Buy Critical Factors You Should Know that Affect Two-Wheeler Insurance Price

By Megha Jain, Content Writer   |  Tuesday, 25 June 2024, 04:49:44 PM IST

Buy Critical Factors You Should Know that Affect Two-Wheeler Insurance Price

Understanding the driving factors behind two-wheeler insurance pricing is absolutely essential for all bike owners. Several key factors influence the cost of coverage and impact both the affordability and adequacy of the protection it provides. 

Investing in two-wheeler insurance can be a daunting task without a concise understanding of these factors. Once you understand what bike insurance is, the next question you should ask is, what is bike insurance pricing exactly influenced by? Read on to know more about this.

 What Affects Two-Wheeler Insurance Price?

1. Anti-theft Precautions

  • Taking precautions to ensure that your two-wheeler is protected against any theft attempts impacts the safety as well as the insurance costs for your bike.
  • Insurers evaluate the security measures you have taken to reduce the chances of theft. This helps them assess the situation and understand how mindful you are with your vehicle.
  • Investing in anti-theft devices is considered proof of your vigilance and effort to keep your bike safe. This makes insurers aware of the precautions that you take during a new purchase or two-wheeler insurance renewal, in turn leading to reduced insurance costs.

2. Add-ons

Incorporating add-ons like return-to-invoice Cover and depreciation allowance can help enhance the coverage of the two-wheeler insurance you purchase. However, they add to the cost of the bike insurance policy.

Therefore, it is advisable to select only the required add-ons to the policy. Making uninformed decisions regarding these extra covers can lead to unnecessary extra charges, which directly impact the overall cost of your bike insurance.

3. Bike Modifications

Bike modifications may enhance the aesthetics and performance of your bike, but they can also increase the risk of financial loss if any modified parts are damaged.

Mitigating the financial risk in such situations usually requires every modified part to be insured separately. This naturally increases the premium rates of your bike insurance as well. 

4. Type of Bike Purchased

The type of two-wheeler you drive impacts your insurance premium. Just like how different bikes have different prices, bikes with more powerful engines or premium features cost more to insure.

A higher cubic capacity of a bike, for instance, will lead to higher insurance premiums due to the overall quality of the engine that would cost more for maintenance or replacement in the event of a road incident.

5. Anti-theft Precautions

  • When it comes to two-wheeler insurance renewal, timely intervention is key to making a financially beneficial purchase. Most insurance providers offer a 30-day grace period for renewal.
  • Keeping track of your renewal and making timely renewal payments can save you from unnecessary expenditures.
  • If you fail to renew your policy during this period, you will need to purchase a new one, as bike insurance renewal after expiry requires a fresh policy. Not only will a new insurance policy cost more, but you will also have to forfeit any of your accumulated No Claim Bonus.  

 Conclusion

To conclude, understanding the driving factors behind your two-wheeler insurance price can help you make financially aware decisions and avoid unnecessary expenses. Hence, the next time you research for a new two-wheeler insurance online, considering all the factors mentioned above will not only give you more insight into the type of insurance you need but also help you buy the best two-wheeler insurance within your budget for your bike.

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