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  • 10 Important Factors that Affect Bike Insurance Rates

    Published on January 31, 2019

    Let’s be honest for a moment. While buying a bike insurance policy, the premium of the policy plays a crucial role in the decision. There is little doubt that the premium of policy is important but at the same time, one must not neglect the coverage on offer.

    After all, the whole point of buying a policy is to offer you financial assistance during the time of needs. You wouldn’t want to be in a situation where your policy gives up on you, forcing you to pay money from your pockets. Yet, there are a few parameters which can impact your new bike insurance premiums.

    Here is a detailed list of all these factors.

    1. Type of Bike Insurance: The law mandates a basic third-party liability policy in India. However, you can opt for a comprehensive policy for your bike, which includes third-party liability and own damage component. You also have the option to opt for add-ons to enhance your policy’s coverage. Since a third-party cover offers bare minimum cover, it costs less than a comprehensive plan.
    2. Manufacturer: The premium amount of your new bike insurance largely depends on the manufacturer of your bike as well.
    3. Engine Capacity: There are usually four slabs based on which insurance premium for third-party cover varies. Engine capacity of the bike is less than 75 cc, between 75 cc to 150 cc, between 150cc to 350cc and above 350 cc.
    4. Age of Bike: Since the valuation of a bike reduces over time, depreciation comes into the picture. Thus, it is cheaper to insure an older bike as compared to a new one (except for classic or vintage bikes).
    5. IDV: The Insured Declared Value is directly proportional to your bike insurance premium. A bike with a higher IDV fetches a higher policy premium and vice versa. In simple words, it is the current market value of your bike. However, you can tinker around with this value to reduce or increase your insurance premium.
    6. History: Your riding history also plays a crucial role in deciding the policy premium for your bike insurance. Someone who has not claimed their policy in the past will end up paying lower premiums as opposed to someone who claims on a regular basis. The No Claim Bonus is the major differentiating factor in both the cases.
    7. Deductibles: While buying your bike insurance policy, you will have to pay a compulsory deductible. In the case of a claim, this is the minimum amount that you must pay from your pockets. You can also opt for a voluntary deductible which will aid you in reducing the premiums further.
    8. Residence: Your place of residence also has a say in deciding the insurance premium for your bike. The premiums are slightly higher for someone staying in urban places as compared to someone in semi-urban or rural settings.
    9. Registration Area: If your bike belongs to an area that is more prone to accidents, you will end up paying a slightly higher premium.
    10. Add-Ons: As mentioned above, you can enhance the coverage of your policy by opting for add-ons. You can choose one or more than one add-on for your policy and your premiums will increase accordingly. However, you can secure a much better policy with a higher coverage with add-ons.

    If you are renewing your policy for the very first time, do not get overwhelmed by these factors. When you buy bike insurance online, you have the option of using an online calculator. This would ensure that you know the premium prices of a policy before buying the same.

    Apart from that, when you buy bike insurance online, your savings will be higher as compared to offline policies. And the convenience levels that come along with it acts as the icing on the cake.



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