Why is Bike Insurance More Expensive than Car Insurance?

Posted on: Apr 4, 2022 | | Written by:

Why is Bike Insurance More Expensive than Car Insurance?

Why is Bike Insurance costly than Car Insurance

Car and bike insurance are both compulsory in India. However, the costs of both these covers differ and there are some very valid reasons why. While a car is a bigger and more costly vehicle, the risk of riding a motorcycle is higher. This is why the premium of each type of motor insurance is selected after careful consideration. What are these risks and which type of vehicle insurance is more expensive? Let’s find out.

How is a bike insurance premium fixed?

Like all other forms of insurance, a bike insurance plan is also issued to cover the risks associated with riding a bike. The following factors are considered:

1. Make and model of the vehicle:

The vehicle’s make and model play a deciding role here. You need to get a more expensive insurance plan if you have a high-end racing bike, as compared to a smaller, gearless scooter. Hence, the value of the two-wheeler is directly proportional to the cost of its insurance cover.

2. Age of the vehicle:

The next point to be considered is the age of the scooter or the bike. An older two-wheeler has a lower risk of theft and its value is lower too, as compared to a brand-new vehicle. This is why it has a lower insurance premium. The age of the vehicle, therefore, plays a deciding role.

3. Third-party cover:

Every bike insurance plan has a compulsory third-party cover. This is another overhead that gets added to the premium of the policy.

4. Passenger cover:

You get coverage against bodily damages to the people travelling on the bike if an accident occurs. This includes the rider and the pillion.

5. Add-on covers:

And last but not the least, your insurance premium will be more if you add some riders to the basic bike insurance plan, as riders are add-on covers that are available at an added cost.

Since different bikes and scooters have different features, the bike insurance premium also differs from vehicle to vehicle.

Which one is more expensive - bike or car?

When you consider the cost of the insurance cover concerning the cost of the vehicle and compare the same to a four-wheeler, you will notice that a bike insurance premium is higher. This is simply because the chance of an accident and the subsequent losses are much higher in a bike as compared to a car, which is safer to travel in. However, there are some ways in which you can reduce the bike insurance premium and make it more affordable for yourself.

Ways in which you can reduce bike insurance premiums:

As mentioned above, there are some definite ways in which you can lower the bike insurance premium. They are:

1. Choose the right cover:

If you have an old bike that you plan to replace this year, do not invest in an elaborate bike insurance plan. Getting a basic third party may be enough. So, choose the right type of cover and save money if you can.

2. Opt for long term insurance:

Bike insurance policies are available for periods of two and three years. The long-term plans prove to be very beneficial and also economical in the long run.

3. Adjust the riders:

When you renew your bike insurance plan, ensure you re-evaluate all your riders to see whether or not you need them all. If you feel any particular rider has become redundant, drop it and you will notice a reduction in the premium rate.

4. Adjust the deductible:

When you buy two-wheeler insurance, there is an element called the deductible. This is the amount you pay out of your pocket at the time of a claim. If the deductible is high, the premium is low and vice-versa. Smartly adjust your deductible and get your premium reduced.

5. Look for discounts:

The bike insurance providers offer various discounts. These include the no claim bonus, discounts for riding automobile associations, etc. Check to see if you are eligible for any discount. If yes, then ensure you get the discount as that will help reduce your bike insurance premium.

6. Install anti-theft devices:

An anti-theft gadget makes your bike safer and less risky to insure. This is why motor insurance companies lower the premium when you install certain anti-theft safety gadgets on your bike. Get these gadgets to keep your bike and your money safe!

These are some simple ways in which you can get a reduction in the overall bike insurance premium.

Conclusion

The bike insurance premium costs more than a car insurance premium and this is because the risk is higher in a bike. Keep all the points mentioned above in mind and get a good two-wheeler insurance policy. Apply the aforementioned tips and try to reduce your premium amount as much as possible.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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