Does Two-wheeler Insurance Get Cheaper as Your Bike Gets Older?

4 min read

The first and foremost important fact that you must know is that you’ll not be allowed to drive the two-wheeler without proper insurance coverage. So, you must buy an insurance policy covering your bike as soon as you purchase it. Further, this type of insurance will not only save you from fines and other penalties for violating any law but will also cover your bike against any sort of wear and tear. So, if your bike is damaged due to an accident, theft, or any other unforeseen reason, the insurance provider will come to your rescue. 

Smart policyholders have insured their two-wheeled beauty as soon as they buy one. However, there are several features of a two-wheeler bike insurance policy that new policyholders are unaware of, one of which is the reduction in the premium value of two-wheeler insurance over the years. This blog will serve as a guide through the process.

Why does the two-wheeler insurance premium decrease with time?

Most bike owners know that bike insurance policies get cheaper with time. However, they don’t really understand how this works. We want to give you a better understanding of how it works:

Your vehicle loses value with time. The truth of the matter is that no matter how much you maintain your vehicle, it will still depreciate over time. The premium cost of the policy depends on many factors like the model of your vehicle, your driving experience, where you drive, and so on.  

What this means is that the older your vehicle, the lower a premium a company is likely to charge you. You can keep in touch with your insurer and ask for a quote once every year when your two-wheeler turns five years old. 

Also Read: What We Need to Know about Insurance Before Buying an Old Bike?

However, if you are looking to renew your old bike policy, here are some tips on how you can reduce the cost even further:

Tips of Reducing Premium of Old Bike Policy

1. Choose a Long-Term Two-Wheeler Insurance Plan

According to new IRDAI rules, insurance companies are now permitted to provide long-term bike insurance online plans that offer comprehensive coverage. One significant benefit of these long-term policies is that the yearly bike insurance price is cheaper than when short-term policies are renewed each year.

Also Read: How multi-year Insurance Plan is Beneficial for your Bike?

2. Select Your Add-Ons With Caution

There’s no doubting the advantages of bike accessories. Common add-ons like zero depreciation cover, equipment cover, engine protection, and medical cover enhance your plan’s coverage while helping you save money. Add-on coverage, on the other hand, raises premium expenses.

The wise course of action here is to examine each rider cover and select just those that you are more inclined to utilize. For instance, if you typically drive your motorcycle alone, the accident coverage for pillion passenger add-on coverage is unnecessary for you. You can avoid it if you want to lower your two-wheeler bike insurance online premium rate.

3. Purchase an Anti-theft Gadget

With an anti-theft gadget, the insurance firm’s risk is decreased since the likelihood of your bike being stolen is greatly reduced. Insurers cut premiums for motorcycles outfitted with these gadgets. Nevertheless, the anti-theft device you attach must be certified by the Automotive Research Association of India in order for you to receive a discount on your bike insurance online premium value.

Also Read: What We Need to Know about Insurance Before Buying an Old Bike?

4. Join a Riders Organization

If you enjoy riding your motorcycle, you can enter a rider’s group such as the Indian Automobile Association. According to the Insurance Regulatory and Development Authority, insurance companies must provide a discount to the bike owners who join these organizations.

5. Avoid Filing Minor Claims

No-claims discounts (NCB) are your secret to cheaper premiums. With almost every insurance provider offering No-Claim Bonus, you have no reason to stay uninsured. You take out a comprehensive policy and avoid claiming in the first year. The price you pay for the second policy year is lower than that of the first year because you take NCB into account. The NCB that you earned in the previous year is accumulated and starts all over again.

Thus, if you avoid filing minor claims, you can receive a discount of around 50% on your overall insurance premiums starting from the 5th consecutive year of zero raised claims.

Conclusion

A two-wheeler insurance online policy is all about maintaining a balance between your needs and financial capability. The policy must cover your basic liability and should be cost-effective as well. Unlike car or four-wheeler insurance, the coverage offered for a motorbike is less and hence it should be available at an affordable price. 

There are numerous insurers present in the market through which you can buy two-wheeler insurance online. You need to evaluate the insurance quote carefully to find which policy would be most suitable for you. Along with comparing policies, it is equally important to compare the quotes of the insurers present in the market for you to get the best coverage at a suitable price.

SHARE THIS ON
Author Bio
Author Image

Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2022; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2022 Mahindra Insurance Brokers. All Right Reserved.

SPEAK TO AN EXPERT