ATK
New Delhi [India], March 26: Do you know that two bikes of the same brand can also have a different premium? Yes, that's right. The premium of a bike insurance plan and car insurance price depends on many factors. Depending on these factors, the premium rates will vary. To help you out, we have enlisted some factors affecting bike insurance premium rates. Continue reading to learn more.
What are the Factors Affecting Bike Insurance Premiums?
Whether you are buying bike insurance online or through an agent, you must be aware that there are different factors that play a role in determining the premium rates. Some of the factors affecting bike insurance premiums are as follows:
1. Type of Insurance Plan: The premium rates of a bike insurance plan are dependent on the type of plan you are buying. Typically, when you choose to buy a comprehensive plan, the premium will be higher than third-party and own-damage bike insurance plans. So, be mindful of the type of plan that best suits your needs and buy a plan accordingly.
2. Cubic Capacity: The cubic capacity or CC of the bike is another important factor affecting bike insurance premiums. It is the engine size that will largely determine the bike insurance premium. The more the cubic capacity of the bike, the more will be the premium of your chosen bike insurance plan.
3. Age of the Bike: The age of the bike also largely affects the premium rates. When the bike gets older, the bike insurance premium decreases. This is because old bikes also have lesser market value, and thus, owing to this depreciation, the bike insurance premium will consequently decrease.
4. Insured Declared Value (IDV): The Insured Declared Value or IDV of the vehicle also determines the premium of bike insurance. IDV is basically the market value of the bike, and thus, when the IDV changes, the bike insurance premium rate will also change.
5. Make and Model: The premium rates of sporty bikes are higher as compared to the others. The reason behind this is that these bikes come with a higher Insured Declared Value, thus increasing the premium.
6. Add-ons: Add-ons in bike insurance let you increase the existing coverage by paying for additional premium. Some of the add-ons available in bike insurance are zero depreciation cover, consumables cover, engine protection cover, etc. So, remember that when you include these add-ons in your plan, the premium will increase.
7. No Claim Bonus: No Claim Bonus or NCB in bike insurance refers to a discount that is given if the policyholder raises no claim in a given year. Policyholders who have NCB in their previous bike insurance plan can add the NCB to their new plan to avail themselves of discounts on bike insurance premiums.
8. Aesthetic Features: If you make any modifications to your bike, such as adding sporty headlights, then the bike insurance premium will be higher.
9. Anti-theft Devices: Installing anti-theft devices that reduce the chances of a bike getting stolen might help lower the bike insurance premium. This is because in such a case there will be fewer chances of your bike getting stolen, reducing the chances of raising bike insurance claims. Thus, the bike insurance premium in this case is generally lower.
10. Geographical Location: If your bike is getting insured in an area that has heavy traffic or is prone to natural hazards, then in such a case, the bike insurance premium will be higher. The premium will also be higher if there is a high crime rate in that location.
Take Away
So, consider these factors when buying a bike insurance plan as they will affect the premium rates. Moreover, do not forget to renew your bike insurance on time and get continued financial protection against uncertainties.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)