Variables that impact bike insurance premium
Published On Dec 09, 2020, Updated On Feb 07, 2021
A variety of variables would be responsible for determining your bike insurance premium. Let’s read about some of the important ones.
There are a variety of factors which will impact the bike insurance premium that you would pay to your insurance company in order to procure an insurance policy for your bike. The insurance premium is calculated based on the risk exposure of the insurance company. Learn about all the different variables that will impact it and have an affect on the insurance premium, in order to understand why a specific policy has a given premium.
List of Variables Affecting Bike Insurance Premium
The following are some variables which will impact the premium that you would be charged on a bike insurance policy.
1. Make, Model, And Manufacturer Of The Bike
For a standard model, the premium would be low. As you move onto the higher end of bikes available on the market, or international manufacturers, the scope of coverage required would widen and the premium would increase to reflect this.
2. Age Of The Bike
The bike’s age and year of manufacture will impact the insurance premium. In general, the older the bike, the lower the premium, with the possible exception of vintage bikes. The IDV or Insured Declared Value has a direct impact on the insurance premium. IDV reflects the market rate of your bike and is the amount for which your bike is insured, and thus has a direct impact on the insurance premium. It depreciates over time.
3. Engine Capacity
Another important variable impacting insurance premium is engine capacity. A bike with low cubic capacity (cc) engine will have a lower premium whereas if your bike’s engine capacity is above 350cc you would have to pay a very high premium to insure it.
4. Anti Theft Measures
Anti-theft devices installed on the bike will reduce the risk of it being stolen and thus will reduce the risk associated with your bike overall. This will result in the insurance premium of your bike going down.
5. No Claim Bonus
No Claim Bonus is a reward discount given at the time of renewal if there have been no claims raised during the policy period. Thus, if you do not raise any claims during your policy tenure, you would be able to avail of this discount when renewing your policy and receive a reduction on your policy premium. The NCB discount is cumulative in nature and increases with every year that you do not raise any claim.
There are a variety of factors which will impact your insurance premium. These are some of the important variables to keep in mind when purchasing your bike insurance policy as they will affect the premium that you would have to pay.
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Disclaimer: This article is issued in 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.