When you purchase a new two-wheeler, the dealers provide you with a mandatory insurance cover. This form of protection usually has a tenure of one year, after which you’re left with an unprotected two-wheeler.
This is the case with most Indian drivers. While they have their two-wheelers ensured by the mandatory cover, most people do not possess any additional insurance that can help mitigate financial losses which could crop up once the initial policy expires.
It’s an added expense, and a vehicle costing approximately INR 50,000 could have an annual premium anywhere between INR 1,000 and INR 1,200. But remember, your insurance premium starts decreasing over the years. So the longer the bike stays in your possession, the lower your premium gets.
Here are a few more tips that you can use to reduce the financial expenses incurred on your two-wheeler insurance policy.
1. Opt for Comprehensive Coverage
Currently, you can choose between two types of two-wheeler insurance.
● Third Party
A third-party insurance cover protects you from losses resulting from accidents caused to a third party. So, if you happen to damage someone’s car or property, or injure someone on the road while riding your vehicle, a part of the expenses that you incur on repairs or hospital bills will be taken care of by your insurer.
● Comprehensive Coverage
The comprehensive policy includes the third-party coverage, and along with that, covers any damages suffered by your vehicle.
The easiest way to reduce your overall costs would be to take comprehensive coverage. That way, you won’t blow a hole in your finances in the event that your bike or motorcycle gets damaged. It may be a bit more expensive, but you’ll feel a lot safer riding when you’ve got one of these schemes under your belt.
2. Buy Long-Term
IRDA has given approval for a long-term two-wheeler insurance policy of up to 3 years. Most insurers have started offering policies under this scheme.
The entire premium for all three years needs to be paid in one installment. While it’s a lump sum expense to bear, consider the amount of money you might save.
In this case, you’ll be done paying your premiums at the beginning of the policy tenure, and that means you won’t have to deal with revised rates.
Thanks to this, you can avoid any spikes in your premium cost that could result from inflation.
This also helps insurers to cut down on administrative costs, leaving you with a policy that’s a lot less expensive.
Add to this the fact that so many insurers are now providing online services; the whole process becomes a hassle-free experience.
For example, some insurance firms even give you the option of applying for your two-wheeler insurance policy online.
3. Pick the Right Vehicle
Wait to buy a two-wheeler before you check out the insurance policies. Policy prices and premiums vary on the basis of the type of vehicle that you purchase.
Insurers determine the prices based on factors like the cost of the vehicle and the likelihood of it getting stolen. Also, policies for a 150cc bike will differ from those of a 350cc vehicle.
So, before you pick up a vehicle, find out the cost of insuring it and determine whether you’ll be able to afford it. Inspecting a policy beforehand will also let you plan out a more comprehensive budget, leading to better long-term financial management.
4. Service Your Bike Regularly
If you want to save on insurance costs, you can do so by servicing your bike regularly. Insurers inspect your vehicle and run through the various documents related to it before setting a premium.
If they find that you’ve kept your vehicle in tip-top condition, you’re more likely to granted a lower premium.
Insurers need to mitigate the risks that they’re exposed to while granting you a policy. They would rather insure someone with a well-maintained vehicle, as that reduces the chances of the vehicle falling into disrepair, which would increase their liability.
5. Approach Your Current Insurer
Instead of looking for an insurance company that provides you with an attractive policy, try approaching your current insurance company. If you’re covered by other policies like health, life, or home insurance, your insurer is sure to provide you with great offers when it comes to your two-wheeler policy.
That’s right, by being a loyal customer and availing a policy from your current insurer; you can reduce your financial burden.
6. Avoid Accidents
It goes without saying that you should stay as safe as possible on the roads. But did you know that by being safe, you could reduce the premium that you pay?
If you’ve made very few claims on your policy, chances are, your insurer will reduce the amount you pay as premium.
Lower claims tell an insurance company that you’re careful while riding, making you prone to fewer accidents. This reduces their financial risk in granting you a policy.
These are a few of the tips you can follow to reduce your expenses on a two-wheeler insurance policy. If you’re planning on purchasing certain bikes, like a Bullet or a KTM Duke, try getting a membership in a biker’s club. Most of the members will be covered by two-wheeler insurance, and if you take a policy from the same insurer, you’ll most likely get to pay lower premiums.
So be on the lookout for opportunities like this, and research the schemes offered by various insurers so that you can select the one that’s right for you.