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. In order to calculate your premium, you must first understand what constitutes your premium.

What Are The Components Of A Bike Insurance Premium?

Your bike insurance premium is made up of 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. Service tax

Out of these, your premium primarily comprises of the first two.

Third-Party CoverOwn-Damage Cover
- 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.
- 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.

What Determines The Two-Wheeler Insurance Premium?

The cost of the bike insurance is never fixed. It depends on the following factors:

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.

Type of coverage

  • The wider the coverage, the higher would be the premium.
  • Opting for only a third-party bike insurance costs you less as the coverage is low.
  • Buying a third-party policy may be cheaper than purchasing a comprehensive bike insurance, but it doesn’t cover your own bike’s damages.

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.

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.

Security features

  • 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. This 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 Years Discount
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%

Let us now put light on the online insurance calculator and how it is used to ascertain the bike insurance premium amount.

Bike Insurance Premium Calculator

What is it?Why should you use it?
- 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.
- This groundwork accelerates the buying process.
- You don’t settle for anything unprofitable since you compare deals.
- 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.

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.

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