Bike Insurance Renewal vs. Buying New: Which Is the Better Option?

By tanmayee das Updated: Feb 20, 2025, 19:53 IST

When your bike insurance is up for renewal, you may wonder whether it's better to renew your existing policy or buy a new one. Both options offer important benefits, but choosing the right one depends on your needs. Renewal can save you time and allow you to keep your No Claim Bonus (NCB), while buying a new policy may give you access to better coverage or lower premiums. Understanding these key differences can help you make an informed decision that best suits your bike insurance requirements.

Understanding Bike Insurance Renewal vs. Buying a New Policy

Insurance is essential for two-wheelers, providing financial protection against damages, theft, and liabilities. While both renewing and purchasing a new policy offer coverage, their implications differ.

What Is Bike Insurance Renewal?

Bike insurance renewal refers to extending your existing policy with the same insurance provider before it expires. Renewing on time ensures continued coverage without any break, keeping you legally compliant while enjoying uninterrupted benefits.

What Is Buying a New Bike Insurance Policy?

Buying bike insurance online afresh means purchasing a brand-new policy from either the same insurer or a different one. It allows you to explore better options, compare premiums, and choose a plan that aligns with your requirements.

Key Differences: Renewal vs. Buying a New Policy

Factors	Bike Insurance Renewal	Buying a New Policy
Process	Is fast and easy	Requires research and documentation
Premium Amount	May increase due to price hikes, changes in IDV, or new regulations, even with NCB	May change based on insurer and coverage
No Claim Bonus (NCB)	Retained when renewed on time	Can be transferred to a new policy with proper documentation
Policy Benefits	Continuation of existing features and add-ons	Customisable coverage based on needs
Waiting Period	No waiting period if renewed before the expiry	Policies are typically activated instantly after payment
Paperwork	Minimal, as details are already with the insurer	Requires submission of documents again

Benefits of Bike Insurance Renewal

Opting for bike insurance renewal comes with several advantages:

Uninterrupted Coverage

Timely renewal ensures that your insurance remains active, keeping you covered against financial liabilities and damages.

Retention of No Claim Bonus (NCB)

No Claim Bonus (NCB) rewards you with online savings for each claim-free year on your bike insurance. Renewing your policy on time ensures you keep your accumulated NCB, potentially reducing your premium by up to 50% over five years. While some insurers may offer a grace period, renewing before expiry is the safest way to guarantee NCB retention. Many companies, like Bajaj Allianz General Insurance Company, offer plans that specifically allow you to keep your NCB when you renew.

Simple Procedure

Renewing a policy takes only a few minutes as the insurer already has your details. Simply verify your information, choose add-ons (if needed), and proceed with payment.

Legal Compliance

Having an active insurance policy is mandatory under Indian law. A lapse in renewal could result in penalties and legal complications.

Benefits of Buying a New Bike Insurance Online

In some cases, purchasing a new bike insurance online policy may be a smarter choice.

Better Coverage Options

Switching insurers allows you to explore competitive plans, including enhanced features and better claim settlement ratios.

Flexible Add-On Covers

A new policy lets you customise add-ons such as Zero Depreciation Cover, Engine Protect Cover, and Roadside Assistance, tailoring the policy to your specific needs.

Competitive Premiums

Comparing different plans before purchasing helps you find cost-effective coverage with maximum benefits.

Fresh Policy Terms

If dissatisfied with your previous insurer’s service, you can choose a provider that offers better claim processes and customer support.

When Should You Opt for Bike Insurance Renewal?

Renewing your existing policy is ideal in the following situations:

You are happy with your current insurer’s services and claim settlement process.
You want to retain your No Claim Bonus (NCB) and reduce premium costs.
You have add-ons that suit your needs and do not require changes.
You prefer a hassle-free renewal process without additional documentation.

When Should You Buy a New Bike Insurance Policy?

Purchasing a fresh policy is advisable when:

You want better coverage options at a competitive price.
Your existing insurer’s claim settlement process is unsatisfactory.
You need additional riders and customisations that your current policy does not offer.
Your policy has already expired, and renewal is still an option, although it may involve losing NCB and possibly needing a vehicle inspection.

How to Renew Bike Insurance Online?

The process of bike insurance renewal is simple:

Visit the insurer’s official website.
Enter your existing policy details and bike information.
Choose the coverage and add-ons (if required).
Review the premium and make an online payment.
Receive your renewed policy instantly via email.

Tip: Renew your policy before expiry to avoid a coverage lapse and potential penalties.

How to Buy a New Bike Insurance Online?

If opting for a new policy, follow these steps:

Compare various insurance providers online.
Enter your bike details, including registration number, model, and year.
Choose between third-party insurance or comprehensive coverage.
Select suitable add-ons for enhanced protection.
Check the premium using a bike insurance online calculator.
Proceed with payment and receive the policy instantly.

*Standard T&C Apply

**Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

***Claims are subject to terms and conditions set forth under the motor insurance policy.