5 Tips to Save Money on Motorcycle Insurance
Your bike is one of your prized possessions, isn’t it? Besides the ease of conveyance, you use it to flaunt your style too. This is why when it comes to buying a motorcycle, you are very conscious about the brand, the price, the features, the mileage, the speed and even the design and color. But, are you conscious about your bike’s insurance policy?
Well, you should be. Thanks to the Motor Vehicles Act, 1988, it is mandatory to have a valid motorcycle insurance cover on your two-wheeler. Since the cover is legally mandatory, you cannot avoid it. But what if I told you that you can save money on your motorcycle insurance policy?
Yes, there are ways in which you can lower the premium for your bike insurance and save money. Read here to get the information on different ways to save your hard-earned money on motorcycle insurance.
How to save money on motorcycle insurance
- Compare online before buying the policy
When you search for one motorcycle insurance policy, you end up getting confused by many, as there are multiple insurers in the market, each offering a two-wheeler insurance policy. It is better to compare between the available options before deciding on one. To compare, switch to an online insurance broker. Instead looking up for motorcycle insurance, going to an aggregator or online broker makes more sense as all the relevant details about every single plan can be compared on one platform. There is less scope of confusion and misinformed decision making. And given the fact that you are getting to view each insurance plan’s premium and coverage in one place, you can save on money too.
- Use your No Claim Bonus (NCB)
Every insurance company offers No claim bonus for every claim-free year. These discounts range from 20 percent to 50 percent for 5 claim-free years. After 5 years, an insurance company can choose slightly increase the NCB in the subsequent years. When you renew your motorcycle insurance policy, using the NCB allows you to get a discount on the own-damage premium of the motorcycle insurance. Just make sure that you’re making the most of this discount, by preserving it well. Avoid making smaller claims and save on your no claim bonus. Ideally, smaller claims should be met from your own pocket so that you can claim the premium discount next year and also increase the subsequent NCB rate.
- Renew before the expiry of an existing plan
Since a motorcycle insurance policy is mandatory, it should, ideally be renewed every year without a break. If you do not renew and let the policy lapse, the premium charged when you renew it later would be higher. That’s not all, you also the benefits of any no-claim bonus that you may have accumulated in the previous year. Avoid this possibility and renew your motorcycle insurance plan well before its expiry.
- Buy a multi-year plan
A recent development in the motorcycle insurance market has been the launch of plans where the cover continues for 2 or 3 years at a stretch without requiring annual renewals. The premiums also remain the same in the said tenure. These plans are better as they promise a uniform premium for 2 or 3 years and spare you the possibility of higher premiums in annual plans. So the next time you’re going to renew your motorcycle insurance, you can consider the possibility of renewing it for three years in one go. Keep in mind, that this is a fairly new product in the market, so do read the policy document carefully.
- Increase your voluntary deductible
Voluntary deductible is nothing but an amount that you promise to pay at the time of making a repair claim. The insurance company would pay the rest of the amount, post deductible. The higher the deductible, lower would be the premium. Although this feature is available in motorcycle insurance to reduce your premium, a customer should use this wisely. At the time of claim, you might have to pay a hefty amount of a large claim because of the deductible.
Now that you are aware of the tips to save money on your two-wheeler insurance, just relax and take it for a spin! Stay insured, stay safe! Though a motorcycle insurance policy is mandatory, you can save on your insurance plan if you remember these points. So, insure your precious bike and also save money.