What are the factors affecting bike insurance renewal premium?
There are few factors which can affect your bike insurance renewal premium and each of them are discussed below:-
No claim bonus:
No claim bonus is the discount offered by the insurance companies for not making any claim in the previous year. This is an incentive from the insurance company to the customers not making any claims. The no claim bonus ranges from 0% to 50% and increases each claim free year. If there is claim in any year, then the no claim bonus will be reduced to zero and the cycle repeats. No claim bonus is calculated on the own damage section of the bike insurance as the third party premium is decided by the IRDA. Higher the no claim bonus, lower would be the premium paid by the customer. Hence, no claim bonus is the major factor which affects your bike insurance renewal premium.
NCB cannot be transferred in case of sale of bike, as the no claim bonus is given to the owner/driver of the bike as a reward for good driving behaviour. No claim bonus can be transferred from one insurance company to the other at the time of renewal. Bike insurance renewal premium can be decreased by accumulating higher no claim bonus.
Having a claim can increase the premium of your bike at the time of renewal. This happens due to two things; one is the no claim bonus would become zero thereby increasing the premium and the other is reduction in the discount. Few insurance companies offer fewer discounts for bikes having claim in the previous year while few other insurance companies offer same discount for bikes with and without discount.
Also the frequency of claims would be taken into consideration at the time of bike insurance renewal by the insurance companies. If there is more than 1 claim reported by the customer in a policy period, then the existing insurance company would not be willing to renew the bike insurance policy. Compare bike insurance online and get the bike insurance renewal quotes.
Transfer of ownership:
One of the important factors which affect the renewal premium is the transfer of ownership of the vehicle. If the vehicle is sold and there is a transfer of ownership then the renewal premium would be high or at par when compared to previous year. This is due to the fact that the NCB would not be transferred if the ownership is transferred. So the renewal quote will be calculated without the NCB, and the discounts would also differ if the no claim bonus is zero at the time of renewal.
How to save money on Bike insurance renewal online?
One of the most researched question on Google and most asked question would be how to reduce the bike insurance renewal premium. This is due to the thinking of people that they have spent hefty amount on the bike insurance premium and have not availed any claim, so there is no point in spending the same amount of premium at the time of renewal. This may be true from the customer’s point of view, but there are few things which need to be considered by the customer before deciding on the renewal premium to be paid.
- Accumulate NCB: No claim bonus is given to the insured customer for each claim free year and the bonus increases from 0% to 50% in 5 claim free years. Accumulating higher no claim bonus can reduce the premium to be paid by the customer as higher discount in own damage premium would be given by the insurance company for customers having higher NCB. There would be huge difference in premium for customers having nil NCB and customers having 50% NCB.
- Reduce IDV: Insured declared value or IDV can be reduced by the customer to reduce the overall premium to be paid. Lower IDV results in fewer premiums to be paid by the customer. But it is important to maintain a balance between the IDV and the premium to be paid. Too less IDV can reduce the amount of claim at the time of total loss or theft. Bike insurance renewal premium can be reduced by reducing the IDV to the lowest available value.
- Voluntary excess: Excess or deductible is the amount of claim to be borne by the insured customer at the time of claim settlement. This is the way of making the customer responsible at the time of claim settlement. Higher the deductible amount, higher would be the responsibility of the customer at the time of claim. Bike insurance renewal premium can be reduced by opting for higher voluntary excess. A small portion of liability at the time of claim settlement is transferred to the insured customer by opting for higher voluntary deductible or excess. Every bike insurance policy has compulsory excess of up to Rs.1000 per claim and the voluntary excess opted would be over and above the compulsory excess. For instance if the voluntary excess is opted as Rs.2500 and the compulsory excess is Rs.1000 then in case of claim where the claim amount is Rs.10000, a total of Rs.3500 would be deducted and remaining would be paid to the insured customer. The amount of Rs.3500 has to be borne by the customer in return for the reduction in premium.
- Riders as per necessity: Riders or add-ons should be purchased by the customer as per the necessity to reduce the premium to be paid at the time of bike insurance renewal. Customer should spend some time and do research before deciding on what kind of riders are suitable for the geography in which the customer operated the bike. Riders play an important role in deciding the renewal premium and therefore should be selected as per necessity.
For best bike insurance renewal quotes please visit Two Wheeler Bike Insurance and get the online renewal quotes from top bike insurance companies.