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What Factors Determine The Price Of My Two Wheeler Policy


Do you ever wonder what influences the cost of a bike insurance online policy? Why is a particular type of policy costlier than the other, and vice-versa? While comparing two-wheeler insurances based on cost is a common thing do to, not many of you may know the reason behind the pricing of a policy. So, to clear the cloud, in the post below, we mention the factors that influence the cost of a 2 wheeler insurance policy.

1.   Type of Insurance Cover

Two major types of insurances are for third-party liabilities and comprehensive covers. Lower premium is applicable for liability only policy because the insurance only covers damage to a third-party or its property. It does not cover the cost of the damage to the insured’s two-wheeler (TW). However, comprehensive two-wheeler insurance costs more because it covers third-party liability as well as total loss or damage to the policyholder’s TW due to natural or man-made calamity, such as vandalism, theft, etc.

2.   Type of the Bike

As the cost of each vehicle depends on its features and qualities, the insurance price of each type of motorcycle also differs accordingly. The major factor that determines the cost of the policy is the cubic capacity of the bike’s engine. Higher the cubic capacity, the greater is the premium cost. Usually, the cubic capacity of motorcycles and sports bikes is higher than the other two-wheelers. The make/model/class of the vehicle, its place of registration and manufacturing year, number of miles used, fuel type, and accessories, determine the price of the related insurance policy.

3.   Price of the Two-Wheeler

The functionality and brand of the TW influence its price. The higher the cost of the vehicle, the greater is the price of its insurance policy. Usually, the cost of bike insurance online is 2% to 3% of the vehicle’s market value.

4.   Vehicle Modifications

Many of you may get modifications for the vehicle, especially to improve the motorcycle’s performance and aesthetics. However, certain modifications may impact insurance cost. Modifications such as the one to enhance the speed of the vehicle can increase the cost of the premium.

5.   Installed Security Devices

A claim on 2 wheeler insurance settles only after the insurer is satisfied that you took enough measures to protect the vehicle against theft. This is why you must not leave the keys in the ignition or park the vehicle in an area that poses a risk of theft. To prevent stealing, install an anti-theft device on the motorcycle. These security measures reduce the risk of damage/theft of the motorcycle, and in turn reduce the cost of the insurance.

6.   Riding Skills and History of Claims

Your riding skill will influence the cost of the bike insurance you take. Incidences of accidents may decrease if a biker is careful while riding a motorcycle. Fewer accidents mean lower damage to the insured and his/her TW. Less number of claims on your existing or previous vehicle insurance policies will decrease the cost of the insurance, and vice-versa.

7.   Add-On Covers

If you opt for extra coverage for bike insurance online, then it can lead to a higher cost of the policy. People usually opt for add-ons under a comprehensive two-wheeler insurance policy. The add-ons depend upon personal requirements, such as; an option of roadside service or 24 x7 services for the vehicle, etc. Thus, select an add-on carefully, as it may increase the policy’s cost.

8.   No Claim Bonuses and Memberships

You are eligible for a No Claim Bonus (NCB) when you do not raise a claim on your 2 wheeler insurance in the policy’s previous year period. You can receive up to 50% discount on the insurance premium in case of an NCB. Insurers may also offer discounts on premiums if you are a member of particular organizations, such as the Automobile Association of India.

9.   Renewal of the Policy

It is advisable to renew the policy in time to avoid expenses arising from damage to the vehicle or any harm to the insured. The insurer may offer a 30-day grace period for the renewal. If you miss out on renewal even then, you will have to purchase a new insurance policy. As you may not be eligible for an NCB, the price of a fresh policy could be higher than the previous policy.

To Conclude

Study the above-mentioned pointers carefully to understand how to get the best out of your TW insurance policy and keep the insurance cost to the minimum.

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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 Insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice for Travel/Health/Motor. 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.

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