Understanding your premium is the first step towards getting the perfect bike insurance coverage. However, if you are a newcomer to the world of insurance, you can easily get confused about the insurance premiums and wonder how the premium price is even related to anything else other than just the services it can cover!
Nonetheless, to make things clearer, here are 6 factors that affect the premium you pay for your bike insurance –
- Bike’s condition and characteristics – High-end models of bikes that have a higher than average Cubic Capacity(CC), would have a higher premium than the bike models that are more commonly seen on the road. The number of kilometres the bike has driven, its fuel type, the modifications, and even the bike’s current market price are considered when evaluating the premium.
- Residential security – Your insurance premium can go up significantly if you do not have a designated parking spot and have to park your bike in the open. The area of your residence also matters. If robbery and theft are not very uncommon in your neighbourhood, the premium will be calculated according to the risks involved.
- Rider’s driving track record – The premium you pay decreases with the more years of experience you have as a rider. Being a skilled rider is rewarding as driving safe and having an almost clean driving record helps in bringing the premium a little more in your budget. The pricing of your insurance plan also depends on your demographics like age, gender, occupation and such.
- No-claim bonus – With every passing unclaimed insured year, you accumulate discounts on the premiums you pay every time you do an offline or online bike insurance Being a safe rider helps you get amazing discounts that can possibly start from 20% of your premium price and reach up to a mind-blowing 50% off for completing 5 years of driving without making an insurance claim. This discount can help significantly bring your premium down.
- Voluntary deductibles – There are two types of deductibles that are a part of any bike insurance, voluntary deductibles and compulsory deductibles. By increasing voluntary deductibles, you can significantly bring your premiums lower. Just make sure that the increase you opt for fits within your budget.
- Add-ons – When you buy a comprehensive bike insurance policy, along with extended coverage you also get the chance to avail of some additional services that an insurance company provides. You can get add-ons like zero-depreciation cover or engine protection and save a significant sum of money in the long run during claims. However, availing of these additional services increases your premium proportionally – the more add-ons you have, the more premium you pay. So, choose add-ons wisely.
We hope this article helps you understand what factors affect the pricing of your two-wheeler insurance cover and how you can bring the premium a little more into your budget. All the best!