Best Time to Renew Bike Insurance in India

Renewing your bike insurance policy at the right time is just as important as having insurance in the first place. Most bike owners forget their renewal date or leave it for the last minute, leading to unnecessary stress, fines, or even insurance loss. 

But when should you renew your bike insurance? How can you renew your bike insurance with less stress and some savings? In this article, we will discuss the best time to renew bike insurance in India, the factors that affect renewal, and the tips that will assist you in availing the best offer. 

Whether you're a regular commuter, a new bike owner, or someone else, knowing these key aspects will prevent your policy from lapsing, fetch better premiums, and provide your vehicle with continuous coverage. So, let's begin.

You should renew your bike insurance on time to continue the coverage and avoid legal and financial complications.

Annual Policies

Renew the annual one-year policies 15 to 30 days before the end date. This will allow sufficient time to compare plans, make the correct decisions, and ensure continuous coverage.

Long-Term Policies

If you've selected a multi-year policy (a 3-year term, for instance), the renewal should be at least 30 days. Renewing early provides continuous protection and the opportunity to evaluate your coverage requirements.

Allowing your bike insurance to lapse can expose you to legal repercussions and financial losses. If this happens, you must act promptly to reinstate the coverage. Here is what you should do:

Renewal During the Grace Period

Some insurers offer 90 days from the end of your policy. You can renew the policy within this period without losing the No Claim Bonus in bike insurance. However, your vehicle is not covered for this period, and any accident will be uninsured. You should renew the policy at the earliest for continuous coverage.

Renewal After the Grace Period

If the grace period is over, your insurance is lapsed, and you must purchase a new policy. The procedure can also involve checking the vehicle for fitness, as previous NCB can be lost, leading to higher premiums. Therefore, it is necessary to address the lapse as soon as possible.

Explore Online Renewal Options

Some insurers also allow online renewal of lapsed policies, which is convenient and requires less paperwork. You can log on to the insurer's official site, fill out your vehicle and policy details, compare plans, and pay. Online renewals also come with exclusive offers and fast processing, which is why most policyholders prefer.

Consider Long-Term Policies

To prevent future lapses, opt for long-term two-wheeler insurance for three or five years. Long-term insurance reduces the frequency of renewals, stabilises the rate of premiums, and can be less expensive than yearly insurance. It is the most effective method of maintaining continuous coverage and preventing yearly renewals.

The best time to renew your bike insurance is 15 to 30 days before expiration. This way, you will avoid gaps in coverage, keep the benefit of your No Claim Bonus (NCB), and avoid possible consequences of riding without valid insurance. 

This gives you time to compare different policies, see if you have better coverage, and buy without last-minute pressure. Most insurance companies will send several reminders for a policy renewal, but it is always prudent to set up reminders so you do not miss the deadline. 

While some bike insurers offer a grace period of coverage between 30 and 90 days, this only keeps the insurance on your records and your bike is still not considered insured during this time frame. For future insurance lapses, you must consider a long-term policy to cycle over three to five years. This way, you would not have to worry about renewing your insurance and, in some cases, would have discounts.

If you are looking to renew your bike insurance policy with Digit for the first time, here are some benefits to look forward to:

Instant Claims Processing

Enjoy a seamless and swift claim process, from filing your claim and assessing your bike to receiving the claim.

Effortless Paperless Procedure

With Digit, do the complete process with your phone from choosing the type of insurance plan to filing and recieving the claim, completely paperless.

Self-Inspection Convenience

Simply upload images and videos of your vehicle for self-inspection, eliminating the need to wait for surveyors.

Round-the-Clock Customer Support

Receive dedicated support for your claims even on holidays, ensuring you always have assistance whenever you need it.

Extensive Cashless Garage Network

Choose from over 9,000+ cashless garages across India, conveniently located to suit your needs.

Allowing your bike insurance to lapse can result in various financial, legal, and procedural challenges. Below are the key consequences: 

Legal Penalties

Driving without valid bike insurance is an offence under the Motor Vehicles Act 1988 and is punishable by a fine of up to ₹2,000 by the magistrate with 3 months imprisonment if caught. A fine for repeated offences can be more than just the specified fine, with severe legal consequences.

Loss of No Claim Bonus (NCB)

With no renewal to your insurance policy within 90 days of expiry, you lose your No Claim Bonus (NCB). NCB can amount to 50% of your bike insurance value; it is a discount that lessens your premium costs. Without NCB, your bike insurance costs would increase for the next policy.

Financial Liability for Accidents

If you don't keep your policy current, your bike insurance can't help you with damages, medical fees, or third-party liability in the event of an accident. You are responsible for these costs and may face financial hardship.

Mandatory Vehicle Inspection

Renewing a lapsed policy requires an in-person bike inspection to assess the condition. An in-person inspection could take time, and if your bike is damaged, you would incur a higher expense for your insurance policy or not be granted a policy.

Higher Premiums on Renewal

If you let your insurance lapse and did not renew it until afterwards, the premium for a new policy can be higher. The loss of continuous coverage and discount benefits, such as an NCB discount, will be a factor in the cost of your insurance.

Legal Liability for Third-Party

If you are involved in an accident involving an injured third party or damaged property, you will be legally responsible for restitution for the costs of any claims against you. If you have not maintained an active policy, you will be personally liable for the costs, which could be financially devastating.

Rejection of Policy Renewal

Policy Insurance companies may refuse to renew an expired policy, especially if you wait longer than a reasonable period before renewing it. If insurance is refused, you must buy and insure a new policy, with fees and premiums substantially higher than before.

Loss of Add-On Benefits

If you have an expired insurance policy, you will usually lose additional benefits such as roadside assistance, zero depreciation cover, or engine protection add-ons when you renew your insurance coverage, or it may be offered at a higher price.

You must renew your bike insurance promptly so your coverage does not expire and you remain compliant. Here are some helpful tips for renewing your policy promptly:

Set Renewal Reminders

Mark down the date of your policy's expiration on a calendar. You can also set reminders on your phone, computer, or other device. You will have enough time to reevaluate and renew your policy if you receive an alert reminder 15-30 days before the date.

Opt for Long-Term Policies

Consider selecting a long-term bike insurance policy that could extend to three years. A long-term policy can mean fewer renewals, and you may simultaneously lock in a premium rate to protect yourself from yearly increases.

Maintain a No Claim Bonus (NCB)

You will qualify for a No Claim Bonus if you have never had a claim on your insurance record. An NCB is significant. Renewing your policy could allow you to save money with a discount on your premium. Make sure the NCB is added to your renewal premium calculation.

Review and Adjust Coverage

When renewing your policy, you should review all available coverage options. If you discover coverage under your current policy that you do not need, remove it or add additional coverage options to enhance your protection.

Make Comparisons

Use various online policy comparison sites to analyse each insurance company's inherent policy options. Policy comparison is a clever way to learn about coverage options and get competitive rates to get top value for your dollar.

Use Online Renewal Process

Insurance companies often give consumers access to much easier online renewal processing options. Renewing online also saves time and sometimes offers even more additional discounts or savings you wouldn't have otherwise.

Know Your Grace Period

It is always beneficial to know the details and ranges of a grace period; it generally runs around 30-90 days, depending upon the insurer. Ideally, you must renew your policy before the expiration date, but knowing if you're covered and can maintain benefits (like NCB) despite late payment is helpful.