How to Reduce Your Two Wheeler Insurance Premium: 9 Tips

two wheeler insurance premium
Tips to reduce two wheeler insurance premium

Lack of knowledge may cost you a high two wheeler insurance premium. However, by adding some knowledge and by following some tips, you can reduce the premium for your insurance policy and save some money.

According to the Motor Vehicle Act third-party insurance is legally mandatory in India. If you want to cover the bike from any damage or loss then you have to take a comprehensive insurance policy. It will cover both its own damage section of the bike and third-party damage also.

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In this article, I am discussing some powerful tips that can be helpful to reduce your two wheeler insurance premium. So, let’s understand what are those tips:

1- Multiple Quotations and Discount Options

First of all, you take your RC and Previous insurance if available, and ask for quotations from five to six companies at least. You can ask for two types of quotations – one with the same benefits from all five to six companies and another with some different benefits.

You will find a lot of differences in the pricing of your two wheeler insurance premium. Now give some time and check all of the options. Select the quotation in which you see the lowest premium with the benefits you need.

After the selection of the final quotation, you may ask your agent to provide some extra discount. Possible that your agent may take some extra discount on behalf of your good track record and NCB.

Maybe your bike is a favorable (Low loss ratio) model for the company so, you may get some extra discount. Comparison is one of the best ways to reduce your two wheeler insurance premium.

2- No Claim Bonus (NCB)

If the policyholder does not file any claim for a complete policy term then the company gives a No Claim Bonus on renewal. It shows that you are a safe driving person and you have driven your bike without any damage or loss for the policy year. You can accumulate up to 50% of the No Claim Bonus.

So, as much as the No Claim Bonus you accumulate, you get the same discount. If you don’t want to pay a high premium for your two-wheeler insurance policy then always try to drive your bike safely and accumulate NCB as much as possible. NCB is very helpful to get maximum discount and reduce your two wheeler insurance premium.

3- Purchase Multi Years Policy

This is one of the best ways to reduce your two wheeler insurance premium. Many companies offer a multi-year policy for two-wheeler. You can purchase 2 years or 3 years of the policy.  And you may get some extra discount on the purchase of a multi-year policy.

You can check the premium for a one-year term and two years or three years term. If you find that you are getting a good discount and your budget is also ok then you can buy it. It will help to save some money.

4- Needful Add-On to Reduce Two Wheeler Insurance Premium

There are several add-ons available for bike insurance. Add-ons like Zero Depreciation, Return to Invoice, consumable Cover, Engine Cover, Roadside Assistance, and many others. Please select add-on the cover as per your need only. If you will buy all the covers then it may be a high premium.

To optimize the premium, analyze vehicle vintage, make and model, etc and then do the selection of add-on. If you select additional coverage wisely you can reduce your two wheeler insurance premium.

5- Selection of Right IDV

This factor is a very special one for you because ultimately it is your vehicle’s current value. IDV (Insured’s Declared Value) is the current value of your car which is decided after depreciation.

You can reduce your premium by reducing IDV but too low IDV is not good. What should you do? Too high IDV? Or is Too low IDV? Don’t go for any one of these either too high or too low.

In one case you will pay a high premium and in another case, you will pay a low premium. You analyze the details of your bike, and check the resale value in the market. Ideally, you should keep IDV which is best suitable for your bike.

6- Owner Driver Cover

Suppose you have two bikes in your name. One is used by you and another is used by a family member. In this case, you can opt for the owner-driver cover for the bike you use. You can avoid this cover for the vehicle which your family member uses. However, it depends on your analysis, risk, and decision-making.

7- Renew on Time

From time to time insurance companies sends renewal reminders to their policyholder. However, some customers missed it and don’t renew on time. When they purchase the policy after a long period of lapsed policy then it cost them a high premium. Why it is? To reduce your two wheeler insurance premium, it is important that you renew your policy on time and maintain NCB.

If you do not renew the policy on time and cross 90 days before the expiry date of the policy then you lose all accumulated no-claim bonus. In this case, you pay a high premium for a new policy because you do not have an NCB discount. You also get a high premium because some company gives less tariff discount and has zero NCB.

You can understand with below chart:

Policyholder APolicyholder B
Renewed policy for five years without any claimContinue renewed policy for five years without any claim
NCB = 50%Accumulated NCB = 50%
6th Year renewal due6th Year renewal due
Renewed on timePolicy Lapsed, Date crossed 90 days, Lost NCB
NCB 50% and high tariff discountPurchase a new policy with 0 NCB and low tariff discount
Low PremiumHigh Premium

This is the importance of the renewal of policy on time to reduce your two wheeler insurance premium.

8- Online Discount Options

You should check insurance options and two wheeler insurance premium online also. Possibly you may get some cheaper policies online. Some companies offer you an extra discount on purchasing online. It reduces their marketing expenses that’s why companies offer this discount. However, if you can two wheeler insurance premium with your insurance agent also.

9- Anti-Theft Device and Automobile Association Membership

You may get an additional discount if you have installed an anti-theft device on the bike and the device should be ARAI approved. Possibly you get an extra discount if you have a membership of the Automobile Association of India.

So, I hope all the above points are helpful for you to reduce your car insurance premium. Please don’t focus on premium only. You should also have a check on features, benefits, company, claim settlement ratio, and services.

The most important point, read all the exclusions, Terms, and Conditions of your two-wheeler insurance policy when you buy it.

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