Does High Premium Mean High Bike Insurance Coverage?

To determine the cost of the premium, the insurance provider assesses several risk criteria. So, you must know the following factors behind the premium calculation:

Policy type: The premium for a two-wheeler third-party insurance premium is low as it covers you only against third-party damages and loss. While a comprehensive plan offers wide coverage. So, the type of policy affects premium costs.

Age of your bike: Age is an essential criterion in calculating premium costs. So, before giving you policy rates, the insurer asks you the age of your vehicle. If it is old, the bike insurance premiums are low and vice versa.

Insured Declared Value (IDV) of the bike: At the time of claim settlement, the insurance company pays you the current market value of the bike, known as the IDV of the vehicle. Every year the bike depreciates, which impacts its value. So, it becomes essential to know the IDV before calculating the premium of the insurance for bikes.

Installed anti-theft devices: Anti-theft devices reduce the chances of bike theft. With fewer chances of theft or loss, the claim settlement chances also decrease, putting the insurance company at an advantage. So, installing anti-theft devices leads to premium discounts.

Model and make of the bike: The model and make of the bike impact premiums significantly. A bike insurance policy for an expensive bike has higher premiums for its coverage. But if your bike is not so expensive, the premiums are lower.

Location and weather: If you drive or park your bike at a location prone to natural disasters or theft, the bike insurance premiums will be higher.

Add-on coverage: Having add-on covers give enhanced protection to the bike. So, adding them to your bike insurance policy will increase the premium costs.

No Claim Bonus (NCB): An NCB is an advantage given by the insurance company for claim-free years and safe riding. This is done through reduced costs in the next year’s premium.

The displacement of the bike: The two-wheeler insurance premium significantly depends on the engine capacity of your bike. If the engine displacement is 75cc or less, the premiums would be lower. But, if your bike has a greater engine capacity, you’ll have to pay higher premiums for your bike insurance.

Amount of the deductible: A deductible in insurance policies is the amount you promise to pay at the time of claim settlement. So, the higher the deductible, the lesser will be the premium and vice versa.
Apart from the above factors, discounts, riding frequency, riding skill and experience of the driver, and modifications in the bike may impact the two-wheeler insurance premium.

The factors discussed above impact the premium of a bike insurance policy. So, a high premium would not always give you high coverage. A lower premium policy may offer more coverage than a high premium plan depending on the above factors.

So, if high insurance premiums do not necessarily give more coverage, what you must do to reduce the premium costs of the bike insurance policy. Read ahead and find out how you can make your bike insurance policy cost-effective.

Install anti-theft systems: By installing ARAI- approved anti-theft devices on your bike, you can benefit from lowered premiums due to lower chances of a claim. The devices include alarms, disablers, immobilisers, and GPS tracking systems.

Make bike insurance premium comparison:Insurance companies offer different coverage and discounts. So, before choosing a bike insurance policy, compare two-wheeler insurance policies online.

Use the bike insurance premium calculator: The online tool helps you assess the cost of the premium while buying a bike insurance plan. This way, you can calculate the premium yourself and make a cost-effective decision.

Choose a long-term policy: Premiums usually rise when you renew your policy every time. Thus, you should buy a long-term bike insurance policy to reduce premium hikes. Also, with a long-term policy, you may avail of discounts from the insurance provider.

Do not raise small claims: Insignificant claims in the policy term may lead to higher premiums upon policy renewal. But with no small claims in your policy tenure, the insurance company offers you the benefit of a No Claim Bonus extending up to 50%, which reduces the policy cost.

Choose a higher deductible: By opting for a higher deductible at the time of claim settlement, you can significantly lower your premium costs. This is due to lesser contributions by the insurance provider.

Select add-on covers according to needs: Add-on covers increase the cost of a comprehensive bike insurance premium. So, while buying an add-on cover, analyse why you need it. Avoid buying unnecessary coverage options as they will lead to more insurance costs.

It is true that a comprehensive plan has higher premiums than a third-party cover and offers more coverage. But a higher premium doesn’t always lead to more coverage. The premium depends on several factors and not only the extent of the coverage of the plan. So, now you know how the premium is calculated, consider buying a suitable bike insurance policy that is economical and offers adequate coverage for your motor vehicle.

With Tata AIG, you can buy the right insurance for your bike designed to suit your needs and budget. To calculate the bike insurance premium online, you can use the Tata AIG bike insurance premium calculator before purchasing a plan. The tool helps to know the factors affecting your premium costs and compare two-wheeler insurance to choose the best suitable policy. You can also buy bike insurance online with Tata AIG within a few minutes.