In addition to being a compulsory requirement as per law, getting a bike insurance policy comes with a wide range of benefits.
Offering protection in the event that your treasured two-wheeler is involved in an accident or other unfortunate situation is the most crucial of them.
Additional benefits may include defence against natural disasters along with crimes like theft and vandalism, depending on the kind of coverage you choose.
Most of us compare bike insurance plans while keeping an eye on the cost of the premiums.
When we see that figure rise with each new renewal, even the most experienced budgeter experiences heartburn.
What drives this increase, and what complicated maths underlies that figure that protects you and your scooter or bike?
By outlining the variables and procedures used to calculate bike insurance premiums, we have made it a little bit easier for you to choose the policy that best suits your requirements.
- Vehicle’s Model and Make
It is true that a bike’s price is influenced by its make and model.
Additionally, the bike’s model and manufacturer are the factors that affect the bike insurance premium because insurance is purchased to preserve the bike’s value.
Your insurance premium will be lower if you own an inexpensive bike, whereas you will be required to pay a higher premium if you possess an expensive sportbike.
- Particulars of the Rider
The premium amount of a bike insurance policy is also determined by the rider’s age, riding experience and gender.
An applicant with five or more years of experience riding a bike will have to pay a lesser insurance premium than an applicant with just one year of riding experience since insurers favour stability and security.
- Age of the Bike
When calculating the coverage premium, the age of the bike is also taken into account.
This is the reason that every insurance portal asks you to enter the age of your bike when you purchase a bike insurance plan in order to provide policy pricing.
A new bike will have a higher premium than an old bike because the former has a higher market value than the latter.
- Engine Capacity
The engine size of the bike is among the most frequent and significant elements that affect the cost of a motorcycle insurance plan.
The engine’s size is determined by the cubic capacity (cc). If your bike has an engine size of 75 cc or less, your premium will be lesser, compared to the cost of the bike insurance premium you would have to pay for a bike that has a 350 cc engine.
- Insured Declared Value
The Insured Declared Value represents the bike’s current market value. Since a motorcycle’s value declines over time due to depreciation, the IDV is determined once a year.
The IDV is taken into account when determining premiums because the supplier of bike insurance is only obligated to provide reimbursement up to the value of the bike.
- Theft Prevention Devices
Installing security devices that have received certification from the Automotive Research Association of India might result in reductions from several insurance companies (ARAI).
It implies that your bike insurance premium will be lower if it has approved safety equipment because contemporary technology reduces the likelihood of bike theft and loss, lessening insurance companies’ obligation to pay out compensation.
- No Claim Bonus
Insurance companies reward customers with a no-claim bonus if they avoid filing a claim during the insurance year.
The NCB is provided as a discount on the premium for the subsequent policy year. You may amass this benefit up to 50% with continued claim-free years and careful driving.
The insurance premium would change as a result, and you will have to pay it once the NCB discount is subtracted.
- Add-on Covers
The amount of additional coverage you decide to get will affect the premium you must pay.
Although add-on covers give you protection from situations that your standard insurance does not cover, they are not free.
Reduce your premium ceiling by carefully selecting the add-on coverage to make sure you simply pay for what you need.
The Bottom Line
When choosing bike insurance coverage for your two-wheeler, keep in mind the previously mentioned factors.
If you are familiar with these factors, it will be easy for you to calculate the proper insurance rate for your bike.
A free calculator is also included to help you calculate the premium. All that’s left to do is compare a number of policy quotations and choose the one that best suits your requirements.
It will give you a cheap insurance policy, which will aid in keeping your bike safe.