6 Factors That Affect The Cost Of Your Bike Insurance Premium

The two-wheeler has become a necessity when it comes to transportation on roads. The vehicle gives you freedom from the time barrier and provides convenience and availability whenever required. To keep the vehicle guarded, bike owners require coverage to safeguard it from events of mishaps. Besides, having an insurance policy is the need for the law. The traditional coverage includes the protection of the two-wheeler from accidents. Some other benefits depend upon the type of insurance they select, which provides a host of additional coverage that includes natural disasters to incidents like theft and vandalism. One of the essential factors where bike owners will love to keep their eyes is the amount of insurance premium they are paying every year. This figure might even give you a blazing sensation in the chest as the price increases after a year passes away. You can ideally prefer to get the cheapest bike insurance online. So, have you ever imagined how this amount gets accelerated, and what are the complex calculations of the prices that safeguard your two-wheeler?

These factors can affect the cost of your bike insurance premium

1. The Type of Two-wheeler

The price of any two-wheeler is determined by the quality and features it offers, similarly the price of premium also depends upon ensuring different types of bikes. The cubic capacity of a bike’s engine is a significant component that becomes the base for establishing the cost of a two-wheeler premium. This means that a bike with a higher cubic capacity will draw a higher premium amount. Another vital aspect is related to the brand and functionality of a motor vehicle one purchases. This helps in defining the net worth of a bike. A good brand means every part and component of the vehicle is expensive. Hence, this also upgrades the price of the insurance premium paid by the bike owner. The amount of a bike insurance policy is almost 2-3% of the bike’s market value.

2. The Type of Insurance Cover

The final premium amount that has to be paid by policyholder depends mainly on the type of insurance coverage. In India, it is mandatory to have a vehicle insurance policy by Motor Tariff Act 2002. The conventional policy’s coverage is only limited to damage to the third party and its property. While in a comprehensive policy a rider will get extensive coverage on third party damage as well as the loss of the bike owing to natural calamities and man-made errors like thefts, fire, vandalism, and others. A bike owner can select any of these according to his necessities. The amount of premium is, however, more when anyone prefers to go with comprehensive coverage. Get this coverage through the cheapest bike insurance online.

3. Installation and Modification Of the Bike

Even after purchasing a bike from a reputed brand, a rider can modify it through performance and aesthetics. However, if the parts get damaged, the bike owner needs to bear a huge financial loss. To avoid such circumstances, it is advised that bike riders can insure these parts separately. Including each modification under an insurance coverage plan eventually adds up the policy’s cost. More the number of modifications higher will be the cost of the insurance premium. When a theft takes place, the insurance company will only settle the claim after proper scrutiny, and the fact the owner wasn’t careless enough to leave the keys on the bike. Devices like anti-theft mechanisms are installed to check and prevent the bike from theft. The cost of insurance usually comes down due to the installation of such devices.

4. No Claim Bonus

In-vehicle insurance, a no claim bonus is given as a reward to a prudent policyholder who has not made any claims of insurance in the preceding year. Through this provision, policyholders can get a discount ranging from 20%-50% in his premium amount. A no claim bonus is available in a comprehensive two-wheeler coverage in contrast to the third party insurance. A policyholder only becomes eligible to claim this discount ones his policy expires, and he goes for a renewal. Even if a bike owner sells his two-wheeler and purchases a new one, he can retail all his no claim bonus for the next policy. Besides, you can even buy the cheapest bike insurance online and renew your insurance policy with a no claim bonus.

5. Riding Skills

The knowledge, skill, and experience of a bike rider also matter in establishing the amount of premium to be paid annually. Insurers offer a lesser premium amount to an applicant having an experience of five years than to an applicant having one year experience. You can shop around the cheapest bike insurance online. Moreover, the riders need to be cautious while riding bikes on the road. In cases of severe damages, bikers will need to raise the claim against an insurance policy. Frequent such claims can increase the premium amount over a period.

6. Add-on Covers

This feature allows giving extra coverage in your bike insurance policy. This typically comes in a comprehensive insurance scheme and is usually added in policy according to the requirements of the buyers. However, an additional cover will ultimately lead to an increase in the price of policy premiums.

The best way to balance the price of the bike insurance premium is to keep all the factors listed above in your mind. You can even prefer to apply for the cheapest bike insurance online, which can drag down the price significantly.