Key factors that determine the premium of a Two-wheeler Insurance policy
two-wheeler insurance policy. The age and type of your two-wheeler are significant factors that insurance companies consider while determining the premium. Generally, older vehicles have lower premiums compared to newer ones because of their reduced market value and lower replacement costs.
The type of two-wheeler, such as a scooter, motorcycle or superbike also affects the premium, as the risks associated with each vehicle type can vary. The engine capacity of your two-wheeler is another important factor for calculating the premium. Two-wheelers with higher engine capacities tend to have higher premiums as they are more powerful and have a greater risk of accidental damage.
The higher the engine capacity, the more expensive it is to repair or replace, resulting in increased premium costs. The way you use your two-wheeler and the location where it is used also impact the premium. If you use your two-wheeler for daily commuting, the chances of accidents or damages may be higher, leading to a higher premium.
Similarly, if you reside in an area with a higher rate of accidents or theft, the premium might also increase. Many insurance companies take these factors into account while determining the risk associated with your vehicle. NCB is a reward given by insurance companies to policyholders who do not make any claims during the policy term.
It is a significant factor that affects the premium. The longer the period without claims, the higher the NCB, resulting in a lower premium. No Claim Bonus can lead to substantial savings on your two-wheeler insurance premium amount.
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