Bike insurance is designed to protect the bike owner and the insured vehicle against potential damages and liabilities. This is why the Government of India has made it mandatory for all bike riders on public roads to own and possess valid insurance at all times. The premium of bike insurance differs from person to person, based on various factors. These include the make and model of the bike, the age of the bike, the insured declared value (IDV), and so on. These factors can either reduce or increase your premium. Let us take a look at how these factors affect your bike insurance premium.

Factors Affecting Bike Insurance Premium

Make and Model: It is a well-known fact that the make and model of your bike affect the overall cost of the bike. But, did you know that it affects your insurance premium too? Yes, you heard it right. An expensive bike, when lost or damaged can be equally expensive to replace or repair, owing to its higher value and vice-versa. This is how the make and model determine the premium cost of your insurance.

Age of the Bike: The value of any vehicle is said to depreciate the moment it leaves the showroom. This rule holds good for bikes too. In other words, the value of a brand-new bike is higher, and the value of an older bike is lower. Taking that into account, a new bike warrants a higher premium and vice-versa.

Insured Declared Value (IDV): The IDV is the market value of your bike. In simpler terms, the IDV is the maximum amount you will receive if and when you make a claim. Though it decreases exponentially every year, due to the depreciation of your bike, it affects your insurance premium. Your insurance provider is expected to compensate you based on your IDV. So, the higher the IDV, the higher the premiums and vice-versa.

Engine Capacity: The basic purpose of your insurance is to protect you and your bike. With that being said, though an advanced engine for your bike ensures enhanced performance, it does not necessarily translate into increased safety. This is why, the higher your engine capacity, the higher your bike premiums and vice-versa.

Anti-theft Devices: With the increasing crime rates these days, it is quite a task to keep your bike safe. This is why there are quite a few anti-theft devices and alert systems approved by the Automotive Research Association of India (ARAI) to guard your bike. These devices don’t just protect your bike, but also guarantee you a significantly lower premium because it minimises the risk of threat or loss. This ultimately lowers the chances of you having to make a claim from the insurance company.

Apart from the above-mentioned factors, there are few other factors that affect your insurance premium. Some of these include your no-claim bonus, the add-ons you choose, deductibles, the geography of your location, etc. Your insurance premium is linked to all these factors. Most people consider opting for low-cost insurance, in order to pay lower premiums and save some money. Though that might seem like an economical option at first, one might end up spending more, out of pocket in case of a mishap. So, it is advisable to choose your insurance policy wisely and ensure your risks are covered and you’re financially well-protected.