Bikes or motorcycles are no more a two-wheeler aimed at commuting the rider over long or short distances. The new era bikes are full of technical and safety features making the ride more comfortable, safer and sportier. The features once available in cars and now available in bikes. You get central locking, anti-theft alarms, anti-lock braking system, Bluetooth audio control, and many other features. This adds to the cost and the complexity of the bike making it much expensive to be owned and to be repaired. If the vehicle is insured against certain damage risks the owner will get the damage benefit. You need to pay a premium against the policy bought and its amount depends upon certain variables.
Variables Influencing Insurance Policy
Make and Model
The first factor that influences the insurance policy and decides the premium to be paid in order to avail various benefits in case of damage to the vehicle due to an accident or theft so that the damage control can be made is the make and model of the vehicle. Different premium is to be paid for bikes of different price, colors, and features. High-tech bikes are usually made up of more expensive and rare spare parts and are difficult and costly to be repaired. Imported bikes also pose the difficulty in spare and service, therefore the make and model is considered while framing carious terms for the motorcycle insurance policy.
Capacity of Engine
Most of the motor vehicle manufacturing companies report that a major portion of their profit is not the difference in manufacturing and selling price but the after sale spare and service of the vehicle. The capacity of the engine is a deciding factor in the cost of spare and service, an engine with higher capacity is usually more expensive to be serviced. Therefore the insurance companies consider the size of the engine as equally important for the insurance premium and include benefits against damage protection depending on the engine size only.
Another factor that decides the policy benefits and the insurance premium is the geographical location of the place where the vehicle is to be used. Within a country, the insurance policy price varies with the change in terrain from one state to another. The urban areas are highly populated and a lot of traffic jam is generally encountered while on road, therefore, the risk of damage is also high and the insurance benefits are usually strict and the policy premium is also high. Whereas in rural areas the traffic density is scarce and the premium for the insurance is kept low as less risk of damage due to accidents is there.
Vehicle Safety Features
A safer vehicle is less prone to accidents and damage due to them. Bike manufacturing companies install a lot of safety feature on the vehicle in order to increase the safety of the vehicle on road and ensure that the rider is least harmed by the accidents or poor road condition. The anti-lock braking system, Anti-theft alarm, safety kill switches and much more safety features present on the vehicle influence the policy premium quoted by the insurance company and special discounts are offered to the customers having these safety features on their vehicle.
The damage caused to the bike and the risk of the accident on the road is highly influenced by the age of the rider. People of different age group handle the vehicle differently and this difference in handling affects the bike engine in different ways. The insurance companies consider this fact while deciding the benefits to be offered by the company and the premium to be paid by the customer. The young riders and more enthusiastic and handle the vehicle with less care. Moreover, the reflexes of young people are not ready to deal with adverse conditions. Therefore the companies charge a higher cost if the bike owner is young in order to formulate justified policy terms.
No Claim Bonus
The claims made by the insurance policyholders in the past decade the cost of the premium to be paid by the customer in order formulate an insurance policy with justified terms for both the customer and the service provider. If no claims have been made by the owner in the past year the insurance company will benefit the customer with discounts up to 50 percent on the premium to be paid for the next annum. If you are buying a new bike than the no claim bonus retention certificate obtained by you from the insurance company against the no claims made by him in the past. This will help you to avail a discount on a premium of new bike’s insurance.
Year of Manufacture
It is another factor that influences the policy premium as well as various other terms of the policy. With the growing age of the vehicle, an increase in the deductions on the claim is made. Both the age and the deductions are directly proportional to each other. For a vehicle with an age less than 6 months, 95 percent of the ex-showroom price can be claimed in case damage or theft. After a year the claim becomes 85 percent and after that, a 5 percent increase is made in the decrement and following that regular 10 percent increase in the deductions each year.
Motor insurance policies are drafted considering a large number of factors. The more benefits you want to avail you need to pay more price. Apart from this, there are other factors that make the insurance premium more expensive or cheaper. These include factors like rider age, geographical location, year of manufacturing, past record of the customer, make and model of the vehicle and other specifications of the vehicle. You can modify the terms of the policy by making these factors turn into your favor by ensuring the care of the vehicle.