Does your city of residence affect your bike insurance premium?

With most major Indian cities experiencing severe congestion during traffic peak hours, bikes and other two wheelers have emerged more as a necessity than any other mode of transport. However, purchasing and riding a bike comes with several rules of its own. For instance, it is mandatory to have bike insurance when you ride on Indian roads. While this rule only applies to having third party insurance, there are other kinds of coverage available which are usually included within comprehensive bike insurance policies. Third party insurance refers to the coverage available to third parties if your bike causes injury to them or damage to their property or vehicles. Comprehensive bike insurance provides coverage for a host of other situations, including damage to the vehicle or the rider. 

If you purchase the Bajaj Allianz Bike Insurance, you can buy a comprehensive cover that includes coverage against natural calamities, theft, loss or damage to the insured vehicle. The policy also includes a personal accident cover for the rider of the bike. Additionally, you can apply and pay bike insurance online, and even renew your policy online in a hassle-free manner. Use the bike insurance calculator on the portal to find out how much your bike insurance premiums would cost.

Bike insurance premiums differ from vehicle to vehicle, even if they are the same make and model. The cost of the premium differs for a variety of reasons, including condition of the vehicle, skills of the rider, insurance claims made by the rider over previous years, modifications made to the bike, and others. The city of residence is a huge factor that affects the premiums paid by the bike owner as well as the insured declared value (IDV). IDV refers to the maximum sum assured that would be payable by the insurer in case of theft or damage to the bike. The value is equivalent to the bike’s current market value, after deducting the value of depreciation of the bike. IDV determines the value of compensation that will be offered to you, when you raise claims with your insurer. 

In case you live in an urban area, where the number of vehicles are high, the chances of accidents also increase significantly. To deal with this, the cost of insurance premiums are higher in such areas. Alternatively, if you live in an area which is less populated and thus has a lesser number of vehicles, your chances of meeting with an accident are also lower. Thus, the cost of your insurance premiums would also be lower. 

Depreciation of the vehicle is also higher when it is being ridden in cities with huge population and vehicle density. To ensure that your IDV does not take into account the cost of depreciation, though, you can opt for a zero depreciation cover with the Bajaj Allianz Bike Insurance, available on Finserv MARKETSW. Though your premium cost would increase, it would still help you get a higher IDV if you do need to raise a claim with the insurer. A zero depreciation bike insurance cover ensures that you receive the full market value of the bike, without having to account for its depreciation over the years. Use the bike insurance calculator on the portal now to calculate how much you’d have to pay as premium on your bike insurance. The policy can be purchased online, you can pay bike insurance online and you can also renew the policy online with minimal hassle.

Several other factors also affect the cost of your bike insurance premium. Read on to learn more about them.

  1. Capacity of Engine:
    Cubic capacity of the bike’s engine also determines the amount you are required to pay as bike insurance premium. If the capacity of the engine is high, your premiums will be higher.

  2. Bike Make & Model:
    The make and model of the bike is a major determinant of the premium cost you will have to bear for your bike insurance policy. If your bike has more advanced features, the premiums will cost more. On the other hand, if your bike is a low-cost model, your bike insurance premiums will cost lesser too.

  3. Year of Manufacture:
    The older the bike, the lower is the premium cost. The newer the bike is that you wish to insure, the higher is your bike insurance premium cost.

While third party insurance is a mandatory requirement for riding on Indian roads, it is advisable to purchase a comprehensive policy that offers coverage to the bike and rider. Buy Bajaj Allianz Bike Insurance, available on Finserv MARKETS, and gain coverage from a host of situations, including natural and man-made disasters. The insurance policy also covers personal accident cover for the rider, and provides access to bike roadside assistance as well as cash-free servicing at more than 4,000 garages across the country. Head over to the portal and calculate your premium costs using the bike insurance calculator. This policy can be purchased online, and you can also pay bike insurance online and also renew it online.


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