Are you wondering what affects your 2 wheeler insurance premium? Well, there are a number of variables that do so. Take a look at this article to know what these variables are and what role they play to give your bike insurance premium its value.
Bike insurance variables that affect the insurance premium
Listed below are the main variables that have an impact on the premium of the bike insurance policy you buy:
- Make and model: Obviously, the make and model of your bike impacts its value. And since motor insurance is bought to protect the value of the vehicle, the make and model are direct factors here. If you have a cheaper, local brand bike, the premium of the 2-wheeler insurance policy will be lower. If you have an imported superbike, it will be higher.
- Age of the bike: Similarly, the age of a bike also plays an important role here. So when you buy two wheeler insurance, you are asked to enter the age of your bike to get a quote. A new bike is more expensive and carries a higher premium as compared to an old and bike.
- IDV: The insured declared value is the actual value of the bike. It is calculated every year as with time, your vehicle depreciates. So when the premium of the bike insurance policy is calculated, the IDV is taken into consideration and the calculations are done accordingly.
- Engine capacity: The engine capacity is one of the most common and important factors that affect bike insurance premium rates. The engine size is measured in cubic capacity (cc). If your bike is 75CC or less, you will have a lower premium. If it is higher, say, 350CC, you will have to pay a higher premium when you buy two wheeler insurance online.
- Safety devices: If you have certain safety devices installed in your bike, your bike insurance premium will be lower. This is because the insurance company fixes a risk component with every vehicle. When the risk is high, the insurance premium is high too. When the risk is low, the premium is lower. So a vehicle that has a safety device is obviously less risky to insure. You, therefore, get a discount on the premium rates.
- Deductible: The next important variable in bike insurance that affects the premium is the deductible. A deductible is a pre-decided amount that you, the policyholder, pledge to pay at the time of a claim. You need to pay a smaller percentage of the claim, while the insurer pays the rest. If you opt for a lower deductible, your premium will be higher and vice-versa.
- NCB: And finally, we have no claim bonus component that has a large impact on the 2 wheeler insurance premium rates. No claim bonus is a reward that you get for not making any claims in a complete policy year. You get the reward in the form of a discount on the premium of the following year. If you go a good few years without making any claim, your NCB accumulates and even goes up to as much as 50%.The premium rates are therefore impacted after deducting the NCB so this becomes an important variable for you to consider.
Keep the points mentioned above in mind and you will never have any problems while calculating the premium of your bike. Go online and use a free calculator to understand what your premium liability would be. Then, compare the different plans to locate your ideal cover. Once that is done, buy the bike insurance plan and keep your bike secured. Also remember to renew on time, as it is illegal to ride a two-wheeler without insurance on the roads of India.
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