Variables that Impact Premiums on Two-Wheeler Insurance
Two-wheeler insurance is based on numerous factors. Insurance companies take into consideration the risk exposure dependent on various parameters like the usage of the bike, make and model of the vehicle, where the applicant resides, age and profession of the applicant, etc.
While the IRDAI regulates the tariffs levied by insurance companies to protect a policyholder’s interest, here’s a quick rundown of the variables that impact a bike’s insurance premium:
Make and model of the two-wheeler
For basic bikes, the insurance premium would be low. Whereas for high-end bikes, one would need an enhanced insurance policy. The premium would start rising as the scope of coverage widens. The insurance premium is higher for a luxury sports bike, simply because its parts cost more, and it would be more expensive to repair damage on a high-end bike as opposed to a low-end one.
Year of manufacture
The rate of depreciation in the value of a vehicle increases with the age of the vehicle. The IDV (Insured Declared Value) will be low if you decide to buy a two-wheeler insurance policy for an old bike.
The engine capacity of your bike is taken into consideration by two-wheeler insurance companies for the calculation of a policy premium. One can calculate the insurance premium for their bike if they know the size of the engine.
Your premium will be high if you are situated in a metropolitan city where the traffic density is high. The premium for your bike insurance policy will increase if the risk exposure is high. Whereas, the premium might be low if you are located in rural areas.
Your premium can also be impacted by the security features that are installed in your two-wheeler. The risk exposure starts decreasing if your vehicle is well secured. Security features also reduce the risk of theft and lower the impact of potential damage.
Age of the vehicle owner
The age of the vehicle owner also has an effect on the premium. A young rider would have to pay a higher insurance premium than a middle-aged person. This is because compared to a teenager, an older person is perceived as a responsible driver by insurance companies.
A motorcycle insurance policy is formulated after taking into consideration numerous factors. Therefore, it is essential that you choose the right vehicle insurance policy like Chola MS, so that it reduces your expenses.