What Questions Do Two-Wheeler Insurance Companies Ask and Why?

Buying bike insurance online is very convenient. While buying any product online, e-commerce websites do not question the purpose of buying a product but, insurance companies do. While buying bike insurance, insurance companies ask a set of questions. Read further to understand what these questions are and the purpose behind asking them:

Who Owns the Bike?

The first and foremost question any insurance company would ask an individual is for details about the bike owner/policyholder. This is the first step that will help understand the risk and liability involved for the insurance company. They then create a user profile and suggest suitable bike insurance policies. For instance, a person with less driving experience will be offered tailored coverage that will provide maximum insurance coverage and an experienced driver will be offered a basic cover since he is a low-risk customer

What Are the Details of the Bike?

Insurance companies require details of the bike to understand the type of premium to charge the policyholder. Certain factors will help determine the premium rate, for example:

Manufacturing Year of the Bike – This will help determine the age of the bike, which is important in calculating the premium

Manufacturer of the Bike – This will help understand the brand and value of the vehicle. Brands like Harley Davidson and BMW will attract higher premiums compared to other regular vehicles

Model of the Bike – The model of the bike helps calculate the cubic capacity (CC) of the bike. This is essential to determine the premium price. If a bike has a low CC, one will have to pay a nominal premium whereas, if one has a bike with a high CC, they will have to pay a high premium price

Modifications Done to the Bike – One must inform the insurer about modifications done to the bike. While modifications done to improve the speed will attract high premiums, modifications done for safety or disabled individuals can attract discounts on premium rates

What Is the Desired IDV?

Policyholders will be asked to choose an Insured Declared Value amount when a policy is bought. This is the amount one will get in case of total damage to the vehicle or theft. It is important to choose the right IDV since a low IDV can result in getting a very low claim amount. Selecting a very high IDV can result in having to pay a high premium price

What Is the Primary Use of the Bike?

There are two purposes for a vehicle – personal and commercial. Insurance companies have different terms and conditions for different purposes of the bike. For instance, if one expresses their will to use the bike for commercial use, they will be given a limit of the weight of goods the rider can carry

Where Do You Live?

The cost of bike insurance is never standard in all Indian states. The place where the policyholder resides can tell a lot about the risk factors involved. For example, bike insurance will cost higher for those living in cities or hilly areas when compared to those living in small districts and towns since the risk is higher

What Coverage Do You Require?

While it is the insurer’s responsibility to educate the policyholder about all policies and coverage options, the policyholder must take the final call. One must choose the policy and coverage wisely for the best protection of their two-wheeler