Bharti AXA TWO WHEELER Insurance Factors That Determine Premium Payable for Bike Insurance 9 Feb 2018 What Are the Factors That Determine Premium Payable on Your Vehicle? When you fulfill your dream of purchasing your two-wheeler, your next step should be having it insured. An insurance is a shield to protect it from damage, accidents, thefts, etc. Premium rates depend on several factors which vary between insurance companies. Here are some of the factors that determine the premium rate payable on your two-wheeler insurance. 1. Market Value of the Vehicle The premium for your vehicle usually depends on its market value. An insured must pay yearly premium depending on the Insured Declared Value (IDV) of the vehicle. So, if you have an expensive vehicle, your premium will be higher. The type of fuel used in the vehicle is also a factor to decide the premium. For example, a vehicle using diesel will attract a higher premium compared to a vehicle driven by petrol. 2. Safety Features in Vehicle Safety features in vehicles is another deciding factor for premium. If your car has safety features like GPS tracking, safety airbags, anti-theft devices, etc., it can lower the premium rate. Most insurance companies offer a certain percentage as a deduction on premium, depending on the safety features installed in your vehicle. 3. Usage of the Vehicle The purpose of a car is used by insurance companies as an aspect to determine the premium. Usage is differentiated into long distance, short distance, commercial or personal. For instance, for commercial usage, the premium is usually higher. 4. Individual’s Information A rider’s information is another important factor where past records like drunk driving, accident record, rash riding, etc. are taken into consideration. For instance, if the individual is a rash rider, then there are chances of a higher bike insurance premium. 5. Credit History and Profession Insurance companies have access to credit history and use it as a factor to decide premium. While buying a two-wheeler insurance if you have a strong credit score then you may have to pay less in terms of premium. On the other hand, individuals with lower credit score will have to pay a higher premium. Along with credit score, professions too are a deciding criterion. If you belong to the sales/ marketing sector, commuting becomes a part of life. In such scenarios, vehicles are used to the maximum. People under these sectors pay a higher yearly premium due to risk factors as compared to other jobs. Besides these factors, gender, age, marital status, No Claim Bonus (NCB), etc. too are taken into consideration while determining the premium. Explore Our Products Car Two Wheeler Travel Health Bharti AXA Advantages We've raised the bar in being your Two wheeler's ideal insurance companion 4.2 MILLION POLICIES ISSUED 79 BRANCHES ACROSS INDIA 4500+ CASHLESS GARAGE 24/7 CLAIM ASISTANCE Get Quote Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.