Bike Insurance Premium Calculator

How about getting competitive quotes for your bike insurance from top insurers in a jiffy? Sounds convenient, right? Here in, comes the role of a bike insurance premium calculator! Comparing bike insurance policies becomes much easier with an online premium calculator. Let’s now put light on the online insurance calculator and how it is used to ascertain the bike insurance premium amount.

What Is a Bike Insurance Premium Calculator?

A bike insurance calculator is an online tool that helps you calculate your bike insurance premium. With this dynamic tool, you can compare the quotes of different insurance companies and select the one which is fully suited to you and your bike.

Using a calculator is very simple, all you need to do is fill in your details, select the factors which affect the premium for your bike insurance policy and click compare. You will thus get an approximate idea of what will be the amount of premium you need to pay for the insurance policy.

Benefits of using Bike Insurance Premium Calculator

Here is a list of benefits of using a bike insurance premium calculator:

  • Using a calculator is groundwork which accelerates the buying process.
  • You don’t settle for anything unprofitable since you compare deals from different insurers.
  • You get an idea about the factors that affect your premium. You can, thus, try to reduce it.
  • You are not influenced by any agents. You make an informed decision, depending on your needs.

What Are the Components Of a Bike Insurance Premium?

Your bike insurance premium is made up of  the following 8 components:

  1. Third-party Cover
  2. Own-damage Cover
  3. Insured Declared Value (IDV)
  4. Personal Accident Cover for Owner-driver
  5. Discounts
  6. No Claim Bonus
  7. Deductibles
  8. Add-on Covers

Third-Party Cover

Following are the features of a third-party bike insurance component:

  • This covers you for any loss or damage caused to another person, vehicle or property by your bike during an accident.
  • It is mandatory for every bike rider to have such a cover in India.
  • The third-party premium rates depend on the engine capacity of your bike.
  • These rates are fixed and revised periodically by the IRDAI.

Own-Damage Cover

Following are the features of an own-damage cover:

  • This covers you for any kind of loss or damage to your bike due to accidents, fire, theft, natural calamities, etc. It also includes bodily injuries.
  • Although such a cover is beneficial, it is not mandatory in India.
  • The premium rate of the own-damage cover is calculated as a percentage of the Insured Declared Value (IDV) of your bike. This is the market value of your bike.
  • These rates are calculated by your insurance company.

Insured Declared Value

Insured Declared Value(IDV) is the maximum amount that you can claim in the case of any loss or damage. Thus, it is the current market value of your two-wheeler. Over a period of time, the value of your bike depreciates and thus, the IDV reduces too. The higher the Insured Declared Value, the higher the premium of your bike insurance and vice versa. However, it is better to get IDV which is near the cost of the market value of your bike.

Personal Accident Cover for Owner-driver

A personal accident cover for owner-driver provides a lot of financial benefits to the driver of an insured bike, in case of accidents. Following are the benefits:

  • Daily Hospitalization Cash Benefits: If the owner-driver of the insured bike is injured due to an accident he will be paid with hospitalization cash.
  • Compensation for Disability: In case of partial or total disability of the owner-driver, he/she will be given a compensation.
  • Accidental Death Benefit: Compensation for the family of owner-driver of an insured bike in case of death due to a bike accident.

Discounts

  • Having features like anti-theft devices installed can get you premium discounts of up to 2.5 percent, as this decreases the risk posed to the insured property.
  • You may also get a discount for being a member of the Automobile association of India.

The above possibility depends from one insurer to another.

No Claim Bonus (NCB)

  • Your claim history also affects your premium amount.
  • If you do not make any claims in a year, you get a discount on the own-damage premium, at the time of renewal. This discount is known as a No Claim Bonus. On renewal, it can get you a discount of up to 50% on the premium amount for five consecutive claim-free years. However, if you make even a single claim in one policy period, your accumulated NCB comes down to zero.
  • The following table will give you a better understanding of the No Claim Bonus:
No. Of YearsDiscount
One claim-free year

20%

Two consecutive claim-free years

25%

Three consecutive claim-free years

35%

Four consecutive claim-free years

45%

Five consecutive claim-free years

50%

Deductibles

  • Committing to pay voluntary deductibles reduces your premium.
  • This is the portion of the bill you pay from your own pocket at the time of making claims. A certain amount is also charged as compulsory deductible at the time of claims.

Add-on Covers

  • Add-ons provide more value as compared to a standard bike insurance policy. For extra add-on covers, you have to pay more premium.
  • Zero-depreciation is a common add-on, which compensates you for the entire claim regardless of the depreciation of your bike.
  • Other add-ons include return to invoice, consumable expenses cover etc.

How To Use a Bike Insurance Calculator?

  • Most of the insurance companies have an insurance calculator on their website.
  • You can go to these websites and click on their insurance premium calculator button.
  • It then asks you for your personal, vehicle, policy and contact details such as:
    • The date of registration of your vehicle
    • The city of registration
    • The name of your bike manufacturer
    • The model and class of the bike
    • Fuel type of the bike
    • The type and the period of your policy
    • Details about the extra coverage that you need
    • Your name, mobile number, and email id.
  • Fill in these details correctly, agree to their terms, and then click on the ‘Calculate’ button to get your two-wheeler insurance premium quote.

So, please ensure that you make a proper use of the bike insurance premium calculator the next time you want to buy or renew your bike insurance online. It will help you to compare the quotes of different insurance companies before making the final decision that best suits your needs.

Tips to Reduce Bike Insurance Premium

Here are some important tips to reduce the cost of your bike insurance policy/premium:

  1. No Claim Bonus (NCB)
  2. Timely renewals.
  3. Make Smart Claims
  4. Add-ons
  5. Anti-Theft Devices
  6. Modifications
  7. Other Factors

Let us understand the above pointers in detail:

  1. No Claim Bonus (NCB): The sure shot way of reducing your bike insurance premium is by earning the NCB for your bike.
  2. Timely renewals: Avoid policy lapse by renewing your bike insurance policy on time. This will help in availing the no claim bonus.
  3. Make Smart Claims: File a claim against your bike insurance policy only when you cannot personally afford to pay for the cost of damages. Making small claims will reset your NCB cycle.
  4. Add-ons: Select only those add-ons which you absolutely need.
  5. Anti-Theft Devices: Installing security devices, like an Anti-theft device, will earn you a discounted premium.
  6. Modifications: Any kind expensive modification will increase the cost of your bike insurance policy, as getting these parts insured would be a good idea. If your priority is to reduce the amount of premium, then avoid these modifications.
  7. Other Factors: Providing accurate information like: geographical location, age, profession or marital status, will result in better pricing for the policy you purchase.
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