Two wheelers are the most preferred mode of transport of most Indians. The ability of two wheelers to snake in and out of the traffic beats the delay caused by increasing road traffic. Owning a two-wheeler also necessitates paying for a motor insurance policy under the Motor Vehicles Act, 1988. Every motor insurance policy including a two wheeler insurance cover includes a third-party liability cover along with scope for a comprehensive insurance plan.
While paying for a third-party liability cover is mandatory, taking into consideration the risks involved on today’s roads, it would be worthwhile to consider buying a comprehensive two wheeler insurance plan too. This is because paying only that is necessary for getting the bare minimum coverage can result in owners of two-wheeler vehicles having to pay more for repairs and maintenance in future.
However, most people shy away from availing the benefits of the latter as it involves an added payment on the premiums charged. One may consider following certain tips that would help lessen the burden of insurance premiums while enjoying cover against risks involved while driving. They may be listed as:
Do not Jump to Make Small Claims:
Policyholders paying premiums of a two wheeler insurance policy can benefit from the no-claim bonus offered by motor insurers. This means that if the policyholder does not make any claims during a given policy year, they are eligible for a discount on the premiums payable in the following year. To ensure availing the no-claim bonus, policyholders must avoid making any small claims during any policy year.
Choose Bike Insurance Add-on Covers Wisely:
As opposed to the myth of add-on covers available on health insurance and life insurance policies only, motor insurance companies also offer bike insurance add-on covers to their policyholders. The idea of purchasing an add-on cover is to augment the level of protection promised by the base insurance plan. The common add-on covers that insurers offer are personal accident cover, roadside assistance cover, daily cash allowance cover, no-claim bonus protection cover, zero depreciation cover, engine and electronic circuit cover, etc.
To save on the premium payments or the amount that one pays as premium, it is necessary to choose only that add-on cover that is required instead of choosing multiple add-on covers based on hearsay. Judging your needs and requirements carefully before opting for any add-on cover helps choose the right add-on cover while discarding the rest.
Choose The Right Kind of Cover:
The policyholders while buying a two wheeler insurance plan can either choose to pay only for a third-party liability cover or pay premiums for availing benefits of both third-party and comprehensive cover. Availing a comprehensive cover means paying additional premium, hence, it is wise to assess if one genuinely needs this cover before opting for it. If the policyholders are frequent riders, then choosing to pay for comprehensive cover makes sense. However, if minimal rides are taken on the two-wheeler or if the two-wheeler is inexpensive in nature, the policyholders must stick to paying only for third-party liability cover.
Recommended Reading: 5 factors that affect your two wheeler insurance premium
Long Policy Terms are Better:
Instead of renewing the two wheeler insurance policy annually, one can buy long term policies too extending up to a period of three years. Buying a long-term policy saves on the premium amount as the latter is fixed for the entire policy term. This proves to be economically cheaper than yearly policies where the premium corresponding to third-party liability insurance keeps increasing each year. Policyholders holding long term policies do not have to bear the burden of paying extra premium.
Summary:
It is necessary to exercise prudence before choosing the right insurance policy. Following a few tips can help save money on premium payments corresponding to the policy one buys. Buying insurance policy means availing cover against possible risk of damage. Hence one must opt for the best possible cover at the least possible price.
