Two Wheeler Insurance Prices Explained
Sep 17, 2020

What Influences Bike Insurance Prices?

Due to the convenience and accessibility, a majority of Indians prefer investing in a two wheeler. However, solely purchasing a two wheeler does not end your job there. The task lies in selecting the right insurance plan for your vehicle. The best way to choose a plan is by opting for two wheeler insurance online , which is a hassle-free and comfortable process. Take a look at this guide for a better understanding on bike insurance prices and what influences them: What is two wheeler insurance? Typically, a two wheeler insurance plan covers your vehicle during mishaps like accidents, natural disasters, and thefts. Additionally, it also insures the third party from unfortunate events like injuries or any other types of damages. Due to their provision of a safety net against all of these events, an investment in a two wheeler policy is considered as the safest option. Due to the rapidly increasing rate of accidents taking place on roads, everyone is in a desperate need of a two wheeler insurance policy. The prime motive of this policy is to help the customer by covering their financial losses at times of any mishap involving their two wheeler vehicle. Apart from this, it makes provision for two different types of covers for its customers.
  • For unforeseen events, it provides a cover against any kind of damage to either the vehicle or the rider.
  • For third parties, it provides a cover against any kind of financial liability involving injuries.
What is the difference between a comprehensive and a long-term third party insurance plan? A two wheeler insurance policy comes in two different forms. While the first one is the comprehensive two wheeler insurance policy, the other one is the long term third party two wheeler insurance plan. Bike insurance prices for each of the policies vary. So if you’re wondering about the differences between these two, then take a look at the differences specified below:
Key Differences Comprehensive Two Wheeler Insurance Long Term Two Wheeler Third Party Plan
Coverage 1 year 5 years
Renewal period Once in a year Once every five years
Premium A rise in the third party two wheeler insurance prices, comprehensive premium varies as per IDV and factors in depreciation   Note - Third party premium rises only if it is mandated by IRDA During the tenure of the policy, there is no effect in the third party premium and you pay current third party rates for the entire tenure
The benefit of No Claim Bonus (NCB) As per tariff and total accrued percentage over time No NCB benefits
NCB benefit after the provision of a claim After one claim, the NCB value comes down to zero No NCB benefits
  What are the factors that influence the 2 wheeler insurance prices? The premium of every insurance policy lays the foundation of the entire policy. Before buying a new policy, the investor must consider the premium rate. Knowledge of the factors that affect the premium can help investor to avail bike insurance at low prices . Take a look at these factors mentioned below that determine two wheeler insurance prices:
  1. Value of coverage
The two wheeler insurance policies are categorized into two main types: Third party coverage and comprehensive coverage. A buyer must opt for any of these two policies based on his needs and preferences.
  1. Insured Declared value
Initially at the time of purchase, the insurance companies agree to pay a certain claim amount. The amount permitted by the company at the time of claims is termed as Insured Declared value (IDV). Moreover, these IDVs determine the your bike insurance prices.
  1. No Claim Bonus
If a policyholder does not make claims for an entire year or consecutive years, the insurance companies provide him with No Claim Bonus (NCB). Additionally, these NCBs are another way of opting for two wheeler insurance best prices. Now that you know all the details of what goes into your bike wheeler insurance prices and the specifications of selecting a plan, are you ready to invest? A recommended step to evaluate bike insurance prices and according to your desired plan would be to utilize an online two wheeler insurance premium calculator .

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