When it comes to insurance, it is important to remember not to raise claims for small damages. Nonetheless, most people end up raising claims even for the smallest repairs because they believe that is the primary purpose of purchasing insurance. However, this is counterintuitive as raising too many claims affects your premium directly.
It is advisable not to raise claims for small repairs that can be handled by you, here’s why.
Avoid small claims to reduce your premium rates
There are two types of insurance policies available. The basic third party insurance for bike is mandatory as per the law. The other one offers extensive coverage, and hence, it is called a comprehensive policy. All significant damages such as those caused due to floods, earthquakes, theft, etc., are covered under a comprehensive policy. The coverage looks quite attractive and so people assume that raising a claim for insignificant damage is a wise idea. Little do they know that this is not how it works!
There is a term under two-wheeler insurance you should be aware of, i.e. no-claim bonus (NCB). It is a concession that you receive on your bike insurance premium for every claim-free year. It is cumulative and can go up to 50%.
Insurers offer NCB as a reward to policyholders for not raising a claim. Thus, if you raise a claim for minor damages, your NCB cycle is reset.
Due to this, you cannot avail the benefits that you had previously accrued and you would have to bear the full cost of your premium rather than availing the certain percentage of NCB concession.
Eventually, raising more two claims for your two wheeler insurance policy results in an increase in premium costs, thus causing you more financial loss than would go into repairing minor damages. You do not want this to be the scenario in your case; so only raise an insurance claim for significant damages to self or the third-party or theft.
Talking about saving money, you can save quite a bit just by switching the source of buying insurance, i.e. from the traditional offline method to the modern online method.
Why should you buy two-wheeler insurance online?
Buying a two-wheeler insurance policy online would be the best decision you make. The reason is that with an online purchase, you can enjoy additional concessions as buying online is much cheaper than offline because you have the provision to compare policies and choose the one that meets your needs at an affordable premium rate.
Another reason to purchase your two-wheeler insurance policy online is that you get to compare various policies and make an informed choice. You do not have the time to do the same offline as it could get quite time-consuming. On the contrary, when you purchase two wheeler insurance online, you can look into all the features of the policy and select the ones that you require.