Factors That Impact Your Bike Insurance Premium
Published On Dec 07, 2021
Aside from being needed by law, purchasing two-wheeler insurance provides a slew of advantages. The most important of them is covered in the case of an accident or other unforeseen occurrence involving your prized two-wheeler.
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The premium for motorbike insurance is determined by a number of criteria. For the purpose of calculating the premium for your bike insurance policy, the insurance company looks at a variety of criteria to anticipate risk. As a result, you should be aware of the factors that impact the premium of your insurance policy in order to comprehend why your policy charges a certain amount.
Factors Affecting Two-Wheeler Insurance Premium
The premium for motorbike insurance is determined by a number of criteria. For the purpose of calculating the premium for your bike insurance policy, the insurance company looks at a variety of criteria to anticipate risk. As a result, you should be aware of the factors that impact the premium of your insurance policy in order to comprehend why your policy charges a certain amount. The following is a list of factors that influence the cost of a bike insurance policy:
Model and Make
It is true that the make and model of a bike have an impact on its price. And, because insurance is acquired to protect the value of the bike, the manufacture and model of the bike are the obvious elements that influence the bike insurance rate. If you possess a low-cost bike, your insurance rate will be cheaper as well. However, if you own a high-priced sportbike, you will have to pay a greater premium.
The Bike’s Age
When calculating the coverage premium, the age of the bike is also taken into account. This is why, in order to give policy rates, every insurance portal wants you to input the age of your bike when obtaining a bike insurance policy.
Declared Value Assured (IDV)
The bicycle The current market value is referred to as the Insured Declared Value. The IDV of a bike is calculated every year since the value of the bike decreases over time due to depreciation. Because the bike insurance provider is only obligated to pay compensation up to the value of the bike, the IDV is factored into the premium calculation for a bike insurance plan.
The Capacity of the Engine
The engine capacity of the bike is one of the most frequent and crucial criteria that impacts the price of bike insurance premiums. You will be paid a lower premium if your motorcycle has an engine capacity of 75 ccs or less. If your bike is 350 cc, on the other hand, you will have to pay a larger cost for your bike insurance coverage.
Devices to Prevent Theft
Many insurance firms provide discounts for installing security gadgets that have been certified by the Automotive Research Association of India (ARAI). It implies that if your bike is fitted with recognized safety equipment, your bike insurance rate will be lower since modern technologies minimize the chance of bike theft and loss, reducing insurance companies' duty to provide compensation.
Bonus with no Claim (NCB)
The NCB is delivered in the form of a reduction in the next policy year's premium. With consecutive claim-free years and safe driving, you may accrue this advantage up to 50%. As a result, the insurance premium is impacted since you will have to pay it after the NCB discount is deducted.
A deductible is a set amount that policyholders agree to pay in the event of a claim. This is another important aspect that influences the cost of your bike insurance coverage. With the addition of deductibles to bike insurance policies, policyholders will be responsible for a lesser portion of the claim, while the insurance company will cover the balance. As a result, choosing a lesser deductible will result in a higher premium, and vice versa.
The above-mentioned elements should be kept in mind while selecting a motorbike insurance policy. With an understanding of these criteria, you can quickly calculate the correct premium for your motorcycle. It will also assist you in calculating the premium using a free calculator. After that, all you have to do is evaluate several policy quotes and choose the best one. It will aid you in keeping your bike safe by providing you with a low-cost insurance plan.
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.