Ever pondered why certain bikes command higher insurance premiums than others? Well, the purpose of this post is to provide a response. The numerous factors that affect bike insurance premiums have previously been explored in earlier articles.
All owners of two-wheelers must have vehicle insurance. In the event of an accident, your insurance will shield you from any resulting financial obligations. Although third-party bike insurance is required, you can also get complete coverage that covers both third-party and own damages/injuries.
However, you should first comprehend how the price for bike insurance is determined and also how to claim insurance for bikes before you begin looking through insurance products online. Before giving you an insurance quote, an insurer will take the following into account:
To begin with, there are predetermined norms and requirements for motorcycles, which distinguish the amount of premium that they command. These elements determine the net value of a bike’s premium according to a two-wheeler insurance premium calculator.
Following are some of these parameters that are discussed:
- Age of the bike: The insurance premium you would have to pay is based on the age of your bike. The insured declared value (IDV), which is the entire amount insured an insurer pays the policyholder following total damage or loss, is higher for new bikes, explaining why. Older bikes, however, have a lower IDV because of their diminished worth. As a result, older bikes have relatively lower insurance premiums than new bikes. *
- Engine cubic capacity (cc): The engine’s cc affects the premium cost as well. The bike has more power if its engine has a higher cc. As a result, a greater cc vehicle typically commands a higher premium than a motorcycle with a lower cc. *
- Model: The bike’s model is a key element in deciding its premium. This is because expensive motorcycles have higher IDVs because they are more valuable than entry-level bikes. Therefore, the premiums for a high-end bike’s insurance coverage are more than those for smaller-sized models. *
- Location: Bikes used in high-risk (Zone A cities) and accident-prone areas are subject to higher premiums than those used in areas where accidents are less likely to be reported (Zone B cities such as rural areas). *
- Additional covers (Add-ons) – Extended protection is provided via add-on covers, which are tailored to the customer’s requirements. Use them judiciously because they add extra benefits but raise the cost of the premium. *
- Purchased insurance policy type – Depending on the level of coverage, various insurance plans have varying premiums. Bike’s third-party insurance and comprehensive policies have different premium costs because one only covers damage to a third party while the other provides a wider range of coverage. A full cover, however, gives protection from self-damage and commands a higher insurance cost. *
- No-claim bonus (NCB) – No-claim bonus is offered as a concession on the premium on the renewal of two-wheeler insurance if there were no claims made during the preceding policy period. The price of the premium is decreased by these concessions. *
- Use of the bike: Since they are covered by commercial vehicle insurance, motorcycles used for business activities like deliveries and courier services have different premium rates from bikes owned by the individual. *
These are some of the main elements that affect the cost of two-wheeler insurance. Utilise the online calculators available on the websites of insurance companies to calculate your bike insurance premium. Choose the most affordable two-wheeler insurance plans while combining the greatest coverage.
You may now acquire bike insurance online from many of India’s biggest insurance providers. Knowing the elements that influence insurance premiums will enable you to compare two-wheeler insurance premiums online and choose the option that provides the greatest value for your money. ##
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.