How do insurers determine the Bike Insurance cost?
Buying a vehicle is a huge decision for many first-time owners. A lot of deliberation goes behind the purchase. Every detail matters, from finding the suitable model, its ergonomics, build, engine capacity, and aesthetics. But when it comes to getting it insured, there is a laidback attitude. It often gets considered as a hassle and unnecessary cost.
Buying Bike Insurance is the most critical aspect of owning a vehicle. Without it, you cannot ply on Indian roads. The Motor Vehicles Act mandates this for all Indian riders. But the costs are not similar for everyone even if they opt for the same policy. This is because insurers determine the premium based on specific factors. Learning about them is essential to compare offers accurately. Here are some of them:
The make and model of your vehicle is the primary factor influencing the premium. A standard bike costs less and has lesser complications. Hence, it requires minimum insurance coverage. As a result, you get charged with a lower premium. Contrarily, expensive two-wheelers for sports or luxury have higher maintenance. Hence, policy providers levy higher costs on them. If you want a lower insurance cost, you should consider this aspect while purchasing the vehicle.
Motorbike enthusiasts insist on improving the aesthetics and performance of their vehicles. While it looks cool, the modified parts increase the risk of damage. They need to get protected separately. As insurers must add them to the coverage, they increase the 2-Wheeler Insurance cost. The extent of the hike depends on the number of modifications you make. Moreover, such flashy additions make your vehicle prone to theft. Hence, choose this wisely.
The liability only Motor Insurance fulfils obligation towards third-party damage. But opting for a Comprehensive Plan gets you added protection. It safeguards your vehicle along with a third party. Adding to this, you also get to choose from riders. They include covers for Depreciation, Consumables, Gap Value, Roadside Assistance, Engine Safety, etc.
These additional features target specific needs. They go beyond the base security you get. While they are helpful, you should choose them wisely as they increase the premium.
Unlike modifications, these are necessary changes. Here, you install anti-theft devices like discs, alarm systems, locks, GPS trackers, etc. They showcase you as a responsible rider. Insurers consider these safety features to reduce the premium. They check if the Automotive Research Association of India (ARAI) authorises them for this. Hence, you should think about including them despite the Two Wheeler Insurance.
The other protection measures fail if you do not ride carefully. Your skills and safety measures impact your security on roads. For instance, rash driving is the common cause of accidents. It is also the aggregator for other damages. To avoid this, you must have a riding experience with a good understanding of road and traffic signs. Work on this continually until you feel confident on the roads. It helps both as a precaution, and a means to reduce premium cost.
While buying an online Bike Insurance, you fill in a form along with the required documents. Here, your age, bike specifications, riding experience, location, etc., are needed. Under bike details, age is considered an important aspect. It plays a crucial role in computing the policy premium. Even when you use calculators, age is a variable used to show the results.
This is because it contributes to depreciation. Higher depreciative value equals less resale price and vice versa.