Buying two wheeler insurance, besides being required by law, has a whole host of benefits. The biggest of these is providing cover in the event of an accident or untoward incident involving your precious two wheeler. Other advantages would depend on the type of cover you choose and range from providing protection from natural calamities to incidents like vandalism and theft.
When buying two wheeler insurance, most of us keep one eye on the premium amount when comparing policies. Seeing that figure jump with each passing renewal is enough to cause heartburn to even the most hardened budgeter. So what drives this increase and what complicated computations are behind that figure that provides protection to you and your bike/scooter? We’ve broken down the what’s and how’s that go into the calculation of a two wheeler insurance premium, making it a little easier for you to choose the policy that suits your requirements the best.
Type of Insurance Cover:
The type of insurance cover being sought is a major factor that influences the final premium amount. Two wheeler insurance can either be the mandated third party insurance (also known as liability only insurance) or comprehensive two wheeler insurance.
The liability only policy has lower premiums, but is a very bare bones policy, only covering damage to a third party or a third party’s property and does not cover any damage to the policyholder’s vehicle.
A comprehensive two wheeler insurance covers third party liability as well as damage or total loss of the insured vehicle due to man-made and natural calamities, theft and vandalism among others.
Depending on your requirements, either one of the policies can be chosen.
Type of Vehicle:
The type of vehicle you own also goes a long way in determining your premium amount. The make and model of the two wheeler, the place of registration, any accessories and modifications made to the vehicle and the mileage all play a role in determining the premium amount.
The cubic capacity (cc) of the vehicle has a direct influence on the premium amount. The higher the cc, the higher the premium amount payable.
The age, riding experience and gender of the rider also affect the premium amount. Insurers value stability and security, resulting in a male applicant with around 5 years of riding experience getting a lower premium over a male applicant with just a year’s worth of experience.
The number of add-on covers you choose to add to your existing premium will impact the premium you have to pay. While add-on covers protect you from incidents not covered by your regular policy, they come at a cost. Choosing the add-on covers carefully to ensure you only pay for what you need is a good way to lower your premium ceiling.
The above factors go a long way in determining your premium amount. Trimming down on unnecessary add-ons and ensuring you maintain a stable and clean riding record would result in an automatic reduction in the amount you would have to pay towards premium.
Comparing the policies available and reading the fine print for hidden charges are the best ways to ensure you get the best deal and the maximum benefit from your insurance policy without breaking the bank when it comes to premium payments.