How to Save Money During Your Two-Wheeler Insurance Renewal: Smart Tips for Riders

When it is time to renew your two-wheeler insurance, you need to review various insurance options carefully. The two wheeler insurance renewal offers you a unique opportunity to evaluate your existing plan, make changes according to your requirements, and reduce the overall costs.

Moreover, making informed choices can help you save a significant amount on premiums while still securing comprehensive protection. In this blog, we will discuss the tips you can follow to save money on two-wheeler insurance renewal.

8 Tips to Reduce Two-Wheeler Insurance Premiums on Renewal

Here are a few tips and strategies you can follow to lower your two-wheeler insurance premium on renewal:

1. Evaluate Your Coverage Requirements

Before you renew your two-wheeler insurance, you must assess whether the current coverage aligns with your requirements. The requirements may change depending on your bike’s age, usage and maintenance level.

For instance, if your bike is older than 5 years, you can opt out from certain add-ons and can gain benefit from a lower Insured Declared Value (IDV) to reduce your premium.

2. Compare Insurance Policies

Renewal is the ideal time to compare insurance offerings from different providers to ensure that you are getting the best third party bike insurance or comprehensive coverage. Shopping around for a two-wheeler insurance policy can help you uncover better prices and flexible terms, as each insurer may offer unique benefits or premium rates.

Moreover, you can use the online comparison tools from different insurers to determine the best two-wheeler insurance according to your requirements and budget.

3. Select the Right Add-Ons Carefully

Including add-ons on your plan can enhance your policy but will increase the premium. Hence, it becomes necessary to select the right add-ons and include them on your plan while renewing to avoid unnecessary costs.

You must evaluate your requirements and select the add-ons that offer real value. For instance, if you travel long distances regularly, you can add roadside assistance to your coverage. However, if your usage is minimal, you can avoid this add-on cover.

4. Select the Right Deductible Amount

A deductible is the contribution you pay when filing a two-wheeler insurance, and the insurer will pay the major portion. Every two-wheeler insurance plan holder must pay an amount of compulsory deductible.

It is a voluntary deductible where you can increase the amount of deductible more than the mandatory ones. Hence, it reduces the amount of premium but decreases the claim amount paid by your insurer. So, choose the right amount of deductible at the time of renewal.

5. Take Advantage of No Claim Bonus

When you ride safely and do not raise an insurance claim during your existing plan, you will get a no-claim bonus. The no-claim bonus will help you lower your premium when you renew your existing plan.

However, the no-claim bonus is not limited to a single provider. While comparing policies from different insurers to choose the best two-wheeler insurance policy, you can look for insurers that offer a more substantial reduction for your accumulated NCB.

6. Review the Insured Declared Value

The insured declared value (IDV) of your two-wheeler is the amount the insurance company will pay you in case of total loss or theft. It gets calculated on the basis of your bike’s age and depreciation, which influences your premium.

Therefore, choosing the right IDV helps you manage your two-wheeler insurance premiums effectively. You must avoid higher IDV, which will increase your premium but will offer enhanced compensation.

7. Consider Long-Term Insurance

Nowadays, many insurance companies offer multi-year two-wheeler insurance plans, covering two or three years instead of the usual annual renewal. Opting for a long-term policy can lead to significant savings and several advantages. First, insurers often provide discounted premiums for long-term commitments, reducing administrative costs and customer turnover, which results in lower annual premiums over time.

In addition, a long-term policy protects against premium inflation, safeguarding you from potential rate hikes during the policy period.

8. Renew on Time to Avoid Policy Lapse

Delaying your insurance renewal can lead to a policy lapse, resulting in fines, the loss of no-claim bonuses, and re-inspection requirements. Renewing on time helps you avoid these penalties and maintain any accumulated benefits. Moreover, timely renewal prevents additional costs from penalties and re-inspection charges, which can add to your expenses.

An expired policy means forfeiting any accumulated NCB, leading to higher premiums upon reinstatement. By renewing promptly, you ensure you retain this valuable discount and protect your financial interests.

Final Words

Henceforth, renewing your two-wheeler insurance plan does not have to be a repeat transaction. You can reassess the coverage, explore other insurance options, and adjust your policy to lower the insurance premium. In addition, you can take time to make strategic choices to keep the cost down and save a lot on your two-wheeler insurance premium.

ALSO WATCH