Types of Insurance CoverIn India, you can opt for either of the two bike insurance policies:
1. Third-Party Insurance:This plan only covers the claim for damages caused to a third-party by the insured bike. But you will not get any coverage against damages or theft.
2. Comprehensive Insurance:This plan will offer you coverage against any financial liabilities arising from theft, damage to the bike, injury to the owner-driver and damages caused to the third-party.
Ways to Reduce Bike Insurance PremiumsOnce you have decided on the type of cover you need; the next step is to purchase a policy with a low premium. Many dynamics can reduce bike insurance price. Here are some of those factors:
1. Bike Selection:The model and make of the bike are an important determinant in deciding the premium. A luxurious, rare, or expensive bike will likely have a higher price of insurance as compared to a familiar brand. Furthermore, insurance costs are less for older models or second-hand vehicles since they tend to incur lower restoration and replacement expenditures.
2. Annual Payment of Premium:Insurance companies often provide a discount if you pay the complete annual premium of your bike. The total amount of premium paid will always be less when paid yearly, as compared to monthly, quarterly, or even half-yearly.
3. Avoid Claiming Small Amount:Letting go of small insurance claims can earn you a no-claim bonus on the premium of the next year. This bonus can compensate for the payment of small damages that you make out of your pocket.
4. Enhance Security Features:If you equip your bike with additional, high-standard safety and security gadgets, your vehicle is less likely to be sabotaged and bear fewer incidental costs. As a result of this, insurance companies will be encouraged to offer you a low bike insurance price.
5. Single Insurer Policy:You can avail a loyalty discount or bonus by purchasing your health, medical, life, property, and bike insurance plans from the same company.
6. Constant Comparison of Policies:It can be beneficial to evaluate various available plans in the market. In addition to this, while renewing the policy, check if any other insurer is offering a lower premium and shift accordingly.
7. Fewer Modifications:You are likely to pay a higher premium if you install additional aftermarket equipment to modify your bike.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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