Tips To Reduce The Premium On Your Two-Wheeler Insurance

1. Type Of Two Wheeler: The premium amount of your insurance policy depends on the type of your vehicle to a large extent. The make and model of the vehicle, the city where the vehicle is registered, and the accessories installed are all taken into account while determining the premium amount. The Cubic Capacity (CC) of your vehicle also affects your premium amount. The premium for premium sports bikes with higher power are charged high on premium than the commuter motorcycles.
2. Add-On Covers Opted: You may opt for different add-on covers to enhance the scope of your policy. Some examples are zero-depreciation cover, co-passenger accident cover, cover for accessories and more. These add-on covers can be opted for a certain extra amount of premium and hence increases the cost of insurance.
3. No Claim Bonus: No Claim Bonus in simple words is a reward that insurance companies offer policyholders for not making any claims on their policy during the preceding year. It is a kind of incentive for adopting safe riding practices. A No Claim Bonus reduces your insurance premium by up to 50% based on the number of claim-free years.
4. Voluntary Excess: In case of a damage or loss caused to the vehicle due to any unfortunate event, there is a certain percentage of claim that the policyholder has to pay from their own pocket. If the policyholder chooses to increase their contribution voluntarily, their premium cost will come down.
5. Other Discounts: Due to the increased competition in the insurance sector, the insurance companies these days are offering various kinds of discounts. For instance, you may avail discounts and benefits on buying a long-term insurance policy for a period up to 3 years.

Tips to Reduce Premium Cost on your Two-Wheeler Insurance

1. Selection Of Bike: The basic factor influencing is the kind of two-wheeler your purchase. The premium cost for superbikes and sports bikes is usually higher than that of the normal commuter motor vehicles. Higher the engine displacement and power, higher will be the premium cost. This is primarily because the expensive sports bikes need greater maintenance as compared to a normal commuter bike. So choose your vehicle wisely depending on your requirement.
2. Opt For A Basic Third-Party Insurance: As per the Indian Motor Vehicles Act of 1988, basic third party insurance is legally enforceable and is a must. This is the cheapest form of insurance and covers any financial liabilities arising out of loss or damage caused to a third party or their properties while riding your vehicle. It also covers the owner of the vehicle. Though the premium on this insurance policy is low, it offers limited protection against unfortunate events.
3. Go For A Multi-Year Insurance Policy: If you go for a long-term policy for a period of up to 3 years instead of an annual insurance policy, you may avail a certain percentage of discount and get rid of the hassles of yearly policy renewals. This way you can reduce the premium cost on your insurance.
4. Avoid Making Petty Claims: A dent or scratch should be ignored and taken care by the owner of the vehicle. Making claims for such petty damages will restrict policyholders from availing 'No Claim Bonus (NCB)' which is awarded to the insured for having made no claims on their policy in the preceding years. An NCB can essentially reduce the premium cost of your insurance up to 50% depending on the number of claim free years.
5. Compare And Buy: The best way to buy a two-wheeler insurance is to compare the available alternatives online and then make a purchase. There are various neutral insurance portals where you can go and compare motor insurance policies based on the coverage, benefits and premium.
6. Install An Anti-Theft Device To Your Two-Wheeler: The other way to reduce the premium on your two-wheeler is to install an anti-theft device to your vehicle which will minimise the risk of theft. Consequently, you can avail a concession on your two-wheeler insurance cost.
7. Selection Of Add-Ons: Every add-on cover you choose adds to the cost of premium. Therefore, it is important to choose only those additional covers which you really need and avoid the unnecessary ones.
8. Get Membership Of A Recognised Motor Riding Organisation: Some insurance companies offer special concessions and discounts if you are a member of a recognised automobile, touring or riding association.
9. Choose A Higher Deductible: In case of damage or loss caused to the vehicle, the insurance company does not provide for the entire expenses on the repairs and retrieval of the vehicle. There is a certain percentage of the expenses that has to be borne by the policyholder. This amount is known as deductible. If a policyholder voluntarily chooses to increase their deductible, they will need to pay lower premium on their insurance.
10. A Word Of Advice: Though you might want to save on the premium cost of insurance, it is advisable not to compromise on the coverage that the policy offers. Therefore, do not let premium be the only determinant factor while buying an insurance policy.