How to Save Money While Purchasing Bike Insurance?
Two-wheelers are the most popular type of transport on the Indian roads. When buying a two-wheeler, we usually consider numerous factors such as design, mileage, and price, etc. But, we often forget about insurance that we need to buy along with it. Having motor insurance is mandatory for every motor vehicle plying on the road. So, along with considering the features of the bike, it is also important to consider buying two-wheeler insurance.
A standard bike insurance policy is valid for one year from the time of activation. However, there are multi-year 2 wheeler insurance policies available as well, which offer cover up to 3 years. Besides, being mandatory, bike insurance is necessary as two-wheeler riders are also exposed to high risks of accidental injuries and fatalities. Owing to rapid progression in technology, it's a lot easier now to buy and renew bike insurance online and through offline channels.
So, if you are looking to purchase a new bike or renew your 2 wheeler insurance, read on to know about simple ways to save on the premiums.
Factors that Affect 2 Wheeler Insurance Premiums
Any insurance policy that you buy comes at a cost, and this cost is called the premium. In simple words, premium is the amount that you pay to your insurer to avail of policy coverage and benefits. Premium is a complex calculation that is determined by your insurer after taking into consideration a number of factors. Therefore, it is necessary to be aware of the factors that affect insurance premiums as this will help you understand how to lower your premiums.
The factors that determine the premiums of your bike insurance are as follows: -
1. Driving history - A bike rider with previous records of violations or accidents is considered to be at higher risk
2. Location - Urban areas are known to have more claims than rural areas
3. Age of driver - Certain age groups have more claims
4. Previous insurance policies - In case there have been records for non-payment of premium cubic capacity of the bike
5. Vehicle use - Higher annual mileage results in higher risk exposure
6. Make, model and variant of your vehicle - Sports bikes have higher premiums
How to save on 2 wheeler insurance premiums?
Here are some simple ways to save on two-wheeler insurance premiums: -
1. Have a Clean Driving Record
One of the simplest ways to keep your bike insurance premium low is to have a good driving record. Ensure to drive carefully and obey the traffic rules, and you will have a clean driving record. If you have a constantly accident-free, penalty-free and conviction-free track record, you will be offered better rates on insurance premium at the time of buying as well as renewal.
2. Buy Insurance Policies From One Insurer
Buying all types of insurance policies from one insurer can help you get a good rate on insurance premiums. You can group all of your insurance policies- motor, home, health, etc. at one insurance company, and enjoy getting a good discount on your total premium.
3. Choose Higher Deductibles
You can cut down your bike insurance premium considerably by increasing the amount you pay as deductible. A deductible is an amount that has to be paid by an insured in the event of a claim. So, decide on the amount that you can afford to spend out of pocket and choose the deductible accordingly.
4. Improve Your Credit Score
Did you know that insurers look at your credit score when they decide your motor insurance premiums? The logic behind this is that those who are less likely to cause accidents are considered to more careful drivers. And people who have high credit scores tend to be more careful with their money, so they are considered to be careful drivers.
5. Shop Around
When buying insurance, it is always good to shop around. Take your time and compare the bike insurance policies online offered. Premiums can vary from insurer to insurer, so it pays to shop around. Also, get instant insurance quotes and compare them to make the right choice. Always remember that cheap doesn’t mean good. You need to select the insurance company on the basis of coverage offered.
Consider the above points to lower two-wheeler insurance premiums that you pay. Also, consider buying bike insurance online from Iffco Tokio to make a better and more informed decision.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**