Features/ Blogs/ How to Save on Car and Bike Insurance During Renewal: Smart Tips for 2025

How to Save on Car and Bike Insurance During Renewal: Smart Tips for 2025

Vehicle owners in India end up spending a significant amount each year to keep their bikes and cars insured. But the good news is that bike or car insurance renewal does not have to cost a fortune. By taking the proper steps and making sure to consider your options carefully, you can reduce your premium while still ensuring you have the coverage you require. This 2025 guide includes practical advice to help you save money at renewal.

Review and Compare Policies

A careful comparison of multiple insurers before renewing can lead to better value.

What to review

  • Total premium amount

  • What is included and excluded from coverage

  • Claim settlement performance

  • Extra charges for add-ons

Choose Digital and Paperless Options

Many insurers now offer discounts for going digital.

How to reduce costs

  • Renew your car or bike insurance policy through the official website or app

  • Submit documents electronically

  • Look for digital exclusive renewal offers

  • Avoid unnecessary agent commissions

Adjust the Voluntary Deductible

A voluntary deductible is the portion you agree to pay during a claim. Selecting a higher deductible usually reduces your premium.

Deductible Amount (in Rs.)

Possible Premium Reduction

1,000

5 to 10 per cent

2,000

10 to 15 per cent

5,000

20 to 25 per cent

Only choose this option if you are comfortable covering part of the cost in case of an accident.

Make Use of No Claim Bonus

A no-claim bonus is a reward for not raising a claim in the previous policy year. It gives a direct discount on the renewal premium.

Claim Free Years

Discount on Premium

1

20 percent

2

25 percent

3

35 percent

4

45 percent

5 or more

50 percent

Do not forget to transfer your no-claim bonus if you are switching to a new insurer.

Remove Unnecessary Add-ons

Add-ons can increase the cost of your policy. Only renew the ones that match your actual usage.

Add-on Cover

When It May Not Be Needed

Zero Depreciation

The vehicle is more than five years old

Engine Protection

You do not live in a flood-affected area

Roadside Assistance

You drive mainly in urban zones

Return to Invoice

The car is older, or the resale value is low

Removing unused add-ons can reduce the premium without affecting the core policy.

Adjust the Insured Declared Value

The insured declared value affects both the premium and the maximum payout. It is important to set it correctly.

Vehicle Age

Suggested IDV Range

0 to 2 years

95 to 100 per cent of the market value

3 to 5 years

80 to 90 per cent of the resale value

Over 5 years

70 to 80 per cent based on condition

Lowering IDV reduces the premium but also reduces the claim payout.

Consider Usage-Based Cover

For vehicle owners who do not use their car or bike daily, usage-based insurance is a cost-saving option.

Yearly Usage

Suitable Policy Type

Less than 5,000 km

Pay-as-you-drive policy

Over 10,000 km

Standard comprehensive plan

Rare or seasonal use

Third-party only cover

Choose the policy type that suits your driving pattern for better value.

Maintain a Clean Driving Record

Your driving habit has a direct impact on your risk profile. Having a clean record might also result in better premium offers during renewal.

Here’s how to stay in good standing

  • Follow all traffic rules

  • Avoid speeding and fines

  • Have a valid licence and PUC

  • Avoid accidents and rash driving

Avoid Raising Small Claims

Using your insurance for minor repairs can cost you more later by reducing your no-claim bonus.

Repair Cost Estimate (in Rs.)

Best Action

Below 2,000

Pay out of pocket

2,000 to 5,000

Consider the NCB impact

Above 5,000

Raise a claim if needed

Holding back from minor claims helps protect long-term discounts.

Renew Early to Avoid Extra Costs

You must renew your policy on time. A break in coverage can result in lost benefits and possible penalties.

Timely renewal tips

  • Create a 30-day reminder before the end of service

  • Keep both digital and paper copies ready

  • Renew at least 15 days earlier

  • Avoid post-expiry inspections and charges

Conclusion

You have to get a little smart to bring down your vehicle insurance renewal costs. Review your existing plan carefully and make the necessary adjustments to make it more economical. But don’t compromise on the amount of coverage you want. 

 

TopGear Magazine July 2025