You and your friend have the same brand of vehicles but the insurance premium that you are paying is different from the friend’s premium. It often confuses the policyholder why there is a difference in the premium. There are many factors that can affect your bike insurance premium. It depends on the choices you have made while buying the bike insurance policy. Here are some top factors that affect your bike insurance premium.
Type of Two-wheeler
The first and foremost factor is the quality and features of the bike. The cubic capacity of the engine of your bike is the main factor that insurance companies consider while determining the cost of the Bike Insurance Policy. If the cubic capacity of your bike is on the higher side, you will have to pay a higher premium.
Cost of the vehicle
The brand and functionality of the bike determine its cost and the billing amount of your bike plays an important role in finalizing the cost of the premium. In other words, a bike from Bajaj will cost much lesser in comparison to a bike manufactured by Harley Davidson. On average, the bike insurance policy may cost you up to two percent to three percent of the market value of your bike.
Bike modification is popular among the young generation. You can completely change the performance and aesthetics of your bike with modifications. However, if you are getting modifications done it is very important to inform the insurance company about it. A comprehensive bike insurance policy will not cover the modifications. If you do not inform the insurance company about the modifications and opt for an add-on that covers such parts, the insurance company will not provide cover for the original parts of the bike too. The more modifications you get higher will be the premium cost because of the add-ons.
Anti-theft devices are also considered modifications but these devices help in reducing the premium cost. When you file a claim for theft, the insurance company determines if you took all the precautionary measures or not. If you left the key in the ignition or you were careless about the parking of the bike, the company has the right to refuse it. If you have an anti-theft device on your bike, it will be considered as a positive measure and they give you some discount on the premium cost.
If you have been careless while driving the bike and raised a claim in the past, the insurance company will charge you a higher premium. Those who are skilled drivers and take extra precautions on the road to be safe, the premium will be less.
Add-ons or riders are an important part of the bike insurance policies. Personal accident cover, modification cover, zero depreciation are some of the many add-ons that you can choose from. More add-ons will result in higher premium cost but if you feel that the add-ons are important based on the location, age of the bike and other factors, you should opt for them.
There are many ways to get discounts on premium. The most common is the NCB or No Claim Bonus. If you have not filed any claim in the previous year, the insurance company will provide you up to a 50% discount on the premium. It starts with a lower percentage and increases as the years pass by. Other options include discounts and offers by credit card companies and other payment gateways which you can avail while purchasing or renewing the bike insurance policy using their payment gateway.
If you have a membership in certain groups that have affiliation with the bike insurance companies, you may avail special discount.
Gap in Renewal
It is important that you renew your bike insurance policy on time. As per the regulations, you can renew the policy up to 60 days prior to the date of renewal. In case you miss to renew the policy the company will provide a 30-day grace period but during that 30-day period, you won’t get cover. In the policy lapses, the premium will increase.
There are several factors that can affect the premium of your insurance policy. From the model of the bike to modifications everything matters while calculating the premium. Every insurance company has an online calculator that you can use to find out the premium that you will have to pay. Compare the policies and choose wisely to ensure maximum coverage.