You must have wondered some or the other time that why different bikes of the same make have a difference in insurance premiums. Well, to break your myth, its not just the model, there are several other different factors which affect the price of premium of your insurance policy.

How does your bike affect the insurance that you pay?

Let us talk about all the points which affect your insurance policy’s cost.

1. Engine Capacity

Just like the bike with a higher cubic capacity (cc) costs more; the cost of insurance of the bike also goes with the cc of the bike. Cubic capacity is also considered as the base to identify the actual of the bike. Hence, the bigger the engine your bike will have, the higher the insurance premium you will have to pay.

2. Modification

Any kind of customisation or accessories to the bike adds value to your vehicle. And you would certainly want to insure all your accessories as well to avoid any kind of financial loss in the event of theft or crash. However, adding extra modifications in the insurance escalates the cost of premium accordingly.

3. Value

The brand and functionality of your two-wheeler play a major role in deciding the value of your vehicle. Normally, the cost of insuring a two-wheeler hover around 2 to 3 percent of the real value of your vehicle. However, over the years, normal vehicles lose their value however, high-end models gain vintage value. For instance, the value of a 10 year Bajaj Pulsar would decrease but the value of 20 years-old Ducati will increase as it becomes more aspirational for bike enthusiasts and becomes a collectible.

4. Anti-Theft Device

The majority of insurance companies offer a discount to vehicle owners who have installed an anti-theft device on their vehicles. This is given as a reward for ensuring added security for the vehicle to reduce the risk of theft.

5. Add-ons

Add-ons like roadside assistance, accidental insurance and return to invoice bought along with comprehensive insurance policy can increase the premium significantly. Take only those add-ons which you think would actually benefit you.

6. No-Claim Bonus (NCB)

If you have not taken any claim in the past during policy, then you are eligible for no claim bonus. You are eligible to get a no-claim bonus of 20 percent for the first renewal of the policy and afterward, it would increase by 5 percent every year. However, there is a capping of 50 percent discount on NCB.

7. Membership

Riders who are the members of the Automobile Association of India are eligible for the discount. Other accredited automobile associations such as AAIE (Automobile Association of Upper India), and AASI (Automobile Association of Southern India) can also avail discounts on their premiums. However, the discount is only 5 percent of the OD premium or not more than 200 INR.