Many bike owners end up paying more than they need to on insurance simply because they’re unaware of key factors affecting premiums. Whether you’ve chosen a basic third-party bike insurance policy to meet legal requirements or opted for broader coverage, there are practical ways to reduce your premium. With the right choices—from policy type to add-ons and renewal habits, you can lower your bike insurance costs while still getting the protection you need.
Understanding how insurers calculate premiums and what discounts you’re eligible for can make a real difference. A few small decisions can go a long way in helping you save more each year without compromising on cover.
1. Compare Bike Insurance Plans Online
One of the smartest ways to save on your bike insurance premium is to compare plans online before you buy. By checking quotes from different insurers, you can choose a policy that offers the right coverage at an affordable rate.
Focus not just on the premium amount, but also on what the policy includes, like add-ons, claim process, garage network, and service quality. This helps you make a more informed choice and ensures you don’t miss out on better value for the same or lower cost.
2. Do Not Claim for Minor Damages
Raising a claim for minor repairs may be convenient, but it can affect your renewal premium in the long run. By not filing claims for minor damages, you become eligible for a No Claim Bonus (NCB)—a reward that lowers your premium on your own damage coverage.
As per IRDAI guidelines, you can get up to 50% discount on your damage premium if you don’t raise any claims for five consecutive years. This standard benefit is offered by all motor insurers, including TATA AIG, and can lead to significant savings over time.
3. Select Only Necessary Add-ons
Add-ons can enhance your bike insurance coverage, but also come at an additional cost. The key is to pick only those that suit your riding habits, vehicle type, and local conditions.
TATA AIG offers a wide range of add-ons like Engine Secure, Emergency Medical Expenses, Tyre and Rim Secure, and Roadside Assistance. These are useful when tailored to your needs.
For instance, opting for the Engine Secure add-on makes sense if you often ride through waterlogged areas. But if you primarily ride within the city in normal conditions, skipping specific coverage can help you reduce your overall premium without compromising core protection.
4. Renew Your Policy Before Expiry
Renewing your two-wheeler insurance before expiry helps you avoid losing your No Claim Bonus (NCB) and ensures uninterrupted coverage. A policy break can lead to a higher premium and even an inspection before renewal. Renewing on time keeps your discounts intact and saves you from unnecessary costs.
5. Install Anti-Theft Devices
Many insurers offer discounts if your bike is fitted with anti-theft devices approved by the Automotive Research Association of India (ARAI). These devices reduce the risk of theft, which lowers the insurer’s liability and reflects in your premium. If you’re installing one, make sure it’s certified and documented.
6. Increase Voluntary Deductibles
A voluntary deductible is the amount you agree to pay from your pocket at the time of a claim. Opting for a higher deductible brings down your premium. This works best for experienced riders who are confident in handling minor repair expenses without raising a claim.
Ensure the deductible is reasonable and affordable, so you’re not caught off guard during bigger repairs.
7. Keep a Clean Driving Record
While a clean riding record reflects responsible driving, it is not a direct factor in premium pricing in India. Insurers here primarily consider vehicle-related factors like age, engine capacity, policy type, and location. However, avoiding accidents and violations still helps reduce your chances of filing a claim, which in turn helps preserve your NCB.
8. Go with Third-Party Bike Insurance If Appropriate
A third-party bike insurance policy might be enough if your bike is older and used occasionally. It’s legally required and covers liability for injury or damage caused to others. Though it doesn’t cover your own bike, it’s the most affordable option and works well for bikes with lower market value.
9. Use an Online Premium Calculator
An online premium calculator helps you estimate how much your policy might cost. You just need to enter a few basic details like your bike’s make, model, year of manufacture, registration city, and engine capacity. It’s a quick way to compare plans, try combinations, and find a policy that fits your budget.
10. Always Ask for Discounts
Not all discounts are visible during the purchase process. Some insurers, like TATA AIG, offer specific discounts if you meet certain criteria. These include:
● Being a member of a recognised automobile association
● Installing an anti-theft device approved by ARAI
● Choosing a voluntary deductible
● Renewing your policy without raising any claims, making you eligible for a No Claim Bonus
These options can reduce your overall premium.
What Affects Your Bike Insurance Premium?
If you’ve ever wondered why your friend’s bike insurance costs less—or more—than yours, premiums aren’t one-size-fits-all. A few key details about your bike, how you use it, and the coverage you choose can all impact the final amount you pay.
Here’s how it works:
1. Age and Model of the Bike
Newer bikes or high-end models usually cost more to insure since repairs or replacements are expensive. On the other hand, older bikes often have lower premiums because their value has gone down over time.
2. Location of Registration
Where you register your bike matters; if you live in a busy city or accident-prone zone, your premium might be slightly higher. Bikes registered in smaller towns generally attract lower premiums due to less traffic and lower risk.
3. Engine Capacity
The bigger the engine, the higher the third-party premium. Bikes with higher cc are considered more powerful and riskier on the road. IRDAI standardises these rates, so they’re the same across all insurers.
4. Rider’s Age and History
While your age doesn’t always affect the premium directly, your riding and claim history do. If you’ve had fewer claims or no claims in the past, you’re more likely to get better renewal deals and retain your No Claim Bonus.
5. Coverage Type (Comprehensive or Third-Party)
If you go for third-party bike insurance, your premium stays low, but the coverage is basic. Comprehensive plans offer much more protection (like theft or own damage), so they cost a bit more but are often worth it.
6. Add-On Covers Selected
Add-ons like Engine Protection or Roadside Assistance give you extra peace of mind, but they also increase your premium slightly. Choose only the ones you actually need, based on how and where you ride.
7. Security Features on the Bike
Installing an ARAI-approved anti-theft device can help reduce your premium. It lowers the risk of your bike being stolen, and insurers like TATA AIG offer a small discount for it.
8. No Claim Bonus (NCB)
The longer you go without filing a claim, the bigger the reward. With five straight claim-free years, you can get up to 50% off your own damage premium at renewal. That’s a big saving just for riding safely!
Conclusion
Your bike insurance premium isn’t just a random number; it’s carefully calculated based on several factors. From the type of bike you own to the way you ride and the coverage you choose, each detail plays a role in deciding how much you pay. Understanding these factors can help you make smarter choices and possibly even lower your premium over time.
