Two-wheelers are preferred by most people as compared to cars, because of the convenience it offers. However, it is compulsory to even get it insured with at least a third-party insurance for bike, and your safety as well. Indeed, due to the increase in inflation, the insurance premium rates have also increased, and so people are hesitant to purchase the policy because they add up to the expenses. You need not worry about it anymore, as you can easily reduce impact of the increase in bike insurance premium amount, by adopting the following simple measures.
- Deductible
The deductible amount is to be paid by you out-of-pocket for the expenses occurred. You have two types of deductibles- Compulsory and Voluntary Deductible. Under a compulsory deductible, you must pay a specific amount that is pre-decided, and the remaining amount will be paid by the insurer. Whereas in the case of voluntary deductible, you agree on paying a specific price during bike insurance claim, and in return, you receive an additional concession on your insurance premium.
- IDV
Insured Declared Value (IDV) is the current market value of your vehicle, and refers to the depreciation applied to your two-wheeler over the purchase price. This is the maximum amount that you will receive from your insurer, in case of any repairs or replacements in your vehicle. However, to seek an IDV higher than reasonable, would increase the premium on your two-wheeler and not provide any benefit. Therefore, it is wise to declare an appropriate IDV to get some concessions on the premium amount. Premium for a third party insurance for bike varies according to the cubic capacity whereas for a comprehensive policy varies with the IDV.
- No Claim Bonus
No Claim Bonus is a concession you receive on the premium amount at the time of insurance renewal if you do not raise a single claim in your previous policy year. NCB increases with every subsequent claim-free year and goes up to 50% of concession on premium. It not only reduces your bike insurance premium amount but is also transferrable in case you buy a new two-wheeler. The premium of a new bike will be much higher than that of an old one, this same NCB will help you save a considerable amount on the insurance premium of your new vehicle.
- Purchasing insurance policy online
Unlike the older times, you do not have to shell your money on middlemen or insurance agents. Today, all of it can be done online and you can save a lot by simply researching, comparing, and purchasing the policy online. This option saves your money as well as a lot of time, as you don’t have to visit any insurance company’s branch office to carry out the process. Today, if you visit your preferred insurer’s website, you will receive instant quotes along with some beneficial offers that will encourage you in buying the policy even more. You can then compare various policies and choose the one that you feel is most suitable for you. To make comparison easier, you can use the two wheeler insurance premium calculator available on the insurance company’s website and get the approximate amount to be paid.
Follow these steps to cut down on the premium cost of your bike insurance and buy a policy that fits well in your budget. Also, when you’re purchasing the policy, look out for the policy document and go through it thoroughly. You must check the inclusions and exclusions, along with the terms and conditions mentioned in your policy wordings, so you do not face any trouble during an insurance claim. Make the most of the policy that you’ve purchased by also looking at the claim settlement ratio and the claim process. You can always check reviews of the customers online to understand the insurance company’s reputation.
