How to Save Money on Two Wheeler Insurance in India by Renewing It Earlier?

Save Money on Two Wheeler Bike Insurance Policy by Renewing Earlier in India

If you are looking to renew your two-wheeler insurance policy, it makes sense to get a quick motor insurance renewal done before the policy expires. You can get the renewal done up to 45 days in advance. This will help you to save money and get a very economical deal on the coverage. Take a look at this article to know how this is possible.

Price Hikes by the Top Insurance Companies

Every year, the motor insurance companies in India hike the bike insurance premium rates. This is done for two main reasons. They are:-

Inflation

Much like the case in all other industries, inflation takes a toll on the bike insurance sector as well. With prices rising all around, the insurers can’t help but hike the prices of the vehicle insurance policies as well. This usually takes place at the beginning of a financial year. So if your auto insurance policy is due for renewal around the first week of April, get it renewed earlier to avoid the yearly price hike. You can get the insurance coverage for the next year at the previous year’s rate.

Claim increase

The number of vehicles on the Indian roads go up each year. Subsequently, the number of accidents increase as well. This is why there is an increase in the number of insurance claims too. The motor insurance companies are compelled to pay out a greater number of claims and this increases their financial liability. As a result, to combat the costs, they take more money from the policyholders in the form of a higher two-wheeler insurance premium. The price correction again happens around the new financial year, so you gain by renewing the bike insurance policy before March 31st.

Other factors why early renewal is cheaper

Apart from the motor insurance provider’s own financial reasons, there are some reasons why your vehicle insurance policy may cost cheaper if you renew it earlier. They include:-

No inspection

When you renewing your bike insurance plan in advance before it expires, the process is completed online instantly. There is no need for the insurance provider to send an inspector. You just pay the premium to extend the coverage. However, when a policy lapses and inspection is done, the inspector notices the changes in the bike. This often leads to a large rise in the bike insurance premium of the next year. Avoid this by getting your motor insurance renewal done before time.

No late fees

You are at times asked to pay a late fee when the bike insurance policy stays lapsed for a long time. This leads to an unnecessary expense that pushes up the overall costs of your bike insurance coverage. Renew your plan on time and you never have to worry about late fees or any such excess charges or fines.

Loss of NCB

The no-claim bonus is a reward you earn when you do not make a claim in an entire policy period. if you maintain several claim-free years, you earn a higher NCB which keeps accumulating. Your insurance provider offers this reward as a discount on the premium of the following year’s vehicle insurance premium. However, if you do not renew your motor vehicle insurance plan on time, you stand to lose your entire pool of NCB. This can prove to be very costly, as you can save up to 50% of the money on your bike insurance plan due to the no claim bonus.

These are some ways in which you can save money by getting a motor insurance renewal done earlier. Keep them in mind and bring in the savings.

Points to remember before you renew motor insurance online

Even when you are renewing your two-wheeler insurance policy earlier, you should keep some very important points in mind. They are:-

Compare before you renew

Never forget to compare insurance quotes before you renew your bike insurance plan. You may find a better option or a better insurer, so comparing is essential. 

Calculate the IDV and NCB properly

Both the IDV, as well as the NCB, determine the premium when you renew motor insurance online. So do check to see whether or not these figures are calculated properly during renewal.

Adjust the deductible

You need to adjust the deductible when you renew your vehicle insurance cover. The lower the deductible, the higher the insurance premium and vice-versa.

Assess the riders

Check to see if the riders you have are all needed or some are redundant. Keep the ones you need and drop the rest.

Final Word About How to Save Money on 2 Wheeler Insurance by Renewing It Earlier

As you can clearly see from the points mentioned above, there are many ways in which you can benefit monetarily if you renew your motor insurance policy earlier. Go online and do the needful to enjoy the benefits.