Finance

What Are the Elements That Come Together to Determine Your Bike Insurance Premium?

0
What Are the Elements That Come Together to Determine Your Bike Insurance Premium

Having a bike insurance policy is a legal requirement. The Motor Vehicles Act of 1988 lays down this requirement for all two-wheelers to have an insurance cover. But apart from legal requirement, a bike insurance policy has many benefits. To understand this, you first need to know the two types of bike insurance policies – third-party and comprehensive plans.

A third-party or liability-only policy is the minimum requirement that you need to have. It protects you against the liabilities that are payable due to damages or injuries faced by third persons, whereas comprehensive plans provide broader coverage. These plans include protection against the damages faced by your bike during an accident. While third-party policy premiums are set and determined by the regulator, the Insurance Regulatory and Development Authority of India (IRDAI), premiums for comprehensive policies are based on various factors. When you buy a bike insurance online, here are some elements to remember that impact your premium. Let’s have a look –

Type of insurance cover: Bike insurance price is based on the type of insurance cover that you opt for. As discussed above, the two types of insurance policies determine what shall be the premium of your policy. With a limited scope, third-party policies have affordable premiums. Since comprehensive plans are broad in its coverage, the bike insurance price increases accordingly.

Model and make of your bike: As you might notice, every model of the bike differs in price based on the features it has to offer. Similarly, the insurance premiums for such plans also differ based on the model and variant of your bike. Further, higher the cubic capacity of the engine, higher will be its premium cost.

Modifications to your bike: The premiums for a specific model of the bike is fixed for stock variants of the vehicle. Any modifications to your bike, either cosmetic or performance oriented, can impact the premium. So, if you plan to make any such modifications, remember the premiums of your insurance cover might increase.

Add-on riders: Comprehensive bike insurance plans have the facility to purchase add-on covers unlike a third party bike insurance policy. These add-on covers can be used to customize your insurance coverage based on your requirements. While one may have different requirements, add-ons are an effective way to ensure the right customization is possible by you. One thing to note about add-ons is since they are additional benefits, they increase your premium too.

Deductibles of your policy: Deductible is that amount which needs to be paid by you, the policyholder, when making a claim. Every bike insurance policy has two types of deductibles – one is the compulsory and other is a voluntary one. While a compulsory deductible is regulator requirement, not much can be done about it whereas the voluntary deductible impacts your insurance premium. The higher component of voluntary deductible you opt, the lower is the policy premium. These are some of the elements that determine your bike insurance price. Once you are aware of these factors, selecting a bike insurance policy that offers a comprehensive coverage at pocket-friendly price can become a breeze. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

mm

Pradhan Mantri Awas Yojana: 4 ways to find your name on PMAY list

Previous article

Know Distinct Environmental Benefits Of Metal Recycling

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Finance