Factors affecting Two Wheeler Insurance Premium
Reasons to Buy Bike Insurance Online, Save on Bike Insurance Premium
Bike Insurance Premium: When it comes to buying a two wheeler insurance policy, we think of finding an agent or going online. People think of buying a cost-effective bike insurance policy along with comprehensive coverage. There are many factors which affect two wheeler insurance premiums, which we will discuss in this article. Also, you will see tips and tricks to save on bike insurance premium. In this article we will also discuss why one should buy bike insurance online.
Factors Affecting Two Wheeler Insurance premium
There are many factors which decide and affect the two wheeler insurance premium. Let’s see the details of these factors below –
1. Make & Model of the two wheeler
The main criteria to decide a premium is make and model of the bike. The lower and basic models are comparatively low priced to latest models of a two wheeler. Higher the range of models, higher will be the premium.
2. Age of the Vehicle
If the age of a two wheeler is high, the bike insurance premium will be lower. This happens due to the depreciation calculation. Every year, the market value of the vehicle goes down. The decrease in the value of the bike is called the depreciation value.
3. Coverage of risk and Add Ons
When a customer opts for a higher compensation amount and includes riders or add ons to the policy, the bike insurance premium goes high. A person will pay less amount for the basic third-party insurance in comparison to comprehensive cover.
4. No Claim Bonus discount
Every bike insurance company gives a discount for not filing any claim in the previous year at the time of renewal of the policy. This is called No Claim Bonus or NCB. This discount will reduce the premium rates.
5. Age of the Insured
Insurance companies consider younger riders to have higher risk exposure compared to middle-aged or old age riders. More the age of the insured person, lesser will be the premium amount.
6. Insured Declared Value (IDV)
IDV is fixed by the insurer at the time of purchase of policy. This is calculated based on the market value of the bike. Lower the IDV lower will be the premium and vice versa.
7. Geographic Location of the two wheeler
According to the exposure of risk, the premium of bike insurance gets affected. For example, in cities, the premium of the bike having the same make and model will be higher compared to rural areas.
8. Engine Cubic Capacity (CC)
Engine CC is directly proportional to your premium rates. Higher the Engine Cubic capacity higher will be the premium. The engine cubic capacity is generally higher in sports bikes.
How to Save on Bike Insurance Premium?
Here we will discuss some tips and tricks which can save money on your bike insurance premium.
1. Claim your NCB
Ask your insurer to deduct No Claim Bonus if you have not lodged any claim for the previous year. This amount is deducted from the basic premium amount. It is a most common and effective way to save on your two wheeler insurance premium.
2. Select the Cubic Capacity of Your Bike Wisely
As discussed in this article above, higher cubic capacity bikes attract a higher amount of premium. Thus, it is necessary to choose a bike according to your needs.
3. Increase safety of bike
If you increase the safety of your bike, the insurer will consider this as a positive sign. The insurer will also get to know about your awareness of traffic rules. Installing a safety device may save you a good amount on a two wheeler insurance premium.
4. Calculate IDV of bike
A person can calculate the correct insured declared value (IDV) by knowing the age of the bike. You can see the registration certificate of the bike to know the manufacturing year of the bike. Based on the IDV you can bargain with the insurer to reduce the premium.
Why to Buy Bike Insurance Online?
Now when we are aware of facts that affect the bike insurance premium cost and tips to save on premium, we can easily get a bike insurance. The best way to purchase bike insurance is to shop online. There are a number of insurance companies offering online two wheeler insurance policies. Here we will discuss reasons which support online purchase of bike insurance.
- It is easy and quick to get a two wheeler policy online in comparison to buying bike insurance offline.
- You don’t have to bear extra charges like inspection of the bike, documentation charges etc. Hence you will end up saving money if you buy bike insurance online.
- It is not mandatory to upload or provide a previous year policy when you opt for online bike insurance. This also means that a person can easily get the insurance policy if previous insurance has expired. Also, you don’t have to pay a penalty for not having insurance. Thus, it will save your money.
- Requirement of Less or no documentation. The online insurer will ask you to upload or provide details mentioned on the registration certificate like chassis number and engine number etc.
- Online insurers will also help you in getting your claim settled easily and quickly. They provide 24X7 support through phone calls or chat.
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