Renewing your bike insurance is crucial to ensure continuous financial protection and legal compliance. However, many policyholders overlook essential factors that can help them maximise savings.
Whether you’re renewing your policy with your current provider or exploring better options, considering the right elements can lead to substantial cost reductions. Here’s a detailed guide to help you make informed decisions when it comes to 2 wheeler insurance renewal.
Two-Wheeler Insurance Renewal: Key Factors
1. Review Your Existing Policy
Before renewing your bike hero insurance, go through the details of your current policy. This includes:
- Coverage type (third-party or comprehensive)
- Expiry date
- No Claim Bonus (NCB) eligibility
- Existing add-ons and benefits
Analysing these elements will help you determine whether you need additional coverage or should choose a more affordable plan.
2. Compare Different Insurance Providers
Sticking to the same insurer may seem convenient, but comparing policies from multiple providers can help you get better coverage at a lower premium. Factors to compare include:
- Premium costs
- Claim settlement ratio
- Customer service reviews
- Available discounts and add-ons
Using online comparison tools can simplify this process and ensure you choose the most cost-effective option.
3. Utilise No Claim Bonus (NCB) for Additional Savings
The No Claim Bonus (NCB) is a savings offered for the time you don’t claim your insurance. You can get an NCB ranging from 20% to 50% on your renewal premium if you have not raised a claim in the previous policy period. Ensure that your NCB is correctly applied to your new policy to maximise savings.
4. Opt for the Right Coverage Type
Two-wheeler insurance is available in two main types:
- Third-Party Insurance: Mandatory by law, covering liabilities to third parties but not your own vehicle.
- Comprehensive Insurance: This covers both third-party liabilities and damages to your bike from accidents, theft, fire, and natural disasters.
If your bike is older, third-party insurance may be enough. However, to ensure financial protection, comprehensive insurance is recommended for new or high-value bikes.
5. Consider Choosing a Higher Voluntary Deductible
A deductible is the portion of the claim amount you pay out of pocket. Opting for a higher voluntary deductible can significantly reduce your insurance premium. However, ensure you choose an affordable amount in case of a claim.
6. Customise Your Policy with Essential Add-Ons
While opting for unnecessary add-ons can increase your premium, selecting the right ones can enhance protection and savings. Some valuable add-ons include:
- Zero Depreciation Cover: Ensures full claim amount without depreciation deduction.
- Roadside Assistance Cover: Provides immediate help in case of breakdowns.
- Engine Protection Cover: Ideal for bikes frequently used in flood-prone areas.
- Personal Accident Cover: Offers financial assistance for injuries or disability due to accidents.
Choose add-ons that align with your usage and location to avoid unnecessary expenses.
7. Ensure Timely Renewal to Avoid Lapse
Allowing your policy to lapse can lead to penalties, loss of accumulated NCB, and even require a vehicle inspection before renewal. Setting up auto-reminders or opting for long-term insurance policies can help you avoid missing renewal deadlines.
8. Evaluate the Claim Settlement Ratio of the Insurer
A high claim settlement ratio (CSR) indicates the insurer’s efficiency in processing claims. Choosing an insurance provider like Bajaj Allianz General Insurance Company with a high CSR ensures a smoother claims experience and reduces the chances of rejection.
9. Consider Long-Term Two-Wheeler Insurance
Opting for a multi-year insurance plan (two to three years) can help you avoid yearly premium hikes, secure a fixed premium, and reduce the hassle of frequent renewals. Many insurers, including Hero Insurance from Bajaj Allianz General Insurance Company, offer long-term plans with additional savings.
10. Understand the Terms and Conditions
Before proceeding with 2 wheeler insurance renewal, thoroughly read the terms and conditions to avoid surprises during claims. Pay attention to:
- Exclusions in the policy
- Renewal grace period
- Claim settlement process
Conclusion
Renewing your bike insurance doesn’t have to be a costly affair. By reviewing your current policy, utilising NCB benefits, comparing multiple insurers, and selecting the right coverage, you can significantly reduce your premium while ensuring maximum protection. Whether you choose hero insurance or any other bike insurance, prioritising these factors will help you achieve better savings and hassle-free insurance renewal.
*Standard T&C Apply
##All savings are provided by the insurer as per the IRDAI-approved insurance plan.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
*Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
*Claims are subject to terms and conditions set forth under the motor insurance policy.
