Factors That Impact Your Two-Wheeler Insurance Premium
Have you ever thought why the cost of insuring a bike varies than that of a scooter? Not just this, the premium for insuring two vehicles from similar brand type varies too, ever wondered why? We tell you why. To put it simply, there are a number of factors that influence the cost of your two wheeler insurance policy. Read on to know this in detail.
Type of coverage: There are two types of insurance policies you can insure your bike with one being third party insurance and the other being comprehensive two wheeler insurance. While insuring the vehicle with a third-party insurance policy is mandatory as per the law, it is always advisable to buy a comprehensive policy as it covers damages caused to the bike as well as third party or property. The third-party insurance policy offers protection against damages, injury or death caused to third person or property. Opting for a comprehensive policy will make you shell out an extra premium in comparison to third-party policy.
Modifications: Your bike would certainly look cool if you modify it as per your requirement. But doing so can increase the cost of your insurance policy. This is because when calculating the premium, insurance companies take into account the cost of insuring the modified parts as well since the repair cost of modified parts is high. Hence, it is always advisable to insure the modified parts under electrical or non-electrical section of motor policy
Type of two wheeler: This is one of the most important factors that the insurance company takes into account when calculating the premium for insuring your bike. Since a bike will cost more than a scooter, the cost of insuring the bike is higher than that of the latter.
No claim bonus: No claim bonus is the reward that the policyholder is eligible to receive for every claim free year. The reward ranges from 20%-50% and is offered at the time of renewal. Making a single claim for even minor damage can make you lose out on the accumulated IDV. Therefore, it is always advisable not to make a claim for minor damages as you can save on the premium at the time of policy renewal. Not renewing your two-wheeler insurance within 90 days from the date of expiry will make you lose out on the NCB.
The above factors play an important role in determining the premium you would have to shell out for insuring your bike. Hence, it is important that you be wary of these factors and opt for a two wheeler insurance policy that caters to your requirement and budget.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.