Key Factors That Affect the Cost of Two-Wheeler Insurance Policy
Whether you live in a metro city or a town, you will notice a significant number of two-wheelers in every location. It is because they are convenient, affordable than other vehicles, easy to park, and smooth on roads. But did you know not all bike owners pay the same insurance premium for their vehicles? Not even people who have the same bike model and type. It is because the two-wheeler insurance premium depends on various factors
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So if you’re planning to invest in two-wheeler insurance online, ensure you first acquaint yourself with the various factors influencing your premium value. To make it easier, we’ve shared below all the essential factors that affect premium rates. Let’s quickly check them to gain clarity.
Model & Make of the Bike
People invest in vehicle insurance to secure its value. It is why you will notice high-end bikes have higher insurance premiums and vice-versa. So if you have a bike from Harley-Davidson, you will naturally attract a higher premium than people owning Hero HF 100 or Bajaj CT 100. Premium bikes use expensive materials, so even slight repair will translate to higher repair expenses. It is why insurers always pay attention to the model and make of the bike before finalising the premium.
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Bike’s Insured Declared Value (IDV)
A bike’s IDV refers to the vehicle’s current market price. Since insurers are liable to pay compensation up to the current market price, they always consider IDV before deciding on the premium. A bike is a tangible asset that depreciates in value every year. So IDV is calculated annually by deducting the depreciated value from the original vehicle value. Higher IDV means higher premiums and vice-versa.
People with existing two-wheeler insurance can enjoy discounted or reduced premiums in the future years if they don’t file claims for consecutive two to three years. The eligibility criteria to get a no-claim bonus can differ for different insurers, so always check the clause shared by your insurer. You should also check the percentage of discount you can get on your future premiums in the form of a no-claim bonus.
Number of Add-Ons You Plan to Purchase
Not every standard bike insurance plan may offer the coverage type you want. The best way to practically ensure you’re paying a reasonable premium for the coverage you need is by investing in add-ons you really need. If you feel the coverage is insufficient, you can invest in add-ons to enhance the coverage. Every add-on comes at an additional price, so the premium will keep increasing with the number of add-ons you include in your standard insurance plan.
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You can take the help of a two-wheeler insurance premium calculator to determine the estimated premium cost, including the add-ons of your choice. It will help you compare multiple policies simultaneously and help you pick the best option.
Modifications Done on the Bike
Bike owners generally modify their vehicles to improve their performance and aesthetics. But such modifications don’t come cheap. And if such modifications get damaged in a road accident, insurers may have to pay hefty compensation when a claim is filed. It is one reason why many insurers charge comparatively higher premiums on bikes with expensive modifications.
Consistent Gap in Policy Renewals
If you keep forgetting to renew your bike policy every year on time, you may attract a significantly higher premium rate than other bike owners. While insurers give some grace period to renew the policy, failing to renew it on time consistently puts you in the bad books of insurers. If you want to keep your bike insurance premium at reasonable levels, avoid missing any policy renewals.
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Installation of Anti-Theft Devices
Although installing anti-theft devices don’t directly influence the bike insurance premium, they help depict a positive picture of the bike owner. Install anti-theft devices in your bike before applying for two-wheeler insurance. It will make the insurer feel you’re concerned about your bike’s safety, which can indirectly influence your premium rate.
Get the Best Two-wheeler Coverage at a Competitive Premium
You can treat bike insurance as a mandatory investment you cannot escape. Bike owners have to invest in two-wheeler insurance; else, they can attract hefty penalties and fines if found riding an uninsured vehicle. If you want to get your initial investment’s worth, you can pick an insurance plan that comes at an affordable premium and offers standard coverage.
If you want the best coverage, you will have to shell out extra for premium payments. But if you factor in the points discussed above, you can get insurance at a competitive premium without adjusting the coverage.
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