A two-wheeler insurance policy is mandatory under Indian laws. It is necessary if you look at it from the angle of financial protection also. Whichever way you look at it, you need to buy bike insurance. There are different types of two-wheeler insurance products available in the market at different price tags. You may have the same two-wheeler as your friend’s, but the insurance premium you both pay could differ. Therefore, it is important to know how to calculate two-wheeler insurance premium. Once you know the exact amount of premium you need to pay, you can make an informed decision based on your finances and your specific requirements. Moreover, it provides you a general overview of the two-wheeler insurance policies offered by various insurers in the market.
Let us learn here how to calculate motor insurance premium. We will also examine various factors that impact the premium amount.
Factors that affect Two-wheeler Insurance Premium:
Your two-wheeler insurance premium is calculated after taking into account various factors. They include:1. Where you live: Your location plays a vital role when it comes to determining the premium amount. For example, if you live in a metro city, the premium will be much higher than what you would pay if you lived in a rural area. According to insurers, two-wheelers in metro cities are more likely to meet with accidents. Risk of bike theft is also higher. As a result, the coverage is more extensive, and, therefore, the premium is higher. 2. Your age and gender: Statistics show that young men are more likely to meet with a road accident compared to women of the same age group. Therefore, if you are a young male, you may need to pay a higher amount of premium for your two-wheeler insurance. 3. The type of two-wheeler you own: There are different types of two-wheelers. We can see many variations in models and this fact has a direct impact on the insurance premium. If you have a premium bike or an imported bike, be ready to shell out more premium. As a rule of thumb, two-wheelers with higher cubic capacity tend to have higher insurance premium. Similarly, if you have made any modifications to your two-wheeler to improve its performance, your insurance premium will be higher.
Steps To calculate Insurance premium
When you think about how to calculate bike insurance premium, you have an option to either do it manually or use online calculators.
How to calculate motor insurance premium manually: Calculating it manually can be a very cumbersome process. You will need to find out the IDV or Insured Declared Value of your two-wheeler. Then you will need to multiply the premium rate offered by the insurance company, add any additional add-on covers you wish to have, and subtract any discount benefits. Certain online platforms have a tool that can help you determine the IDV of your two-wheeler. As a rule of thumb, the higher the IDV, the higher is your insurance amount.
How to calculate bike insurance online: If you want to avoid the hassle of calculating premium offline, you can always use online insurance premium calculators which give quotes instantly and help you save on time. You can also compare different insurance policies and choose one that is best suited to your needs. Here are the steps you need to follow:• Choose an insurance premium calculator • Choose the model and make of your two-wheeler • Select the year of purchase • Select the city where your two-wheeler is registered • Disclose whether you have any no-claim bonus in the previous year from any other policy • Submit the details
Once the calculator receives your details, it will show various insurance policy options along with the premium amount. You can browse through different offers and choose one that fits both your budget and specific requirements.
Many individuals shy away from purchasing an insurance policy as they are not sure about how is auto insurance calculated. Learning how to calculate two-wheeler insurance is an integral part of your journey as a policyholder, especially if you are keen to get the best value for your hard-earned money. So, whenever you are in the market looking for a new bike insurance policy, don’t forget to implement these tips.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.