How Relocation Affects Your Bike Insurance Premium?
Published On May 18, 2021, Updated On Jul 27, 2021
Read this article to understand how relocating your house affects your bike insurance premium.
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Having a bike insurance policy is not just mandatory but a necessity. Everyone prefers to have an insurance that provides maximum coverage with an affordable premium. Among many factors that affect the cost of the premium, your location is an important determiner. This article will help you to understand how relocation affects your bike insurance premium.
How Does Relocating Change Your Bike Insurance Premium?
Your bike insurance premium is calculated mainly on the basis of the level of risk involved with your bike. Relocation can change the cost of your bike insurance premium depending on the change in level of risk. Your bike insurance premium may increase or decrease depending on your new location. The following are a few location-based factors that affect the cost of your bike insurance premium-
Traffic Patterns In The Location
The traffic pattern near your area determines the level of risk that you put yourself and your bike in. The number of intersections and vehicles that travel on the road will decide the level of traffic. More traffic implies that there would be a greater risk of getting into accidents. So, relocating to an urban or highly populated area will increase your bike insurance premium while moving to a locality with minimal traffic will reduce the cost of your premium.
Change In The Distance To Workplace
If there is an increase in the distance from your workplace to residence, there will be an increase in your bike insurance premium amount. This is mainly because an increased time on the road will make you more vulnerable to accidents. Moving to an area nearby your workplace will reduce the cost of your bike insurance premium.
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The Risk Of Theft
If your locality is known to have a greater frequency of bike theft claims, the bike insurance company may increase the cost of your bike insurance premium owing to the increased risk of theft. But, if you happen to install any security modifications in your bike, you are very likely to receive a discount on your insurance price.
Provincial Insurance Regulation
Regulation of bike insurance is done at a provincial level. This means that each province has different rules regarding insurance premium rates. Every insurer must make sure to have its rates approved by the regulatory body of the province it serves. If the province is heavily regulated, you can expect your bike insurance premium rates to be stiff. Moving to a province with different rules will inevitably change your bike insurance premium cost.
How To Get An Affordable Bike Insurance Premium?
The following are a few simple measures that you can adopt to reduce the cost of your bike insurance premium-
- Fitting your bike with security modifications such as an alarm, anti-theft security rope, etc will help you reduce your premium cost as the insurance company will perceive it to be a tool that reduces the risk for the theft of your bike.
- Installing security lights around your driveway to park your bike safely will reduce the risk of having parking damages.
- Use public transport if you happen to be travelling long distances to your workplace or elsewhere. This will reduce the risk of being involved in an accident and also encourage you to go for a claim-free year.
- Not claiming your insurance for minor damages or scratches for over a year will fetch you No Claim Bonus which is a discount on your bike insurance premium.
Also Read:- Two Wheeler Insurance Transfer Explained
Having insurance is the key to saving yourself from heavy repair expenses and living a financially secure life. Make sure that you update your bike insurance provider about the change in your residential address in order to keep yourself covered with a policy that suits your needs as not informing your insurance providers about relocating will lead to rejection of claim or the claim amount. Happy riding!
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.