We often tend to believe that an affordable product would mean that we need to compromise on the features somehow. However, this does not hold in terms of 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.
policy’s cost, hence the need to select the correct IDV…
is mandatory under The Motor Vehicles Act, 1988.
There are two types of bike insurance policies – Third-party Liability policy and Comprehensive policy. A comprehensive policy offers more coverage as compared to the former type. Thus, 3rd party bike insurance price is lesser than that of a comprehensive policy. Also, it is advised to buy a comprehensive bike insurance policy as it covers the insured bike.
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 which affect bike insurance premium:
- 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 as compared to the one for Honda Activa.
- The manufacturing date of the bike: The manufacturing date plays an important role while calculating the premium amount. This holds because depreciation of the bike is also taken into consideration while determining bike insurance.
- Insured Declared Value (IDV): IDV is an amount 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.
Simple yet smart moves while buying or renewing your bike insurance policy will lead to a good amount of discount. To sum it up – choose adequate coverage and pay an affordable amount for buying bike insurance.