5 variables that contribute to our two-wheeler insurance premium

Brand Feature Published: January 27, 2020, 03:18 PM IST

The Indian two-wheeler industry is the world's largest. It overtook China to the top spot in 2016 and the numbers involved are impressive. In FY17-18, 81 million two-wheelers were sold in India. This is 81 per cent of all vehicles sold in the country. To give an idea of how large this industry is, only three million cars were sold in the same period. And the growth numbers are even more splendid. Between 2012 and 2018, eight million new people have become two-wheeler owners.

With so many new vehicles and riders on the road, it also becomes important that can use their vehicles optimally and responsibly. This is where two-wheeler insurance starts to come into the picture. It's a very important aspect of two-wheeler ownership. So important in fact, that it is a mandatory requirement for all two-wheeler owners in India. The reasons behind this are easy to understand. Two-Wheeler insurance offers you protection against damage that occurs to your vehicle in case of a mishap. Any cost of damages incurred while riding can be claimed through insurance. An insurance policy also helps you with third party cover. This means that the insurance firm will also take care of the damages incurred by a third party involved in a mishap with you, so you don't need to pay for the damages caused to them. Insurance firms also protect two-wheeler owners from incidents beyond their control like floods, fire, riots and so on.

Image source: Bajaj Allianz

This is where a reputed brand like Bajaj Allianz General Insurance Company fits into the picture. Choosing a highly regarded name such as this means you get a lot of benefits that make choosing the best insurance policy for you a whole lot easier. Bajaj Allianz Two Wheeler Insurance allows you to buy your policy very easily online. Just a few clicks and you can have your policy ready. There is also round the clock claim assistance and update you on the status of your claims through SMS. Their hassle-free renewal process ensures your bike never remains uninsured. There's no inspection needed, no questions asked. Finally, claims are also settled very quickly through a hassle-free, cashless claim settlement process that ensures you get the defined benefits of your insurance at the earliest.

But how do you get an insurance policy that gives you all these benefits? You pay a yearly premium as a fee to get this protection. The amount you pay as this premium can vary from person-to-person. Two Wheeler Insurance premium calculator from Bajaj Allianz will also help in this regard and this premium is largely decided by the following five main factors.

Type of Two-Wheeler

Every aspect of your two-wheeler has a say in how much premium you pay. Factors at play here are the make and model of the vehicle, how large the engine is, any accessories fitted to it, where it is registered, and even the mileage. Bajaj Allianz's transparent process mean that there are no surprises in store when you pay your premium. You are aware of how much you are paying and why.

Value of the Vehicle

The make and model of the vehicle plays a deeper role here. Bikes from brands which make a certain kind of motorcycles may demand a higher premium than those from another brand that makes say scooters. Here, Bajaj Allianz will again show you how much your brand of motorcycle will cost you before you pay.

Gap in Renewal

If you fail to renew your insurance policy before its expiry, you may need to buy a fresh policy with different terms. This is likely to cost owners more than a renewal to owners given the regular wear and tear that the bike goes through. Bajaj Allianz is again a good fit to overcome this problem. The renewals can be done hassle-free online, with the policy owner getting regular updates so that you don't miss your renewal date.

Age of Vehicle

The age of the vehicle plays a big role in how much premium you pay for your two-wheeler. The older your scooter or motorcycle gets the more likely it is to be unreliable and more likely to fail. This will increase the premium as the risk to the insurance company is more. But Bajaj Allianz has a fair evaluation process and a three-year long term coverage policy that locks in rates for a longer time.

Value Reductions

The year 2019 has seen some slowdown in the two-wheeler market. This and the switch to BSVI means that some good offers might be coming your way. This lowered cost of purchase will affect your premium as the insurance premium is also valued as a percentage of your two-wheelers total value. Bajaj Allianz has competitive market rates so you can expect a good deal coming your way.

All of these show that choosing your insurance service provider carefully will play a big role in how much premium you eventually pay. A trusted brand like Bajaj Allianz will guide to through this process in the best way possible and provide you with the best possible rates. To buy Bajaj Allianz Two-Wheeler Insurance visit the website www.bajajallianz.com or call toll free on 1800-209-0144/1800-209-5858. You can also connect on social media or through their 'Caringly Yours' mobile app.