In India, almost every household is the proud owner of a two-wheeler. Riding a two-wheeler makes weaving in and out of traffic an absolute breeze. Sadly, what a lot of people forget is that their two-wheelers need to be insured to be ridden legally. When you purchase a new bike, you're likely to get insurance for the year as well. But, if you forget to renew your policy at the end of a year, you will find yourself on the wrong side of the law. This is because according to the Motor Vehicles Act of 1988, having at least third-party insurance is mandatory for you to legally operate your vehicle on the road. But, a third-party policy might not be enough. If you really want to protect yourself and your two-wheeler, it's a good idea to purchase a comprehensive two-wheeler policy.
But, before you go out and buy the first policy you find, you need to do a little research and make sure you've picked the best policy for your needs. To help you understand what affects the cost of your two-wheeler insurance policy, have a look at these important factors that could have a significant impact on your two-wheeler insurance premium:
1. The Rider's Experience
It may seem slightly absurd, but your insurance provider may opt to provide you with a premium quote based on how old you are and how many years of experience you have in riding your bike. Thinks like your lifestyle could also play an important role. If you're somebody who enjoys riding your bike off road for long periods of time, you may find that this could influence your insurance premium.
2. The Insured Declared Value (IDV)
The IDV is the actual value of your vehicle. As the years go by, the total value of your bike depreciates, so your IDV could decrease over time, which will probably reflect in your premium. Things like your bike's age, the number of kilometres you've ridden and the way you maintain your vehicle will affect your overall IDV and in turn, you two-wheeler insurance premium.
3. Engine Capacity
One of the most important factors that affect the premium amount is the engine capacity. It is the heart of the vehicle whose size is measured in cubic capacity (cc). IN all likelihood, a bike with a capacity of just 75cc may have a lower premium than one with a capacity of 500cc. Of course, if the 75cc bike has been highly customised or imported, the difference in premium may not be all that great.
4. Age of the Vehicle
While you're sourcing quotes for your two-wheeler insurance, the company will ask for your vehicle's age to produce an accurate quote. Since a new two-wheeler is generally more expensive, the premium may be higher as compared to an older two-wheeler.
5. The No Claim Bonus (NCB)
For every year that you don't make a claim against your insurance policy, you can enjoy a reward known as an NCB. After a few good claim-free years, you could enjoy an NCB of 50%. This means that you will only have to pay 50% of your premium for another year's cover.
It's important to remember that this list is not at all exhaustive. Things such as the add-on covers you choose and where your vehicle is registered could also have an impact on your two-wheeler insurance premium. But, now that you know what could affect your two-wheeler insurance premium, you can continue your search for the best insurance policy for you and your vehicle.