To protect your bike from possible perils, buying an online bike insurance can be the best decision. It is like buying a promise, according to which the company which is providing the insurance will take care of expenses and will stand right beside you under all circumstances. In addition to availing various benefits that an insurance policy provides, people also look for ways to save money. For a layman, it becomes even more difficult to claim the maximum tax saving. The tax saving strategy can be a shot in the right direction if one invests in bike insurance online. It not only helps in making the insurance portfolio stronger, but also helps avail the advantage of tax savings. Bike insurance premiums are deductible and come with a tax benefit.
How to save tax in bike insurance online?
People work day and night to save money and secure their future. But how can the future be secure when one has more spending. In such cases, one must purchase bike insurance online, in which case one pays lower premium and also avails tax benefits. In order to avail tax benefits on the insurance premiums paid for protecting your bike, the bike should be used for business purposes. There is no maximum limit on the insurance premium amount that can be claimed as an expense. However, if the bike is used for your personal purpose, the insurance premium cannot be treated as an expense. If the bike is sometimes used for a personal purpose and for business at other times, then a deduction can be allowed for the premium for the duration where it has been used for business.
Here are few other ways you can save by purchasing bike insurance online:
Choose your bike wisely
To save on bike insurance the very first thing one need to do is to choose the bike wisely. If one chooses a rare or exotic model with a powerful engine, then in all probably, one needs to pay a higher premium. On the other hand, if one chooses an older model which is smaller in engine capacity or cheaper, then one is more likely to get competitive rates from different insurance companies as repair or replacement cost is lower in such cases.
Don’t choose short tenure for premiums
The second thing that one must keep in mind in order to save is to opt for a longer policy tenure. Also, choose to pay annually as the premium amount will be less with this option. One should also keep in mind not to claim for small problems such as scratches and dents, as one will lose the no claim bonus for that particular year. Rather pay from your own pocket for the smaller problems and save on no claim bonus and taxes instead.
Choose the same company for multiple insurance policies
Are you planning to buy more than one policy just to obtain some rebate in your premium? If yes, then it’s always advisable to opt for the same company to buy multiple insurance policies. This is because being loyal to a company converts you into an asset for the company. As a result, they will offer interesting discounts and offers on the insurance purchased. However, if you plan to buy insurance policies from different companies, then you won’t avail a huge discount, as you would only be a one-time customer for them.
Tax saving benefits of bike insurance online
A bike insurance policy can help in tax saving because the government has mentioned that a policyholder will enjoy tax benefit under section 88 of the Income Tax Act, 1961.. If you have income from business and profession and if the bike scooter is used wholly and exclusively for that business, the insurance premium paid can be claimed as business expenditure.
According to bike insurance policies, you can achieve the financial security of your self as well as others, by investing in a good bike insurance plan. You can even invest in multiple policies and can avail the benefit of greater tax reduction.
Who wouldn’t want to avail the benefit of tax through bike insurance online? One just needs to be smart enough to choose a plan according to one’s needs and requirements. Take advantage of the online technology and increase your savings.