Getting bike insurance is one of the first things you need to do after purchasing a new two-wheeler. It’s not just about protecting your vehicle—it’s also a legal must-have. In India, third party bike insurance is the minimum required by law. It covers any damage or injury caused to another person or their property while riding your bike. But many new bike owners often worry about paying high premiums. The good news is that with the right approach, you can reduce your insurance costs without losing out on important benefits. This blog will guide you on how to get the best premium rate for your new bike insurance.
Tips to Get the Best Premium Rate
Table of Contents
1. Use a Bike Insurance Calculator
Begin by comparing premiums with a trusty online bike insurance calculator. This calculator lets you enter your bike’s make, model, registration information, and choose the type of policy and add-ons. It instantly shows you the premium rate, and you can tweak variables until you get a cost-effective plan.
2. Choose the Right Type of Cover
If you’re seeking a low-cost one just for the sake of legal compliance, the third party bike insurance policy would normally be cheapest. Yet, if you have a costly bike but live in a hotbed of theft or areas that are prone to natural disasters, a comprehensive cover could be more valuable in the long run even though it comes with a relatively higher premium.
3. Opt for Long-Term Policies
Long-term two-wheeler third party insurance can insure your vehicle for 5 years at a stretch. In case of a long-term policy, renewal hassle is minimized and can also provide cost savings over purchasing yearly plans.
4. Keep Your Driving Record Clean
Maintaining a clean riding history without any claims not only reflects safe driving habits but also helps you save money in the long run. Insurers reward this responsible behaviour through a No Claim Bonus (NCB), which starts at 20% and can grow up to 50% after five consecutive claim-free years. This bonus is applied as a discount on your renewal premium, making it a valuable incentive for staying accident-free.
Platforms like TATA AIG support this benefit and allow policyholders to carry forward their NCB with ease. You also gain the confidence of choosing a provider known for transparent practices and dependable service, backed by the trusted TATA name.
5. Be Smart with Add-On Covers
Add-ons like zero depreciation, roadside assistance, return-to-invoice, and engine protection are useful but add to the overall expense. Opt for only those add-ons that really suit your requirements. For instance, if you drive mostly within city limits and take good care of your vehicle, you might not need roadside assistance or consumables cover.
Avoiding unnecessary add-ons can reduce the premium without compromising on necessary protections.
6. Choose a Higher Voluntary Deductible
Each bike insurance policy has a compulsory deductible — a set amount you pay yourself before the insurer pays the remaining amount. On top of that, you can also choose a voluntary deductible to reduce your premium further.
By opting to pay a slightly higher proportion of any claim, you limit the insurer’s liability, which in turn, gives you a lower premium. Make sure, however, that the voluntary deductible is something you can easily afford in the event of a claim.
7. Install Safety Devices
Insurers normally reward policyholders who actively mitigate the risk of theft or loss. Fitting ARAI-approved safety features such as anti-theft alarm systems or GPS tracking devices can earn you minor but significant savings on your premium.
The lower risk of a safer vehicle facilitates insurers to price better.
8. Avoid Modifications
Customising your new bike might make it look stylish, but modifications can increase your premium. Enhanced parts, expensive paint jobs, or added power boosters increase the bike’s market value, which increases the Insured Declared Value (IDV) — a key factor in premium calculation.
Unless necessary, avoid modifications to keep your insurance cost-effective.
9. Select an Appropriate IDV
IDV is the market value of your bike at present and is the highest sum the insurer will pay in the event of total loss or theft. The higher the IDV, the better the coverage but the higher the premium. The lower the IDV, the lower the premium but it could result in low compensation in the event of a claim.
When buying a fresh bike insurance plan, choose an optimal IDV that provides satisfactory protection without excessive payment.
10. Membership Discounts
If you are a member of an authorised automobile association, such as the Western India Automobile Association (WIAA) or the Automobile Association of India, you may be eligible for additional discounts on your premium.
These associations often partner with insurers to offer benefits for responsible riders.
11. Consider the Geography
Insurance premiums are affected by where you live and ride. Metro cities and Tier-1 regions with dense traffic or higher theft rates typically have higher premiums. If your vehicle operates in a relatively safe zone, ensure the insurer accurately reflects your location in the policy. This may help reduce the premium slightly.
12. Compare Before You Commit
Last but not least, comparing plans from multiple insurers helps you evaluate not just the premium but also service benefits like claim settlement ratios, garage network availability, and customer support responsiveness.
While doing this, ensure you’re comparing policies on similar terms — coverage type, IDV, add-ons, deductibles, etc. This ensures you don’t end up choosing a cheaper policy with fewer benefits unintentionally.
Getting the best premium for your new bike insurance is not all about getting the cheapest price – it is about value for money. Selecting the right kind of cover, selecting the right add-ons, keeping a good record of riding and comparing and personalizing your policy using online tools are some of the best means of balancing cover and cost.