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Influencing Factors Of Two Wheeler Insurance Premium

Published On Feb 24, 2022

A list of elements that determine the cost of bike insurance coverage in India is shown below.

The cost of motorbike insurance is influenced by a number of factors. In order to estimate risk, the insurance company examines a variety of elements when determining the premium for your bike insurance policy. As a result, you must be aware of the factors that impact the premium in order to comprehend why your insurance policy costs a certain price.

Influencing Factors Of Two Wheeler Insurance Premium

Insurance Premiums for Two-Wheelers: Factors to Consider

A list of elements that determine the cost of a bike insurance coverage is as follows:

  • Make and Model

It's true that a bike's manufacturer and model have an influence on its pricing. And, because insurance is purchased to safeguard the worth of the bike, the bike's make and model are the most evident factors that impact the insurance rate. If you own an inexpensive bike, your insurance premium will be lower as well. If you possess a high-end sportbike, though, you will have to pay a higher premium.

  • The Age of the Bike

When calculating the coverage premium, the age of the bike is also taken into account. This is why, in order to give policy pricing, every insurance portal wants you to input the age of your bike when obtaining a bike insurance plan. Because a new bike has a higher market value than an old bike, the former will command a higher premium, while the latter will command a lower premium.

  • (Insured) Declared Value (IDV)

The Insured Declared Value represents the bike's current market value. Because the value of a motorbike reduces over time due to depreciation, the IDV is computed 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 Capacity

The engine capacity of the bike is one of the most frequent and crucial criteria that impacts the price of bike insurance premiums. The engine's cubic capacity is used to determine its size (cc). If your motorbike has a capacity of 75 ccs or less, you will be charged a cheaper rate. If your bike has a displacement of 350 ccs, however, you will have to pay a higher premium for bike insurance.

  • Theft-Prevention Devices

Many insurance companies provide discounts for installing security devices that have been approved by India's Automotive Research Association (ARAI). It means that if your bike is equipped with approved safety equipment, your bike insurance premium will be cheaper since contemporary technologies reduce the risk of bike theft and loss, decreasing the responsibility of insurance companies to compensate you.

  • Bonus for Making No Claims (NCB)

Insurers compensate policyholders who do not file a claim throughout the insurance year with a No Claim Bonus. The NCB is given in the form of a discount on the premium for the next policy year. This benefit can be increased by up to 50% if you maintain a claim-free record and drive responsibly. As a result, your insurance premium will change since you will have to pay it after the NCB discount has been taken away.

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 - Add-On Covers Suitable For Your Sports Bike 

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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