Factors Affecting Two Wheeler Insurance Premium
Motorbikes are used by many people in the cities as well as the rural areas. It is not only a cheaper vehicle to use for daily commute, but it also offers you a convenient way to travel quickly through traffic and narrow streets.
Being a machine, every motorbike is subjected to wear-and-tear and is at a risk of damage due to accidents or other apathies. To avoid the financial losses caused by such uncalled damages, it is recommended to buy two wheeler insurance policy first. This policy is provided by several insurers, but the variety of covers, and diversity of premium options often confuses many insurance buyers.
For a new two wheeler policy buyer, it is difficult to estimate the amount of premium paid to the insuring company. So, we have approached several experts to find out the factors that affect this premium. They are as follows:
The number of kilometers you ride a bike directly affect the engine life and the well-being of your bike. Depending on the kilometres ridden, bike insurers modify the payable premium. Lesser the number of miles ridden better is the condition of the bike, and higher are the chances of availing discount over the premium paid.
Insured Declared Value (IDV)
This is the value for which you can claim insurance under the two wheeler insurance policy. It is the contemporary valuation of your bike and reduces every year. It is strictly based on the manufacturer’s selling price list, and goes on dropping as follows:
Cubic Capacity of Engine
The rate of premium is directly proportionate to the cubic capacity of the engine the motor bike is equipped with. Higher the cubic capacity of the engine, greater is the wear and tear, and higher will be the repair costs. So, insurers raise the premium amount.
This is the basic cover available with all two-wheeler policies. Depending on the amount of third-party cover you subscribe, the premium gets adjusted. Thus, it is recommended to select this coverage wisely.