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Factors That Determine Bike Insurance Policy In India

Published On Feb 10, 2022, Updated On Feb 12, 2022

The cost of bike insurance is determined by a number of factors. Continue reading to learn about factors that affect the cost of two-wheeler insurance.

The cost of motorcycle insurance is determined by a variety of factors. When determining the premium for your bike insurance policy, the insurance provider considers a number of indicators to anticipate risk. You must be aware of the elements that may influence the cost of your insurance coverage in order to understand why your plan costs a given amount.

Factors That Determine Bike Insurance Policy In India

Factors to Consider Bike Insurance Policy in India

The following is a list of factors that influence the cost of bike insurance:

  • Year and Model

It's true that a bike's price is influenced by its manufacturer and model. Because insurance is purchased to preserve the value of the bike, the bike's make and model are the most evident factors that determine the insurance rate. Your insurance rate will be lower if you have a low-cost bicycle. If you own a high-end sportbike, though, you will have to pay a higher premium.

  • The Age of the Bike

When calculating the cost of insurance, the age of a bike is also taken into account. This is why, when acquiring a bike insurance policy, every insurance portal requires you to enter the model year of your bike in order to get policy pricing. A new bike has a higher market worth than an old bike, hence the former will command a larger premium while the latter will command a lesser premium.

  • (Insured) Declared Value (IDV)

The Insured Declared Value represents the bike's current market value. Because the value of a motorcycle decreases over time due to depreciation, the IDV is calculated once a year. The IDV is considered into the premium calculation since the bike insurance provider is only responsible for providing compensation up to the value of the bike.

  • The Engine's Power

The engine capacity of the bike is one of the most common and crucial criteria that influence bike insurance costs. An engine's cubic capacity influences its size (cc). If your motorbike has a capacity of 75cc or less, you will be charged a cheaper premium. However, if your bike has a displacement of 350 cubic centimeters, your bike insurance coverage will be more expensive.

  • Theft-Prevention Devices

Many insurance companies may give you a discount if you install security gadgets that have been certified by the Automotive Research Association of India (ARAI). It implies that if your bike has authorized safety equipment, your bike insurance rate will be lower since modern technology minimizes the chance of bike theft and loss, reducing insurance companies' duty to pay you.

  • Bonuses that aren't Reimbursable (NCB)

A bonus offered by insurers to policyholders who do not submit a claim during the policy year is known as the No Claim Bonus. The NCB is given in the form of a discount on the premium for the next policy year. You may earn up to 50% of this award if you keep your claim-free years and drive responsibly. As a result, the insurance premium will be altered since it will have to be paid after the NCB reduction is applied.

Take Away

When choosing motorcycle insurance coverage, keep the aforementioned factors in mind. If you are aware of these factors, you can easily determine the suitable premium for your bike. It also includes a free calculator to help you calculate the premium. Then all you have to do is compare various policy quotations and choose the one that best meets your requirements. It will provide you with low-cost insurance coverage to assist you to keep your bike secure.

Also read - Tips To Maintain Your Electric Two-Wheeler

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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