Two-wheeler insurance provides a lot of benefits to the policyholders. However, to avail the benefits, a bike owner must pay the premium. In this article, we will discuss the factors that impact the premium of two-wheeler insurance.
It is unwise to drive a bike without a two-wheeler insurance policy. Furthermore, it is illegal to drive a motorcycle without two-wheeler insurance. A bike insurance plan will provide you with a lot of benefits. The most important of these is it offers you cover in case of an accident. You can even get additional benefits such as cover against natural and human-made calamities, personal accident cover, etc. based on the policy you buy.
Factors that Impact Two-Wheeler Insurance Premium
- Type of Insurance Policy
One of the most important factors that affect the premium amount is the type of bike insurance policy. Majorly, two-wheeler insurance policies are available in two types- comprehensive insurance and third-party insurance.
Third-party insurance policies are cheaper compared to comprehensive plans. However, comprehensive policies provide extensive coverage. Third-party insurance will only cover damage to third-party property. However, comprehensive insurance will cover third-party liabilities as well as damage to your bike. You can choose a policy based on your requirements and budget.
- The Type of Bike
The price of the bike also impacts the insurance premium amount. For instance, the premiums of a standard bike will be cheaper than a high-end bike. A few other factors that affect the premium amount are the bike’s model, place of registration, bike’s age, etc.
Furthermore, the cubic capacity of the two-wheeler directly impacts the premium. The higher the cubic capacity, the higher the premium amount.
- Bike Owner’s Particulars
The bike owner’s age, gender, riding experience, etc. are some of the important factors that are considered while determining the premium amount.
For example, a 22-year-old person, who has one year of riding experience, might have to pay a higher premium compared to a 31-year-old person, who has eight years of riding experience.
- Bike Modifications
In order to make the bike look better or to improve its performance, many bike owners modify their vehicles. Such modifications can increase the premium of two-wheeler insurance.
- Add-Ons
Add-ons are the additional benefits that an insurance owner can purchase by paying extra premium. These add-ons provide benefits that are not a part of a regular policy. While there are many add-ons to choose from, a bike owner can select the one he/she needs the most.
Some of the most important add-ons that every bike owner should consider are- zero depreciation cover, personal accident cover, return to invoice, and accessories cover.
Add-ons will increase the premium amount of a bike insurance policy, but they can provide the bike owner with additional security.
The aforementioned factors have a direct impact on the premium amount. Furthermore, by keeping your bike in good condition and maintaining a stable riding record, you might be able to lower the premium amount. It is recommended that you compare various policies before purchasing one to get a better deal.
