Penny Saved is Penny Earned: Savings Guide for Bike Insurance Buyers
Penny Saved is Penny Earned: Savings Guide for Bike Insurance Buyers
Deepak recently bought himself an expensive top-end model equipped with costly parts. Understanding the uncertainty of the road, he is looking to insure his bike. He knows that a valid insurance policy for his bike is important legally as it is financially. A bike insurance policy is his safety net in case his two-wheeler is damaged or lost in theft, accidents or natural disasters. By paying a premium, Deepak also knows that should his bike be damaged, partially or totally, the insurance company will help make up for the losses. Yet, Deepak is looking for a bike insurance policy that provides maximum coverage at minimum cost.
With many options available, Deepak follows these tips to get the best price for his insurance policy.
1. Buying bike insurance policy online: With a digital ecosystem at play, purchasing an insurance policy online is simple and hassle-free. Just like Deepak, you too should buy the policy directly from the insurer. While aggregator sites are a great way to view all options available, but buying a BIKE INSURANCE policy online from the insurance company will allow you to pay the lowest prices yet choose a policy that is best suited for you.
2. Adjusting Insured Declared Value of the bike: The IDV or Insured Declared Value is the maximum sum assured fixed by the insurer to pay the policyholder in case of total or partial loss due to accidents or thefts. While buying two-wheeler insurance, the IDV of your vehicle is determined on set parameters. Like Deepak, using the bike insurance premium calculator, you too should maintain optimum IDV as this helps you choose the right policy for your two-wheeler.
3. Getting benefits of No-Claim Bonus: Insurers provide Bike Insurance No Claim Bonus (NCB) to policyholders practising good road etiquette.The bonus ranges from 10% - 50%, depending upon the years you do not file a claim. This has a significant impact on the premium paid. Thus, similar to Deepak, you too should curb your need for speed to get maximum benefits from the accumulated NCB.
4. Increasing compulsory deductible: Compulsory deductible is the amount that the insurance company will deduct from the overall claimed amount. While a basic compulsory deductible is defined in every policy, the insurance companies also allow people to increase their compulsory deductible and take a discount on their premium. This makes bike insurance policy cheaper to buy and more affordable for people like Deepak, who are responsible drivers and are not expected to make claims on policy anyway.
5. Careful selection of add-ons: When the base policy does not deem sufficient, insurers offer a number of add-ons to better protect your two-wheeler. But, going overboard can also increase the cost of your bike insurance policy. Therefore, like Deepak, it is advisable to analyze your two-wheeler usage before opting for add-on covers. This will help you get the best out of your policy without paying hefty premiums.
6. Buying multi-year policy: In India, insurers offer varying insurance policies such as THIRD-PARTY COVER,STANDALONE OWN DAMAGE BIKE INSURANCE COVER and MULTI-YEAR COMPREHENSIVE BIKE INSURANCE COVER. While the third-party cover is mandatory, purchasing a standalone own damage or comprehensive cover is upon choice. However, while these covers might seem expensive, but in the long run, they always work out to be remarkable value for money.
Conclusion
You, too, can be smart like Deepak – getting maximum benefits for a minimum value. It is always advisable to consider the above-mentioned factors while purchasing a bike insurance policy. Also, do not forget to read the terms and conditions before making a bike insurance policy purchase. Happy purchasing!
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.
This blog has been written by:
Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry
A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance
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