When it comes to a bike insurance policy, the first thing that comes to one’s mind is the premium that has to be paid. The expense incurred towards premiums makes some people hesitate when it comes to investing in a solid insurance plan.
This is due to lack of clarity or understanding about how the premium works. There are quite a few factors that determine the premium amount of your bike insurance. With a better understanding of the factors that affect the premium, one can optimize the premium amount accordingly.
Follow our tips that will help you optimize the premium for your bike insurance policy.
Tips to Optimize the Bike Insurance Premium:
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The premium is the price you pay your insurer to avail and enjoy the benefits of policy coverage. It is calculated by taking some factors into consideration like your driving history, the geography of your bike, the age of the bike, usage of the bike, type of bike, etc. Here are some tips that will help you optimize the premium of your bike insurance.
Maintain a Good Record:
One of the best ways to reduce your insurance premiums significantly is to maintain a very good track record. You can build a good track record by taking care to always drive carefully, obey traffic rules and carry all the necessary documents while driving. Having an accident or penalty-free track record can fetch some really good discount on the premium amount in subsequent renewals.
Loyalty will Always be Rewarded:
If there is one thing that never goes unrewarded, that is loyalty. If you have been getting your insurance policy from the same company for a long period of time, you might get a discount on the premium amount. Further to this, when you have different insurance policies like home, health, motor, etc., all brought from the insurer, you can get a good deal on the premiums.
Set Higher Deductibles:
A deductible is an amount that is paid by the policyholder, in case of an accident claim. Basically, a deductible is an amount you pay out of your pocket, while the insurer takes care of the rest. The higher the deductible, the lower your premium and vice-versa.
Improve Your Credit Score:
Similar to when buying bank loans, insurers look into your credit score before sanctioning your policy. This is to understand your track record with previous loans if any. People with higher credit scores generally are rewarded with lesser premiums and vice-versa. It is considered a proxy indicator of your financial habits or prudence related to money matters.
Keep Your Options Open:
When we shop generally, we keep looking until we are thoroughly satisfied with what we have found. It is important to keep that in mind when it comes to buying insurance too. There are a lot of options available, so you can take your time to evaluate and compare them to arrive at the best one. By shopping around, you may find a deal that’s a lot better than the one you currently have.
