We often tend to believe that an affordable product would mean that we must compromise on the features. However, this does not hold in buying a bike insurance policy. Just by using the following simple tips, you can buy an insurance policy that will be both affordable and rich in features.
two-wheeler insurance policy’s cost, hence the need to select the correct IDV…#3 Choose Add-ons Wisely
Each Add-on provides extra coverage. However, buying more than necessary will shoot the rate of your two-wheeler insurance policy. Thus, buy only those covers that you require.
#4 Install Anti-theft Devices
Buying insurance implies that your insurer will cover you against monetary losses. Your insurer will appreciate that you have tried to protect your bike against theft. This could lower your premium amount.
#5 Get a Membership in AAI
Becoming a member of the Automobile Association of India provides certain privileges. One of these is a discount on bike insurance premiums.
Third-party bike insurance policy is mandatory under The Motor Vehicles Act 1988.
There are two bike insurance policies – A third-party Liability policy and a Comprehensive policy. A comprehensive approach offers more coverage as compared to the former type. Thus, 3rd party bike insurance is less expensive than a complete approach. Also, buying a full bike insurance policy is advised as it covers the insured bike.
Which Factors Affect Bike Insurance Premium?
Various factors can affect the premium amount of your bike insurance. Some of these indirectly depend on your driving habits. Here are some key factors that affect bike insurance premiums:
- Make and Model of the Bike: Your bike insurance policy will be priced depending on the bike you want to insure. Here, the price of the bike matters. An insurance policy for a Ducati will be more expensive than the one for Honda Activa.
- The manufacturing date of the bike: The manufacturing date plays an important role in calculating the premium amount. This holds because the cycle’s depreciation is also considered while determining bike insurance.
- Insured Declared Value (IDV): IDV is approximately equal to the bike’s current market value. IDV makes the basis of the calculation for deducing the premium amount.
- No Claim Bonus (NCB): As a reward for not raising any claims against your bike insurance policy, you will be given a discount each time you renew the policy. NCB comes into effect from the first renewal of a bike insurance policy.
While buying or renewing your bike insurance policy, simple yet smart moves will lead to a good discount. To summarize, choose adequate coverage and pay an affordable amount for bike insurance.
