Factors Affecting Two Wheeler Insurance Premium

A variety of factors influence the cost of motorcycle insurance. To determine the rate for your bike insurance policy, the insurance company considers a number of factors in order to predict risk. As a consequence, in order to understand why your insurance policy charges a given price, you need to be aware of the elements that influence the premium.

Two-Wheeler Insurance Premiums: Factors to Consider

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

The age of a bike is also taken into consideration while calculating the coverage premium. This is why, when purchasing a bike insurance plan, every insurance portal requires you to enter the age of your bike in order to provide policy rates. A new bike has a higher market worth than an old bike, hence the former will have a larger premium, while the latter will have a lesser premium.

• Declared Value (Insured) (IDV)

The current market value of the bike is represented by the Insured Declared Value. The IDV of a motorcycle is calculated once a year since the value of the motorcycle decreases over time owing to depreciation. Because the bike insurance provider is only responsible for paying compensation up to the value of the bike, the IDV is factored into the premium calculation.

•  Capacity of the Engine

One of the most common and important factors that influences the prices of bike insurance premiums is the engine capacity of the bike. The cubic capacity of the engine is used to calculate its size (cc). You will be paid a lower premium if your motorcycle has an engine capacity of 75 cc 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 Claims (NCB)

The No Claim Bonus is a reward given by insurers to policyholders who do not make a claim during the policy year. The NCB is offered in the form of a discount on the following policy year's premium. With sustained claim-free years and responsible driving, you may accrue this advantage up to 50%. As a result, the insurance premium will be altered since you will have to pay it after the NCB discount is deducted.

Take Away

The above-mentioned elements should be kept in mind while selecting motorbike insurance coverage. You can simply calculate the correct premium for your bike if you are aware of these aspects. It also comes with a free calculator to assist you to figure out the premium. After that, all you have to do is evaluate several policy quotes and pick the one that best fits your needs. It will help you keep your bike safe by providing you with a low-cost insurance policy.

Also read - Why Do You Need A Bike Insurance Policy?

How To Calculate Two Wheeler Insurance Premium In India?

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.