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Bike insurance renewal premium is determined by various factors. When you buy a new bike you get a prepaid insurance as the moment your bike is on the road, it is essential to have third-party insurance. However, when the renewal time comes then you need to pay heed to the certain facts. Paying attention to these facts will help you pick the best insurance that will ensure you meet your obligations at a pocket-friendly renewal premium.
The premium has two components; fixed and variable. The fixed factors that affect two-wheeler insurance premium are:
Insured Declared Value: IDV is the coverage amount provided by the insurance company. IDV is basically the market value of your bike at the time of availing insurance. With time the bike undergoes wear and tear and the market price becomes less than the purchase price. The insurer determines the IDV of your bike and offers maximum coverage as per it.
Cubic Capacity (CC): Cubic capacity is the capacity of your car engine. The more the cubic capacity, the more is the premium.
The fixed elements are static but the following variable elements help you to reduce bike insurance renewal premium.
Coverage type
The third-party or liability insurance is required and is also mandatory to take of care of the legal liability as well sudden expense that may arise due to your involvement in an accident. However, this would not come to your rescue if you need to get your bike fixed.
Hence, if at a time of purchase you only had third-party insurance do consider buying a comprehensive insurance that would take care of loss occurred to your vehicle also. It would definitely be costlier than third-party cover, but if the loss occurs then this insurance would reduce your financial liability.
Frequency of premium payment
If you pay your bike insurance renewal premium on quarterly or bi-annually basis than on annual basis it would cost you more. The more the frequency, the expensive the premium.
Drive safe to claim NCB
If you drive safe and do not claim from insurance company in one policy year then you receive No Claim Bonus discount on your next renewal premium. If you do not claim consecutively for 5 years, you can receive upto 50% discount on your renewal premiums. This is applicable for own damage part only. Hence, drive safe and reward yourself.
Voluntary Excess
Voluntary excess is a certain percentage of loss that you agree to pay if actual loss occurs. This would reduce your annual premium.
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