Factors that Determine the Cost of Bike Insurance Policy

Don’t think every biker has to pay the same insurance amount to get their bike insured. There are a lot of factors that come into play to determine the cost of a bike insurance policy. In order to predict risk, the insurance companies who offer bike insurance online or offline take into consideration various factors.

Undoubtedly, the increasing number of two-wheelers on Indian roads has contributed to increased traffic, leading to a greater risk of accidents. Notably, as per the Indian government, it is mandatory for all vehicle owners to buy insurance.

What is a bike insurance policy?

A bike insurance policy refers to an insurance policy taken to cover against any damages that may occur to your two-wheeler due to an accident, natural disaster, or theft. It also offers protection against third-party liabilities arising from injuries to one or more individuals. You can either buy bike insurance online or offline.

(Tip: Go online! You’ll get many offers and deals.)

What are the factors that determine the cost of a bike insurance policy?

1.  Type

As you know, the price of each vehicle varies depending on its quality and features, and the cost of insuring each type of bike is also different. In fact, the same goes for other types of vehicles as well. The main component which forms a base for deducing the cost of a policy is the Cubic capacity of a bike’s engine. Higher the capacity, the higher the cost of insurance.

2.  Age

The bike’s age is also taken into consideration while calculating the coverage premium. So, when you plan to buy bike insurance online or even offline, it requires you to enter the age of your bike in order to provide policy rates. Obviously, a new bike has a higher market value than an old one. Hence, the former will have a higher premium, while the latter will have a lesser premium.

3.  Engine Capacity

Another essential factor influencing the bike insurance policy’s price is the bike’s engine capacity. If your motorcycle or any type of two-wheeler has an engine capacity of 75 cc or less, you’ll pay a lower cost, but if your vehicle is 350 cc, you’ll have to pay a higher cost.

4.  Anti-theft devices

If your bike is stolen, the insurer will check if you have taken enough safety precautions to prevent it. The claim is settled only after the insurer is satisfied that you were not careless enough to leave the keys in the ignition or parked your vehicle in an unsafe area where it was highly likely to be stolen. So, to ensure that your two-wheeler is not stolen, it is advised to install an anti-theft device on your bike, as the insurance cost might reduce due to this.

5.  No Claim Bonus (NCB)

Most of us are unaware of the discounts offered on vehicle insurance policies. One such discount is a No Claim Bonus (NCB). When an individual does not raise a claim against the bike insurance policy in the previous year’s policy period, they are eligible for an NCB. Surprisingly, one can get as far as a 50% discount on bike insurance premium under NCB. 

Whether you go for bike insurance online or offline, make sure that you keep the factors mentioned above in mind. Also, it’s no rocket science, and an individual can simply calculate the correct premium if they are aware of these facts. So, evaluate several policy quotes and choose the one that best fits your needs.