While it is mandatory for every vehicle owner to purchase at least a third-party liability-only insurance policy for their vehicle, it is, in fact, highly recommended that all vehicle owners purchase a more comprehensive insurance plan that will provide an enhanced coverage for themselves, their co-passengers, and their vehicle. Given that, we have listed out a few tips to help you reduce your insurance premiums without compromising on the type of coverage.
1. Avoid making small claims: All motor insurance providers offer a no-claim bonus to policyholders who don't make any claims during a given policy year. This no-claim bonus that you may avail can play a significant role in reducing your premium payable for the following policy year. Thus, in order to keep the no-claim bonus intact, make sure to avoid making any small claims during the policy year.
2. Choose the right coverage type: When you purchase a two-wheeler insurance plan, you can opt for a third-party liability only cover, a comprehensive insurance plan, or a long-term policy. Thus, make sure to assess your needs and premium payment capacity before purchasing an insurance plan. If you are an individual who rides their vehicle often, make sure to go for a comprehensive or long-term insurance plan. On the other hand, if you use your two-wheeler very minimally and are an experienced rider, you can opt to purchase a third-party liability insurance policy and save on the premium.
3. Purchase add-ons wisely: Like how you are given the option to enhance your policy with riders in the case of health and life insurance plans, motor insurance providers also allow you to purchase add-ons to increase the protection accorded by the base insurance plan. Certain add-ons that are offered by most leading motor insurance companies include a Personal Accident Cover for the pillion rider, Roadside Assistance Cover, No Claim Bonus Retention Cover, Daily Cash Allowance Cover, etc. Rather than purchasing every single add-on that is offered by the insurance provider, make sure to only purchase the ones that you really require.
4. Install security features: If you have a two-wheeler, installing certain security features that have been approved by the ARAI (Automotive Research Association of India) will fetch you a discount on the premium payable. Insurance companies fix the premium rate based on the risk they undertake. Thus, if the policyholder has installed certain devices for added security, the amount of risk that the insurer undertakes will be lesser, thus helping you secure a lower premium rate.
5. Ask for discounts: Before purchasing any insurance plan, make sure to ask the insurance agent or representative for discounts. Certain insurers will offer age-related discounts to policy buyers, where you get a preferential premium rate if you are an experienced rider. Similarly, certain insurers provide gender-related discounts, discounts for opting for a long premium tenure, etc. Thus, always make it a point to check if the insurance firm offers any discounts that can be applied to the premium amount.
6. Opt for a long policy tenure: Unlike car insurance policies which are yearly renewable, two-wheeler insurance plans can be purchased for a longer tenure. Thus, with two-wheeler insurance, you can opt for a policy tenure of 1 year, 2 years, or 3 years. Opting for a long policy tenure will help you save on the premium amount as it remains locked for the duration of the policy tenure. Thus, unlike annual policies where the third-party premium amount keeps increasing on a yearly basis, long-term policies don't attract this hike in premium.
7. Opt for deductibles: Deductibles can be of two kinds – compulsory and voluntary. In the case of a compulsory deductible, the deductible amount is fixed by the insurance provider. Thus, you are required to pay that percentage of your claim amount mandatorily. On the other hand, certain insurance providers will also allow you to opt for a voluntary deductible. Choosing a higher voluntary deductible will reduce your premium payable, and vice versa. However, you should ensure that you have the necessary funds to pay for your part of the claim amount before opting for a high voluntary deductible.
8. Buy policies from the same insurer: It is advisable to purchase various insurance products from the same insurance company since the insurer is likely to provide you a loyalty discount or added benefits. Thus, since two-wheeler insurance comes under the purview of general insurance, make sure to check if the insurance company also offers health insurance plans, car insurance plans, personal accident plans, etc., so you can purchase the suitable insurance policies.
9. Renew your policy on-time: As a policyholder, it is essential that you remember to renew your two-wheeler insurance plan before the completion of the policy tenure. Several insurance providers have a hassle-free renewal process, where you can complete the renewal by entering certain policy details and paying the due premium amount online, without any unnecessary paperwork. Non-renewal of your insurance plan within the completion of the grace period could lead to termination of your insurance cover and loss of your accrued benefits. Thus, if you have an active insurance plan, make sure to set up an online policy renewal reminder.
10. Compare insurance plans: Before you purchase an insurance plan, it is vital that you compare various insurance plans that are offered by leading insurance companies in the country. You can either use an online third-party insurance comparison website to compare plans or visit individual insurer websites and compare plans. When comparing policies, make sure to read through the policy features, benefits, claims procedure, incurred claim ratio of the company, premium payment channels, etc. Further, make sure to request for premium quotes on the insurer's website and opt for a plan that provides you adequate coverage at a competitive price.
Taking even a few of the tips mentioned above into consideration can help you reduce your premium payable and save money on your insurance policy. However, always remember that your insurance plan should provide you sufficient coverage in case of an untimely eventuality. Thus, make sure to consider your coverage needs at the time of purchasing your insurance plan, and not just the premium payable.