4 Things That Decide Your Two-Wheeler Insurance Cost

Last updated on November 1, 2019

In today’s age, cars have become the most common vehicle to be used for transportation. However, two-wheelers like bikes and scooters have proven to be more convenient for travellers. Two-wheelers provide you with the liberty of riding in narrow lanes, which otherwise seem inaccessible. Besides, they are also extremely affordable and economical. However, the comfort that two-wheelers provide, needs to be protected. This simply means that your vehicle should be insured under a two-wheeler motor insurance. This insurance will provide a cover for your vehicle in case of any natural or man-made mishap.

Once you decide on an insurance plan, it is important to remember that your two wheeler insurance priceis not fixed. It depends upon various factors, some of which cannot be controlled. It is required for you to understand these factors and how they’d affect your premium cost. Mentioned below are four factors that decide your two- wheeler insurance cost:

1. Condition of the insured vehicle: Your bike’s condition will have a direct impact on the premium amount. The older your bike gets, The older your bike gets, the value of the bike (Sum Insured) reduces, leading to a reduction in premium. Sports bikes and bikes with high CC engines, will have a higher premium. Incase your two-wheeler has additional accessories or it is modified, then the premium will be more. Other parameters like, current price in the showroom and the number of miles, also have a direct impact on the premium cost.

2. Coverage components: The insurance quote is majorly dependent upon this factor. It is understood that higher premium has to be paid if your insurance includes more number of components. For example, under the Motor Vehicle Act, the third-party two-wheeler insurance is made mandatory. But it is not enough to protect your vehicle. A comprehensive bike insurance, with a higher premium charge, will provide a third-party cover along with shielding your bike from any damage. Long term two wheeler insurance will be less expensive as opposed to single-year policies when compared over time.

3. Add-ons with the insurance: Add-ons are generally taken with four-wheeler insurance because the investment for them isusuallyhigh. But, it is recommended that high-end two-wheelers should invest on add-ons. Insurance companies offer options like zero depreciation cover, roadside assistance, medical cover, personal accident cover and cashless hospitalisation cover. While the agents try to lure you into buying most of them, it is important to use a two wheeler insurance calculator to calculate your premium. This will give you a fair idea of which add-on would increase your premium, and by what range.

4. By volunteering a high deductible: This means that while claiming your insurance cover, you will have to pay a part of the claim. Although the money is going from your own pocket, the premium amount to be paid will reduce. But, this should be done only if the policyholder wishes to. In case you decide to not file for any claim through the year, an NCB will be added to your policy.

A good insurance policy guarantees to pay for any damages caused to you or your vehicle due to an accident, and wishes you a safe ride. However, it is the duty of the rider to do a thorough study and compare two wheeler insurance policies available in the market and select the most suitable one.