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Why is Sport Bike Insurance So Expensive?
- Author :
- TATA AIG Team
- Published on :
The allure of a sports bike is undeniable. For most bike enthusiasts across the nation, owning a sports bike in India is a dream. However, sports bikes can be just as dangerous as they are captivating and so it becomes essential to secure your beloved bike with comprehensive two-wheeler insurance. But when sports bike owners check the sports bike insurance quotes, they may realise that their bike insurance is more expensive compared to the insurance for ordinary two-wheelers. However, there is a logical explanation as to why the sport bike insurance cost is higher when compared to other two-wheelers. But before we learn why sports bike insurance is higher, let’s first understand how sports bikes are different from their ordinary counterparts.
Difference Between Sports Bikes and Normal Bikes
A sports bike is designed to be a high-performance vehicle with a relatively high engine capacity ranging between 600cc to 1000cc. What characterises a two-wheeler as a sports bike are features such as high speed, heavy engine, greater focus directed to braking and acceleration, and a superior design. Sports bikes are also known to compromise on fuel efficiency and comfort, replacing them with a luxurious riding experience through responsive acceleration and high speed. However, since sports bikes are a lot more expensive than their regular two-wheeler counterparts, the sport bike insurance cost also tends to be on the higher end. Here are the ex-showroom prices of the most popular sports bikes in India:
Keeway K300 R: ₹2,99,000
Yamaha R15 V4: ₹1,79,749
BMW G310 RR: ₹2,85,000
How Much is Sport Bike Insurance?
It is no news that it is expensive to own a sports bike as it belongs in the category of luxury vehicles. And so, if the vehicle bears any damages, the cost of repairs will naturally be exorbitant. However, the standard coverage that is offered under regular insurance for two-wheeler is insufficient to pay for the damages that a sports bike incurs. Yet, as the owner of a sports bike, you will require comprehensive two-wheeler insurance along with certain riders to secure your vehicle as well as ensure your own safety.
Sports bike insurance is also higher because it is influenced by the current market value of the bike. The value of the bike is directly proportional to sports bike insurance quotes. Basic third-party insurance for two-wheeler will be inadequate coverage for your bike as you will be unable to fortify its security with add-ons. This would mean that if the bike incurs any damages, the owner will have to pay for them from his/her pocket.
Factors Influencing the Premium of Sports Bike Insurance
The premium on the insurance of a sports bike is influenced by certain important factors. Understanding these factors can help you find cost-effective insurance for your sports bike in India. To calculate how much is sport bike insurance going to cost you, use the free bike insurance calculator by Tata AIG and consider the below factors for an informed decision:
Type of Coverage
The kind of two-wheeler insurance you choose will impact how much premium you will be liable to pay. It is therefore important to carefully analyse your insurance requirements and purchase a cover accordingly. According to the Motor Vehicles Act, a third-party cover that will pay for the damages to the third party is mandatory. However, it is always advised to invest in comprehensive insurance for two-wheeler that will also compensate for the damages to your own vehicle. The premium for a comprehensive cover is slightly higher than for a basic third-party cover.
Features of the Bike
Your insurance provider will consider all the aspects and characteristics of your sports bike before quoting a suitable cover. The insurance company will most likely check your bike’s manufacturing year, the age of your bike, its engine capacity, and the make and model of your vehicle while determining the premium amount. Additional factors considered by the insurer include fuel type, place of registration, current showroom price, etc.
Insured Declared Value (IDV) of the Bike
IDV refers to the amount the insurer is liable to pay to the policyholder in case of theft or total damage to the insured vehicle. The higher the IDV, the higher the premium payable by the insurance seeker.
The IDV is calculated by checking the current market value of the bike, and because it is a depreciating asset, the IDV will keep changing. It is advisable to choose the IDV that is closest to your sports bike’s market value for fair compensation.
The alterations and modifications you make to your bike to enhance its performance and appearance will also make it more expensive. This, in turn, will also impact your insurance cost. You must prudently modify and subsequently secure all the parts of your vehicle through adequate insurance.
Add-ons or riders are meant as additional security to your vehicle, but when you buy a sports bike, it is important to protect it adequately. Insurance providers have several riders that you can add to your comprehensive insurance cover to strengthen it further. Some of the common ones include:
Zero-deprecation cover: The deprecation amount will not be deducted when you raise a claim
Return-to-invoice cover: If your vehicle is lost or sustains total damage, this cover compensates the insured member with the invoice cost
Emergency medical expenses: In case of an accident, this rider will reimburse you for the cost of treatment
Roadside Assistance cover: If your vehicle breaks down, you can reach your insurance provider, and they will send professional help for instant repairs
Tips to Reduce the Insurance Premium of Your Sports Bike
Here are some quick tips to help you make the best out of your two-wheeler insurance policy and ensure you buy a cost-effective cover:
Always compare insurance policies before selecting a cover
Avoid raising a claim if the expenses are minor because raising a claim means you will not get your no-claim bonus at the time of policy renewal
Analyse your insurance requirements and only choose the add-ons that are truly required
Install ARAI-approved anti-theft devices on your bike for a lower premium
Ensure timely policy renewals
Owning a sports bike is truly thrilling. Therefore, one is advised to exercise caution while riding. And because we cannot predict what will happen when we are on the road, it is important to invest in comprehensive two-wheeler insurance for complete safety.
Disclaimer: All the bike prices and other information listed above pertain to a specific city and vehicle model. Since this information is subject to change, it is advisable to check the latest information before purchasing a vehicle or an insurance policy.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.