How to Reduce Your Bike Insurance Premium Without Compromising Coverage?

A Quick Look at Bike Insurance in India

India tops the global charts when it comes to the maximum number of two-wheelers in a country. This over-crowding often leads to congestion, confusion and accidents! Did you know around 4,61,312 two-wheeler accidents were reported in the year 2022? Bike insurance protects you from the financial burden of repairing or fixing damages due to fire, theft, or accident and protects you from liabilities out of damages done to a third party. Now, there is a wide array of coverage and features offered by insurance providers. Bike insurance in India can be broadly categorised into:

1. Standalone Own-Damage Bike Insurance: An own-damage bike insurance plan is designed to take care of damages incurred on your vehicle only.
2. Third-Party Liability Insurance: Third-party liability insurance, as the name suggests, is an insurance plan that protects you from the financial burden associated with third-party liability damages. Purchasing third party liability bike insurance is mandatory in India under the Motor Vehicle Act, 1988.
3. Comprehensive Bike Insurance: Comprehensive bike insurance brings together both third-party liability cover and damage cover. Not just this, you can also choose from a wide range of add-ons to expand the coverage as per your needs.

Reducing Bike Insurance Premium: Tips and Tricks You Must Know

Riding a bike in India mandates you to purchase two-wheeler insurance, and while the premium rates might seem daunting, here’s a list of 8 tips and tricks that can help you save money while enjoying maximum coverage:

1. Adjust the Deductible Smartly
   A deductible is the cost that you are supposed to pay out-of-pocket in case you raise a claim. While this sounds confusing at first, imagine saving all the costs on excessive premiums for lower deductibles when you are riding on safer roads and not raising claims. This is where choosing deductibles smartly can help you save money on the premium.
   Quick Insight: Typically, insurance plans have two types of deductibles: Compulsory Deductibles and Voluntary Deductibles. If you have always been a careful rider who doesn’t make claims often, you can choose a higher voluntary deductible and reduce your premium.
2. Choose Coverage Wisely
   Remember that bike insurance plans these days come with a wide number of coverages and add-ons that might sound appealing but may not be a requirement for your bike’s insurance needs. For instance, let’s say your bike is 5 years old and has lost much of its resale value. In such a case, even a limited coverage with no add-ons can do justice.
   Remember that third-party insurance coverage is mandatory, so you can not skip this coverage. Jio Insurance Broking offers the best possible options.
3. Review and Update the Policy Regularly
   As your needs change every year, the insurance needs for your bike also change. Renewing plans without reviewing them every year is not a smart choice. Make sure to review your plan regularly and adjust the coverage according to changing needs, as this can save you from paying extra premiums unnecessarily.
   Quick Insight: Adding or dropping an add-on is possible only when you are renewing your policy.
4. Compare Policies Before Deciding
   Every insurance company comes with a wide set of coverages: base coverage and add-ons. This is where Jio Insurance Broking helps you easily compare bike insurance policies under the same platform to find the one that best suits your requirements and comes within your budget.
   Quick Insight: Spend some time on the Jio Insurance Broking portal to find the right bike insurance plans. You may be able to bag deals and discounts.
5. A No-Claim Bonus Deserves Attention
   Remember that your insurance provider rewards you for careful driving. This simply means that if you do not raise a claim in a policy year, your claims are carried over to the next policy year, thus saving you from additional premium costs. You can get up to a 50% discount on your upcoming premium.
   Quick Insight: You can install authorised Automotive Research Association of India anti-theft devices like immobilisers, GPS trackers or alarms for enhanced safety of your bike. This can not only keep your bike safe but also come with discounts.
6. Renew on Time
   Renewing your policy on time not only ensures break-free coverage but also helps you save the hassle of renewing after the due date expires. Another important aspect is that not renewing the policy within 90 days will terminate the acquired NCB.
   Quick Insight: Opt for the NCB Protect add-on and get a few claims in a policy year without affecting the bonus.
7. Avoid Small Claims
   Whether it is to enjoy a No-Claim Bonus or lower your premiums with smartly chosen coverage, it is advisable to avoid small claims. A simple rule is not to raise claims when the amount is lower than the premium you are paying.
8. Choose a Multi-year Policy
   Opting for a multi-year policy is a smart choice when you want to lower the premium. The premium you pay for a one-year plan is mostly higher than the premium you have to pay for a long-term insurance plan. Additionally, you can find plans that come with fixed premium rates to create a shield against rising premium rates due to inflation.
9. Drive Safe
   Driving safely is your duty as a responsible citizen. You can also use it to lower your premiums. Remember that insurance providers are most likely to quote cost-effective premiums to drivers with a clean driving history.
   Pro Tip: Make sure to stay within the speed limits, follow traffic rules and always wear safety gear. Also, make sure your documentation is complete.

Over to You

As the premium rates for bike insurance are expected to rise every year, you can combine smart choices and analytical decisions in choosing an insurance plan to lower your bike insurance premium this year. Remember that a combination of higher deductibles, lowered claims and wisely chosen coverage can save you a significant amount on premium payments. All you need to do is compare different plans on the Jio Insurance Broking portal to find the one that best suits your needs and your budget.