When people purchase a bike, they usually don’t think much or give importance to the topic of buying a two wheeler insurance policy. However, you must know that it is essential that you first do your research, compare multiple policies online, and then buy adequate insurance coverage for your bike.
Some people avoid buying a two wheeler insurance policy because they think that the process is long and tedious. On the other hand, you can buy the policy on your own without the assistance of an insurance agent. The main aspect to consider while buying a two wheeler insurance
is that it should fit in your budget and provide sufficient financial coverage at the same time. It wouldn’t be wise to spend a fortune on buying insurance either. You need to figure out your needs and balance the cost out to avail optimal coverage at the best price.
Ever wondered why insurance cost differs from person to person and how one’s bike affects its insurance? Here’s why.
1. Model of the bike
The price of each two-wheeler varies and your insurer considers this at the time of offering you the policy. Hence, similar vehicles have different insurance premium amount. Additionally, for bikes that are older, insurers charge a higher premium as these vehicles are more prone to damage and disrepair.
2. Age of the bike
As with every asset, your bike also ages with time and gets old. This is called depreciation. As such, the value of your vehicle also depreciates with time. This decrease in value over time also cuts down the premium cost of your insurance policy. However, you can avail the full compensation for your vehicle’s parts during repairs if you choose to opt for zero dep insurance for bike
3. Manufacturer & brand
The brand of your bike has an impact on the price as well as the bike insurance premium amount. People who go for luxury bikes must realize that it increases the premium amount they would have to pay on two wheeler insurance as well. Similarly, if you own a scooter that does not cost much, it will have a comparatively lower premium.
4. Insured Declared Value (IDV)
The Insured Declared Value (IDV) is the maximum sum insured you will receive for the two-wheeler under the insurance coverage. It is the current market value of the two-wheeler. You must arrive upon this number while purchasing the insurance policy. A high IDV increases your policy cost as the insurer would have to pay a higher amount in the case of theft or total loss. Contrariwise, a lower IDV decreases the claim amount that you receive in case of total loss or theft and, hence, attracts lower premium. Therefore, it is essential to completely understand what is IDV in bike insurance
so that you set the correct IDV every time you go to renew the policy.
5. Engine of the bike
The engine is said to be the heart of a bike. Hence, it is advised that you take good care of your bike’s engine so that it functions efficiently. The cubic capacity (cc) of your bike’s engine also has a direct impact on your premium cost, i.e. the cost to insure bikes with higher cc will be high too.
Purchase two wheeler insurance online
The internet has made life easier than it ever was. You can purchase two wheeler insurance online in just a few clicks today. Also, it becomes easier for you to compare the policies available online along with their features and cost. You even get better deals after comparing various policies and purchasing two wheeler insurance coverage that fits in your budget.