Bike Insurance Premium- Things To Keep In Mind

Owning a bike is one of the coolest things one could possibly imagine – zooming down the roads as the tires skid on the road. Protection against theft or cases of accidents are the main factors that make it necessary to purchase insurance. In case things go south, financial support can help the customer recover from the loss. There are a few things that should be kept in mind about the bike insurance one purchases, and we're here to discuss those!

• Type of insurance: There are two major choices that a customer can choose from – third-party liability or comprehensive insurance policy. Third-party insurances are cheaper as compared to comprehensive policies since they do not cover theft or own damage. But it is better to think about the long term when purchasing an insurance plan.
• Depreciation: After years of usage, the value of the bike starts to decrease. Higher the depreciation, lower the premium amount for the customer.
• IDV: IDV calculates the present market value of the two-wheeler. The companies do allow the customers to choose the IDV within a certain range for the vehicle. The higher the IDV, the higher is the premium amount – it depends on one's situation and preference.

• No Claim Bonus: No-claim bonus is one of the easiest ways to get a discount on the overall premium amount. This is done to encourage safe driving among owners.
• Accessories: There are several accessories that one gets when purchasing a bike. Several insurers allow the owner to insure those accessories.
• Add-ons: There are several add-ons that can be purchased by the owner as a way to enhance the protection that the insurance policy offers. That includes – nil depreciation cover, EMI protection cover, daily allowances, helmet covers, etc. These cost extra to the owner, so one should be very careful; purchase the ones that would be useful!
• Deductibles: Deductibles are meant to ensure that the owner doesn't make repeated and frivolous claims. This could mean that the owner would have to pay from their own pocket instead of getting help from the insurer. For owners who do not make such claims, a voluntary deductible is provided as a means of getting a discount on the premium amount.
• Location: This might not be an obvious guess, but, location influences the premium amount. There are some areas that might have higher theft or accident rates. In those areas, the insurer might claim higher premium amounts from the owners as compared to other areas.
• Mode of purchase: In recent years, more and more people have shifted towards purchasing insurance online. The benefits include – better choices, comparison of one policy with the other, better discount offers, elimination of the middlemen, and better add-on benefits.

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