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The Factors That Go Into Calculating Your Two-Wheeler Insurance Premium


Written by Saad Ahmad

Updated Apr 30, 2022

The type of coverage you believe your car requires will be used to determine the insurance premium quotation you will be required to pay.

The type of coverage you believe your car requires will be used to determine the insurance premium quotation you will be required to pay. This is especially true when choosing bike insurance coverage. As a result, it's critical that you figure out what kind of coverage you want or need in your situation. Every two-wheeler is required by law to obtain third-party insurance as a minimum level of protection. However, it is strongly encouraged to go beyond this bare-bones coverage, as it provides little long-term protection to the actual client.

The Factors That Go Into Calculating Your Two-Wheeler Insurance Premium

Factors That Influence Cost of Two-Wheeler Insurance

The following are the elements that influence the cost of two-wheeler insurance:

1. Age of the Owner of a Two-Wheeler

According to track data, two-wheeler riders under the age of 25 are more likely than riders over the age of 25 to be engaged in an accident or other incident. As a result, motorcyclists between the ages of 18 and 25 must pay a greater price for their two-wheeler insurance than others.

2. Type of Fuel

Two-wheelers that operate on CNG (Compressed Natural Gas) must pay a greater price for a bike insurance policy than two-wheelers that run on gasoline or diesel.

3. Place of Residence

Insurers use the place where the insured's two-wheeler will be used most frequently to determine the rate. Riders in places with a greater traffic tendency and high danger, such as metro cities, are paid a higher premium than those riding their two-wheelers in areas with a lower traffic tendency and low risk.

4. Insured Declared Value (IDV)

The Insured Declared Value is the highest amount that an insurance provider will pay to the insured's two-wheeler owner in the event of theft or constructive complete loss. The IDV may differ from one policyholder to the next according to the brand, model, manufacturer's selling price, RTO information, and other factors. A high IDV is accompanied by a high premium.

5. Capacity Cubic

The cubic capacity of the vehicle is another aspect that influences the own damage premium of a two-wheeler insurance policy. A two-wheeler with a larger cubic capacity is charged a higher premium than one with a smaller one.

6. Other Considerations

The manufacturer, model, and variation of a two-wheeler have an impact on the premium of a two-wheeler insurance plan. Manufacturing year for two-wheelers: A new two-IDV wheeler's value is higher than an old two-IDV wheeler's value. As a result, a new two-wheeler has a larger premium than an older two-wheeler.

7. No Claim Bonus (NCB)

The reduction that a policyholder receives for not filing even a single claim during the prior insurance policy for their two-wheeler is known as the No Claim Bonus.

8. Anti-Theft Devices that Have Been Approved by The ARAI

Vehicles with anti-theft systems authorized by the ARAI (Automotive Research Association of India) are eligible for a 2.5 percent discount on their insurance rate.

Take Away

To get the most out of your two-wheeler insurance, make sure you compare all of the available policies to get the best deal. Before choosing a two-wheeler insurance policy, ask your insurer about the circumstances that determine the premium price. It's not difficult to locate a two-wheeler insurance calculator, but selecting a decent one is. You can compute the yearly cost on your own now that you understand the main components that go into creating the two-wheeler insurance premium estimate.

Also Read: Factors Affecting the Cost of Your Reliance Car Insurance Policy


Written by Saad Ahmad

Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Read More


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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