Factors Affecting Bike Insurance Premiums in India

There has been a significant increase in two-wheelers in India, which has enhanced traffic, leading to higher accident risks. Hence, the Indian government required all two-wheeler owners to get a two wheeler policy. Have you ever wondered why different vehicle owners pay different premium amounts even if they own the same model? Several factors influence vehicle insurance premiums in India. This blog will discuss the factors affecting bike insurance premiums in India.

7 Crucial Factors Affecting Your Bike Insurance Premiums in India

The following are the different factors that can affect your bike insurance premiums in India:

1. Bike Price and Type

Just as the price of each bike varies, so do its insurance premiums. One key factor that insurance companies consider when calculating premiums is the vehicle’s cubic capacity (cc).

Generally, a higher engine capacity results in a higher insurance premium payment. The Indian market offers a range of high-end bikes, which typically have higher premiums than standard models.

2. Type of Coverage

In India, you can choose between two main types of motor insurance: third-party and comprehensive. While 3rd party bike insurance is legally required and covers damages or injuries to others involved in an accident, it doesn’t cover your own vehicle or injuries.

A comprehensive policy provides broader protection, covering both third-party liabilities and damages to your own vehicle or injuries to yourself. Although you can select either option, a comprehensive policy is generally recommended for the added peace of mind and financial security it provides.

3. Add-On Covers

You can select multiple add-on covers in your insurance plan, which you can customise to enhance the protection of your bike and create a comprehensive insurance policy. Various add-on covers are available, such as Zero Depreciation Cover, Roadside Assistance Cover, Emergency Medical Expenses Cover, Consumables Cover, and more.

While add-on covers are highly beneficial, they come with an additional cost, increasing your overall premium. Therefore, it is advisable to choose only the essential add-ons that contribute to the overall maintenance of your bike.

4. No Claim Bonus

You can use the No Claim Bonus (NCB) benefit when you opt for bike insurance renewal. A discount is provided for each claim-free year. If you renew your bike insurance and have not made any claims in the past year, you are eligible for a discount on your premium.

The NCB is a reward from the insurance company for being a responsible rider. If you have accumulated NCB, you can significantly reduce your two-wheeler insurance premium at the time of renewal.

5. Anti Theft Devices

If your bike is stolen, the insurer will assess whether you took adequate safety precautions to prevent theft. Your claim will only be processed if the insurance company determines that you were not negligent, such as leaving the keys in the ignition or parking in high-risk areas.

Hence, to minimise the risk of theft, consider installing an anti-theft device on your bike, which may also reduce your insurance premium.

6. Riding Skills

The expertise and attentiveness of a bike rider are crucial factors in ensuring safety on the road. If a rider is not cautious while operating a motorcycle, the likelihood of accidents rises significantly. Such accidents can damage the insured bike, and in cases of severe damage, the rider may need to file a claim against their insurance policy.

However, a history of frequent claims can result in higher insurance premiums over time. Therefore, responsible riding is essential for both safety and cost management.

7. Voluntary Excess

In bike insurance, there are two types of excess: compulsory and voluntary. Compulsory excess mandates that you pay a specific percentage of the repair costs out of your pocket while the insurer covers the remaining amount. It is fixed and cannot be altered.

On the other hand, voluntary excess can be adjusted when purchasing your bike insurance. Opting for a higher voluntary excess can help reduce your insurance premium. However, remember that a higher excess means paying more out of pocket if your bike sustains damage.

Final Words

Henceforth, several factors influence the cost of bike insurance in India. Understanding these factors will help you make informed choices when purchasing or renewing insurance policies. You can effectively manage and reduce your bike insurance premiums by selecting appropriate coverage, maintaining a clean riding history, and leveraging discounts such as NCB.