Are you a proud owner of a motorcycle? If so, you must already know the importance of having a comprehensive bike insurance policy. Accidents can happen anytime, and having insurance coverage can provide you with the financial protection you need in case of any unfortunate events. However, have you ever wondered what determines the cost of your bike insurance policy? In this blog, you will explore the various factors that influence the premium you pay for your bike insurance, with a particular focus on bike insurance online.
Type of coverage
One of the primary factors that affect the cost of your bike insurance policy is the type of coverage you choose. There are mainly two types of bike insurance policies – third-party liability insurance and comprehensive insurance. Third-party liability insurance is the most basic and mandatory form of coverage required by law. It covers damages caused to third parties, but it does not provide coverage for your own bike. On the other hand, comprehensive insurance provides a wider scope of coverage, including damages to your bike, theft, fire, and third-party liabilities. Naturally, comprehensive insurance tends to be more expensive due to its extensive coverage.
Bike’s model and age
The make and model of your bike play a significant role in determining the insurance premium. Expensive and high-end bikes typically have higher insurance premiums since their repair and replacement costs are higher. Similarly, the age of your bike affects the premium as well. As a bike gets older, its market value depreciates, leading to lower insurance costs.
Engine cubic capacity (CC):
The engine cubic capacity (CC) of your bike is a crucial factor in calculating the insurance premium. Bikes with higher CC are considered to have a greater risk of accidents, and hence their insurance premiums are higher. On the other hand, bikes with lower CC are considered less risky and, consequently, have lower premiums.
Your geographical location also plays a role in determining the cost of your bike insurance. If you reside in an area with a high rate of accidents and thefts, your insurance premium is likely to be higher. On the contrary, living in a low-risk area can lead to lower premiums.
No claim bonus (NCB):
If you have a claim-free history, you can avail a No Claim Bonus (NCB) on your bike insurance premium. NCB is a reward provided by insurance companies to policyholders who have not made any claims during their policy term. This bonus can significantly reduce your insurance premium and encourage safe riding practices.
Insurance companies offer various add-on covers that can be included in your policy for additional protection. These add-ons, such as zero depreciation cover, roadside assistance, and medical expenses cover, come at an extra cost. Including multiple add-ons will increase your insurance premium.
Opting for a voluntary deductible is a way to reduce your insurance premium. A voluntary deductible is the amount you agree to bear from your pocket during a claim, and the insurer covers the remaining amount. By choosing a higher voluntary deductible, you can lower your premium, but you must be prepared to pay more during a claim.
As a bike owner, it is essential to be aware of the various factors that influence the cost of your bike insurance policy. Factors like the type of coverage, bike’s model and age, engine cubic capacity, location, No Claim Bonus, add-on covers, and voluntary deductible all play a significant role in determining your insurance premium. Understanding these factors can help you make an informed decision while purchasing bike insurance online or any commercial vehicle insurance.
Remember, bike insurance is not just a legal requirement; it is a crucial aspect of responsible bike ownership. Investing in a comprehensive policy ensures that you can ride with confidence, knowing that you are financially protected in case of any unforeseen events. So, compare various insurance options, choose the coverage that suits your needs best, and ride safely!