Buying a new bike is a difficult decision as well as an exciting one. ‘Which manufacturer to select?’, ‘Who has a better after-sales service?’, ‘Availability of spares’, ‘What is my requirement?’ are some of the questions that you need to tackle.
Once you are through deciding the bike, next comes the affordability; the price tag of your motorcycle. Can you afford it? The recurring cost of general repairs is something that you must be considering.
After zeroing down by answering these various questions, you approach the dealer and book your brand new bike. This is when you realise buying the bike is not all; there are other formalities too. They are registering the bike and purchasing insurance.
Your dealer generally guides the first insurance policy selection, but wait! If you spend so much time on selecting the perfect bike for you, why not the same for an insurance cover?
Insurance is a mandatory requirement for every vehicle registered in the country. Every vehicle must have aminimum third party insurance for bike. Alternatively, you can buy comprehensive coverage too.
While selecting or even the option to compare two wheeler insurance online is simple as never before, here are some of the factors that influence the premiums for your bike –
Insured Declared Value (IDV)
IDV is the value declared by the policyholder at the time of purchase of your bike insurance. It is approximately equal to the market value. Declaring a higher IDV will increase the premium rates, whereas a lower IDV will result in you bearing financial loss in case of total loss or damage. Thus declaring the right IDV is important when you buy or renew your policy.
Manufacturer of your Bike
The manufacturer of your bike has a direct impact on the premium amount. High-end luxury bikes with higher engine capacities and loaded with a host of features increase the price tag and in turn, your premium amount. On the other hand, a scooter which is generally used for city commutes is fairly priced and has affordable premiums. This is due to a higher IDV of the former whereas a lower IDV of the latter. Thus, the premiums to your bike insurance policy are directly affected by the manufacturer.
Model of your Bike
Each model from the same manufacturer has different premiums. This differential pricing is due to the difference in features and engine capacities among the different models. Say, for example, two models of the same manufacturer differ in their engine displacement and their on-board electronics, the premiums are bound to differ with the prices of these components changing the IDV.
Different engine capacities determine the bike insurance premiums. Under a comprehensive insurance cover, the premiums differ for each other kind of engine displacement capacity unlike slab rates for third party insurance for bike. So when you buy your bike, remember, higher the cubic capacity, higher will be its insurance cost.
Age of your Vehicle
Depreciation is an essential factor in determining the IDV, the resale value, as well as the insurance premiums, and it is in direct relation to the age of your vehicle. As your bike becomes older, its value goes on reducing and in turn affecting your premium.
To conclude, the above factors are responsible for different insurance premiums among different models and make of vehicles. When you select a suitable insurance policy, get comparing different two wheeler insurance rate for the most beneficial insurance cover at affordable prices.