thing to do.
Arm yourself with this information today and find the best deal for your motorcycle insurance.
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