Is it that time of the year when you have to renew your two-wheeler insurance policy? If the answer is yes, you might be wondering if the insurance company is going to hike the premium of your two-wheeler insurance this year. Insurance companies look into a number of factors while deciding the premium you have to pay towards your policy. However, there are a number of ways by which you can cut down on the cost of your two-wheeler insurance policy.
Here are a few tips that will help you pick an affordable insurance plan and help you save on renewal premiums too:
1. Buy the policy online
With the advent of technology, you can now carry out a number of ardent tasks with the click of a button or the swipe of a finger. You can even purchase your two-wheeler insurance plan online. Insurance companies generally offer discounts on online policies as the companies themselves save money on paperwork and other processing costs. So, buying a two-wheeler insurance policy online is a good idea to save on your premiums.
2. Pick the right type of coverage
There are two types of two-wheeler insurance plans available – third-party liability and comprehensive insurance. If you have just purchased a bike or if you own a super bike, it is wise to get a comprehensive insurance policy that offers wide coverage. However, if you need to cover your old bike and you are an experienced rider, you can consider buying third-party liability insurance that offers coverage only to the loss incurred on third-party liability. Third-party liability insurance will cut down the insurance cost significantly.
3. Get only the necessary riders
At the time of purchase or renewal of your policy, you will be presented with a number of riders that will enhance the insurance coverage. Make sure you choose only the most necessary riders because you have to pay an additional premium for each rider.
4.Install an anti-theft device
An anti-theft device will prevent theft of your bike. Insurance companies offer a lower premium for bikes that have this device installed. So, consider getting an anti-theft device, which has the dual benefit of preventing burglary and reducing your two-wheeler insurance premium.
5. Choose the same insurance company
If you have already purchased a car insurance policy or a health insurance policy, get your two-wheeler insurance policy from the same insurance company as the insurer may offer loyalty discounts. Get in touch with your insurance agent to find out if you will get a discount on your two-wheeler insurance premium.
Insurance companies offer various discounts to prospective policyholders. Ask your insurance company for the best deal. At the time of renewal of your policy, make sure you reap the benefit of the no claim bonus.
7. Opt for a voluntary deductible
A voluntary deductible is an amount paid by the policyholder as a contribution to the claim. Since a voluntary deductible will reduce the cost incurred by the insurance company on making a claim, individuals who choose to pay a deductible will be offered a lower premium. Therefore, pick a policy that has the deductible feature.
8.Renew your policy in time
It is important to renew your policy in time because non-renewal will lead to the lapse of the policy. To revive the policy, your bike may be inspected by the insurance company plus you may lose out on your no claim bonus too. So, renew your two-wheeler insurance policy in time to avoid paying fines or applying for a fresh policy.
9. Avoid making modifications to your bike
If you make expensive modifications to your bike, you will have to get extra coverage to insure the newly fixed parts. This cover again will cost you extra. So, avoid getting unnecessary modifications so that you do not have to shell out more towards your insurance policy.
10. Compare different insurance plans
When it is time to renew your policy, read up about the different plans available in the market. If you find a plan that offers the same features as your existing policy for a lower premium, you can switch to that plan.
Use the tips mentioned above when you purchase or renew your bike insurance policy next time. Read the terms and conditions carefully before you pay the premium.
Financial Analyst at Farmer’s Insurance with over 25 years of experience in the Financial Industry