Factors That Determine Two-Wheeler Insurance Premium? - Greyfont

Factors That Determine Two-Wheeler Insurance Premium?/ Factors That Determine The Cost of Your Bike Insurance Policy


Ever thought about why the cost of your bike policy isn’t the same as the one owned by your friend? Baffled with this thought? Then you should first understand that there are a number of factors that directly have an impact on the cost of your bike insurance. Let’s understand in detail about the factors that have an impact on your bike insurance premium.


1. Make and model of the bike

When calculating the premium of your bike, insurers take into account the make and model of the bike you would like to insure. It is quite obvious that a sports bike will attract high premium rate in comparison to a scooter. Also, since the cost of a Honda Activa will be less than a Bajaj Dominor bike, the insurance premium is sure to vary.


2. Cubic capacity

Cubic capacity is nothing but the power of the engine of your bike. This is the main component that determines the insurance premium for your bike. Ideally, a bike having a high cubic capacity attracts a high premium. The cubic capacity data is auto populated from the vehicle’s make and model information.


3. Modifications

Though you may like to modify your bike with various accessories and devices to make it look cool, but is important to understand that these modifications can actually cost you more premium. It is always a good idea to insure the modified parts with the accessories add-on cove, rather than including it in the basic cover. More the number of modification, the higher the cost of your cover. 


4. Installation of anti-theft devices

Installation of an anti-theft device would cost you less premium. This is because insurance companies see if you have taken enough safety measures to prevent your bike from theft.


5. Age

Your age plays an important role in letting bike insurers determine the cost of your insurance policy.


6. Riding skills

If you make frequent claims, the cost of your insurance policy increases. Thus, it is important that you have good riding skills as not making any claims in a year can also make you eligible to receive the NCB discount.


7. Add-ons

You can enhance the coverage of your comprehensive bike insurance policy by opting for riders such as personal accident, zero depreciation, medical cover, etc. Though adding these add-ons to your base policy would increase your coverage, but it is important that you make an informed decision as they play a huge role in determining the cost of your policy.


8. Location

Two wheeler insurance premiums in metro cities is higher in comparison to three-tier and two-tier cities. This is because metro regions have high traffic density due to which chances of accidents are higher.


9. Voluntary deductible

Deductible is nothing but the cost you will have to share with the insurer at the time of making the claim. Opting for higher voluntary deductible means lower the premium of your bike policy.


10. Membership

If you are a member of Automobile Association of India, you can get discounts on your two-wheeler purchase.


The above factors are taken into consideration by the insurance companies when determining the premium of you two-wheeler. You can always reduce the premium of your bike cover by purchasing the policy online, comparing insurers and also by riding safely to get the NCB discount.


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