Last Updated on July 29, 2019 by Gopal Gidwani
When you purchase a two-wheeler, you shell out all your hard earned money in order to fulfill your lifelong dream. After the big purchase, it is your responsibility to move ahead with the process of insurance. Before covering your two-wheeler with an insurance policy, understanding the technicalities of cost structure is a necessity. Therefore, take a look at the various factors that impact the pricing of the two-wheeler insurance policy.
What are the factors that influence the two-wheeler insurance pricing?
a) Natural damage
A two-wheeler vehicle should be covered against all the natural calamities like cyclones, earthquakes, floods, and so forth.
b) Man-made damage
A two-wheeler vehicle should be covered against all the man-made occurrences like theft, war, and terrorism.
c) Risk Coverage
By opting for a two wheeler insurance policy, you avail the benefits of a cover that provides financial support in times of need.
d) Necessity
As stated by the Motor Vehicle Act, 1988, a two-wheeler insurance policy is a compulsion.
What is the premium?
The premium plays an essential role in the working of an insurance policy. However, there are certain factors that determine the rate of premium. Take a look at the factors mentioned below that control the value of premiums.
a) Deductible
The higher the value of deductibles, the lower is the value of the premiums. When you opt for higher deductibles, there is a rise in the replacement cost.
b) Model of the vehicle
The premium is majorly influenced by the model of your two-wheeler. For instance, the insurance premium is higher for a sports bike.
c) Coverage
In order to use your two-wheeler on roads, it is important to at least purchase a third-party insurance cover.
d) NCB
Do not make a claim if there are minor dents or scratches to the vehicle. However, you are liable to receive NCBs free per year if there is no request for claims from your side.
How to reduce the premium?
There are times when the rate of premium is higher. In order to tone down the value of premiums, there are multiple ways of doing so. Go through these few ways mentioned below in order to lower the rate of premiums:
a) Additional covers
You should consider not opting for extra add-ons if you already have a health insurance policy that offers coverage during an accident. Opting out of an additional rider reduces the rate of the premiums.
b) Smaller & modified vehicle
While a smaller vehicle works just fine for your basic travel, non-purchase of a modified vehicle avoids the trouble of burglary or thefts and unwanted expenses.
c) No claims
No request for claims can simply allow a reduction in the costs. For instance, if you haven’t made a claim so far, then you are eligible to receive the benefits of NCB.
Now that you know the cost structure of a two-wheeler insurance policy, invest in the plan today. Another way to ensure the availability of cheaper policies is by investing in two-wheeler insurance online. When you do so, you can also take help of two wheeler insurance premium calculator to make comparisons of different policies online.