How Can Small Claims Be Prevented to Lower Your Bike Insurance Premium?
When buying bike insurance, you may be concerned about the premium payments taking up a major chunk of your expenses. While it is known how important a bike insurance policy is, the cost of premiums tends to deter most people from having insurance coverage for their bikes.
However, if you choose to buy your two wheeler insurance online, you can customise your policy as per your needs and keep your bike insurance premiums reasonable and affordable.
For example, if you own a Royal Enfield bike, one of the best ways to lower the premium for your Royal Enfield insurance is to avail of the No Claim Bonus discount on the premium. It is offered to policyholders when they do not file a claim for one or more consecutive policy years.
The Importance of No Claim Bonus in Bike Insurance
The No Claim Bonus (NCB) is known to provide substantial savings on your 2-wheeler insurance premium. This discount accumulates over time, increasing with each claim-free policy year.
The No Claim Bonus is essentially a discount on the premium for bike insurance costs for policyholders who do not make any claims throughout the policy year. The discount percentage accumulates progressively, resulting in a greater discount with each successive policy year.
|One claim-free year||20%|
|Two consecutive claim-free years||25%|
|Three consecutive claim-free years||35%|
|Four consecutive claim-free years||45%|
|Five consecutive claim-free years||50%|
However, once a claim is made, the NCB is reset to zero, and the cycle begins again. By avoiding insurance claims for minor damages like scratches and dents, you can secure a significant discount on your bike insurance premium online.
Not claiming your bike insurance can help reduce your premium in the following ways:
- Cumulative Discount: The NCB offers a cumulative discount that increases with each claim-free policy year, leading to substantial savings over time.
- Financial Loss Prevention: Insurance premiums tend to rise over time. By refraining from making small damage claims, you can avoid the increasing cost of your policy and prevent financial loss that may outweigh the repair expenses for minor damages like scratches and dents.
- Claim for Significant Losses: It is advisable to reserve insurance claims for severe losses, repair costs, theft, or third-party events. Filing claims for small damages may reduce your NCB percentage to zero, eliminating potential premium savings.
Why Manage Minor Damages without Claims?
Minor damages to your bike, such as small dents and scratches, are common occurrences and should not happen due to accidents or mishaps. As far as possible, you should try to ensure that you park your bike in a secure spot, away from traffic and crowds. While these scratches may affect the appearance of your bike, they do not have anything to do with its performance and functioning.
Filing a claim for these damages will only impact your No Claim Bonus discount. If you have accumulated one or more years of NCB discount, it will be reset once you file the claim. And by the end of the year, the number of small claims for minor damages is much more likely to be higher than a single major damage to your bike.
Therefore, it is better to occasionally pay for small damages from your pocket to save your NCB discount and avail yourself of a lower bike insurance premium in the upcoming policy year.
Other Ways to Reduce your Premiums
- Compare Policies
When purchasing two-wheeler insurance, explore all the options available online. Insurers often list their plans and features on their websites, allowing you to compare different offerings. Select the least expensive plan that suits your needs, effectively reducing your insurance premium.
- Choose Riders Wisely
When opting for comprehensive insurance, carefully select add-on covers. Only include riders that are necessary, as unnecessary add-ons can increase insurance costs. Customise your coverage to save on premiums.
- Install an Anti-Theft Device
Having an approved anti-theft device installed in your vehicle can lower your insurance premium. Such devices reduce the risk of theft, resulting in reduced premiums. Ensure the device is approved by the Automotive Research Association of India (ARAI) to qualify for the discount.
- Drive Safely
Insurance companies consider driving records when determining premiums. A clean record with no traffic offences or accidents makes you eligible for lower premiums than those with a history of incidents.
Though your bike insurance policy is specifically designed to provide financial assistance when your bike is damaged, always remember how by avoiding small claims, you can save more on your policy and also become a more responsible policyholder.