When purchasing a two-wheeler, insurance is a crucial factor that you must consider to protect your bike against risks. A key component determining your insurance premium is the bike’s brand and model.
In this informative blog post, we’ll explore how the make and model of a two-wheeler influence insurance costs, along with other significant factors.
What is Two-Wheeler Insurance?
Two-wheeler insurance is a policy that provides financial protection against damages to your bike, third-party liabilities, theft, and personal injuries. In India, having at least third-party insurance is legally mandatory.
However, opting for a comprehensive insurance policy offers broader coverage, including own-damage and third-party liabilities. Because of each type of insurance have its own pros and cons, it get necessary to compare the bike insurance.
What Factors are considered by a Two-Wheeler Insurance Company?
When determining the insurance premium for your bike, the insurer takes several factors into account, including:
Age of the Bike: Newer bikes typically attract higher premiums due to their higher market value.
Engine Capacity (CC): Bikes with higher engine capacities are usually more expensive to insure.
Bike’s Usage: Whether the bike is used for personal or commercial purposes affects the premium.
Location: Bikes registered in urban areas or accident-prone zones often have higher premiums.
Owner’s Driving Record: A history of claims or traffic violations can increase the premium.
Type of Coverage: The scope of the insurance policy (third-party vs. comprehensive) plays a major role in determining the premium.
How Brand and Model of the Bike Impact Bike Insurance Premium
The brand and model of a bike are crucial factors that significantly influence the cost of insurance premiums. Here is how,
Brand Reputation
First and foremost, the reputation of the brand plays a major role. Premium brands such as Harley-Davidson, KTM, and BMW are generally associated with higher insurance premiums due to their high-end nature, expensive spare parts, and higher repair costs.
In contrast, brands like Hero, Honda, or Bajaj, which produce more budget-friendly bikes, often come with lower premiums. The market value of the bike is another decisive factor more expensive bikes carry a higher premium because the cost to repair or replace them in case of an accident or theft is higher.
Engine Capacity
Additionally, the engine capacity of the bike directly impacts the insurance cost. Bikes with larger engines, such as those over 350cc, tend to have higher premiums as they are more powerful and pose a higher risk on the road.
These bikes are typically faster and more prone to accidents, which increases the likelihood of claims. On the other hand, bikes with smaller engines, often used for daily commuting, generally have lower premiums because they are seen as less risky.
Spare Parts Availability
Another factor is the cost and availability of spare parts. For luxury or international brands, the parts may be expensive and harder to find, which results in higher premiums since insurers anticipate greater repair costs. Conversely, bikes with readily available and affordable parts are less costly to insure.
Theft Risk
The risk of theft is also a concern. Certain models, especially sports bikes, are more likely to be stolen due to their high resale value, leading to an increase in insurance premiums. However, bikes with advanced anti-theft features, like immobilizers or GPS trackers, may benefit from lower premiums as these features reduce the risk of theft.
Overall Look
The overall design and intended use of the bike also matter. Sporty or aggressive-looking bikes, often associated with high-speed riding, are seen as riskier and therefore come with higher premiums. Touring or adventure bikes, designed for long-distance travel on tough terrains, may also attract higher premiums due to the increased risk of damage.
Manufacturer Warranty
Finally, if a bike comes with a manufacturer’s extended warranty or service plan, the insurance premium may be slightly lower, as insurers recognize that the bike will be well-maintained, and manufacturing defects will be covered.
Final Thought
Choosing the right two-wheeler insurance goes beyond just selecting a plan it also involves understanding how your bike’s brand and model impact the premium. High-performance, premium, or imported bikes generally come with higher insurance premiums due to their repair costs, theft risk, and expensive spare parts.
It’s important to weigh these factors when buying your bike, as they will influence not only the purchase price but also the long-term insurance costs.
FAQs Bike Insurance Premium
1. Does new bike need insurance in India?
Yes, it is mandatory to have at least third-party insurance for any bike in India, including new ones. Riding without insurance is a punishable offense under the Motor Vehicles Act.
2. Which type of insurance is best for new bikes?
For a new bike, comprehensive insurance is recommended as it covers both third-party liabilities and own-damage. This offers better protection, especially for a newly purchased vehicle.
3. Should we buy long-term bike insurance for a new bike?
Yes, buying long-term bike insurance can be beneficial as it locks in the premium for several years, offering savings and convenience while protecting against potential premium hikes.
