Considering their affordable price and easy commuting through narrow roads, two-wheelers are a popular means of transportation on Indian roads. However, the increasing amount of traffic on Indian roads calls for the need for bike insurance to safeguard vehicle owners.
Two-wheeler owners should know the factors that can influence their premium amount before finalising their decision for an affordable bike insurance price. Investing in the right policy will help the policyholder receive the necessary coverage within their budget.
What are the Factors that Affect Your Bike Insurance Premiums?
Here are some of the factors that can affect your bike insurance premium:
- Coverage Type
There are two types of bike insurance in India: third-party insurance and comprehensive insurance. As per the Motor Vehicles Act of 1988, third-party insurance is mandatory, but it only covers third-party liabilities. However, a comprehensive policy covers both third-party liabilities and own damage, which leads to an increase in the premium amount compared to third-party insurance. You can use a bike insurance calculator to compare the premium based on your insurance type.
- No Claim Bonus
NCB, or No Claim Bonus, is the discount offered by the insurer if the insured bike owner maintains a claim-free year. You can avail a discount on the insurance premium while renewing if you have made zero claims in the previous year. Insurance companies offer a 20% discount for the first claim-free year and up to a 50% discount for maintaining five consecutive claim-free years.
- Add-on Covers
Add-ons are additional benefits that can be added to your base plan in exchange for an extra premium. They include benefits such as roadside assistance, zero depreciation cover, etc. Thus, adding add-on covers can increase your bike insurance price.
- Anti-theft Devices
Installing anti-theft devices on your bike reduces the risk of it being stolen. Thus, insurance providers charge comparatively lower premiums for bikes that are installed with anti-theft devices, as they reduce the risk of compensation from the insurance company.
- Voluntary Excess
There are two types of excess applicable for two-wheeler insurance policies. They are: Compulsory Excess and Voluntary Excess. Compulsory excess is a fixed amount you have to pay toward each claim, and the insurer pays the rest of the eligible repair cost. Voluntary excess is optional. Choosing a higher voluntary excess lowers your premium, but it increases your out-of-pocket payment when you make a claim.
- Make and Model
Bike insurance price is also influenced by the model and manufacturer of your two-wheeler. If you purchase a high-end model, the insurance premium will go higher as it increases the insurer’s risk.
- Engine Capacity
Bikes with higher engine capacity attract higher premiums as they impose a higher cost and risk to the insurance company. This is because bikes with higher engine capacity offer high speed, which may increase the risk of accidents.
- Geographic Location
The two-wheeler’s premium amount is also influenced by the user’s location. There are more accidents when you live in an urban area with more traffic, which implies you will have to pay a higher premium.
Conclusion
Bike owners should understand the factors that influence the premium of their two-wheeler insurance to avoid high costs. Using a bike insurance calculator can help assess all the factors and estimate accurate costing through easy comparison and customisation.
