Bike insurance is important to protect yourself against any financial damage caused while riding the vehicle. From a road accident to natural disasters like earthquakes and floods, bike insurance can rescue you in several situations. However, while renewing your insurance, you should always aim to minimise the premium with the best deals possible. Hence, in this blog, we will discuss how to save money on bike insurance renewal.Â
Methods for Saving on Bike Insurance Renewal
You can follow the following tips to save money on bike insurance renewal:
- Clean Driving Record
The safety of your driving affects the premium you will pay. If you have incurred any driving-related financial penalties, the insurance company will view you as a liability and increase the premium. On the other hand, a clean driving record ensures that the premium is minimised.
Another reason you should have a clean record is to ensure that you don’t have to make any claims, thus making you eligible for a no-claim bonus.
- Avoid Small Claims
You must not make claims for small issues such as minor repairs or a small scratch. Making a claim makes sense only if you suffer major damage. Not making any claims ensures you are eligible for a no-claim bonus.
Moreover, making claims makes the insurance company view you as a risky client. It will lead to an increase in the renewal premium.
- Opt for a Higher Deductible
The deductible is the amount you pay at the time of making a claim. If your deductible is high, the premium you will have to pay will be lower. Thus, if you can afford a higher deductible, you can do so to reduce the premium.
- Being Smart About Add-Ons
Every add-on is meant to meet a particular requirement. The question you have to ask is: will I face this requirement? For example, if you have to travel long distances regularly, it could be sensible for you to have add-ons like daily cash allowance, personal accident cover, and personal accident cover for the pillion rider.
But if you don’t need these add-ons, it is better to avoid them. Minimising add-ons will reduce the premium you pay for insurance renewal.
- Install Anti-Theft Devices
Anti-theft devices enhance the safety quotient of your bike. It makes it more secure in the eyes of the insurance company. This leads to a reduction in the insurance premium. To avail of the discount, you install equipment approved by the Automotive Research Association of India (ARAI).
- Renew on Time
It is best to renew your bike insurance on time. It showcases your consistency to the insurance company and could lead to a discount on the insurance renewal premium. On the other hand, if there is a gap between your existing policy and the new one, the insurance company could check your bike first before renewing the policy.
- Comparing Insurance Policies
You must compare the insurance policies offered by different companies. After checking the premium amount and coverage offered by different plans, you can take a call regarding which policy offers the best value for money.
- Extend the Policy Tenure
You can renew your insurance for more than a year. The longer the tenure of your insurance, the lower the premium you pay for renewing your bike insurance.
Why Do You Need Bike Insurance?
Here are some reasons why you need bike insurance:
- Legal Necessity
In India, a bike owner must have bike insurance with at least third-party coverage. So you must buy bike insurance to comply with the law.
- Financial Safety
It can be very expensive to repair a seriously damaged bike or if your bike gets stolen. Bike insurance gives you much needed peace of mind to deal with such situations.
- Third-Party Liability
Apart from damage to your own bike, you must also be careful of another person’s vehicle, property. With bike insurance, you can feel safe even if a third-party brings any claims against you.
Bottom Line
You must renew your bike insurance on time. Companies like Acko General Insurance offer excellent options for buying bike insurance and renewing them. Maintaining a clean driving record and having a good credit score are some of the important steps for getting the best deals on bike insurance renewal.
