Variables that Can Impact the Motorcycle Insurance Premium

There are many factors which determine the premium of a motorcycle insurance policy. Some of these factors are age of the bike, brand and model of the bike, power of the bike, where the bike is going to be used, how old the applicant is, etc. Let us take a detailed look at some of these variables that influence the premium that you will be required to shell out on your bike insurance policy. Premium on bike insurance renewal will be lower than if you are buying a new bike.

  1. The first factor which is taken into consideration while assessing the premium of you bike is the year in which it was manufactured. This is important because as the bike grows older, its depreciation increases and the insurance provider is going to charge a premium on the current market value of the bike.
  2. The next most important factor which is taken into account while fixing the premium of your bike by the insurance provider is the brand and model of the motorcycle. It you are buying an entry level bike, its cost is going to be less and thus you will have to pay less premium, but if you are buying a high-end sports bike which is very costly, obviously it increases the risk factor and will therefore attract a higher premium.
  3. Likewise, if you buy a bike which is less powerful, say with a engine capacity of 100cc, your premium will be less, while if the engine capacity of the bike you are purchasing is, say, 350cc, it will pose a greater risk both to you and the insurance company, and hence the premium that you will be asked to shell out is going to be much higher.
  4. The insured declared value (IDV) of your bike has a direct bearing on the premium you will be required to pay for your bike insurance. IDV based on age is the market value of the bike which is calculated by subtracting the depreciation from the invoice value of the bike. This IDV based on age goes on decreasing year after year, thus attracting progressively lesser premium.
  5. There are many accessories that you can fit on your bike to reduce the risk of theft and also to minimize the damage caused to you and your bike in an accident. The more safety features that you fix in your bike the less your insurance premium is likely to be, for the simple reason that they reduce risk.
  6. Another very important aspect that has a direct and substantial bearing on your bike insurance premium is the no-claim bonus that you are entitled to. This comes in very handy at the time of bike insurance renewal. If you have not raised any claim in the previous year, you could be entitled to a no-claims bonus that could be as high as 50 percent, and it is deducted from the premium you have to pay at the time of you your bike insurance renewal.

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