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.
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
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
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.
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.
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.
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.
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.
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
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.
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
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.
