When you decide to buy a two-wheeler, you also need to think about the two-wheeler insurance policy that you would need for it. There are two types of two-wheeler insurance policies – third-party bike insurance and comprehensive bike insurance. The Motor Vehicles Act of 1988 makes it mandatory for all two-wheelers to have an insurance policy that offers coverage for third-party liabilities. The premium for these policies is declared by the Insurance Regulatory and Development Authority of India (IRDAI) and is the same across all providers. Hence, if you are opting for a third-party liability-only policy, then the premium you will pay will be the same regardless of the insurer you choose. However, when you opt for comprehensive insurance for your two-wheeler, the premium can vary based on a range of factors. Today, we will talk about a bike insurance calculator and how you can use it to reduce the premium of your comprehensive bike insurance policy.
What is a 2 Wheeler Insurance Calculator?
When you opt for a comprehensive bike insurance policy, the insurer calculates the premium based on a range of factors. These also include optional factors like add-on covers and deductibles. Most insurance providers offer a free bike insurance calculator online where you can enter the details of your two-wheeler, add-on covers, and deductibles and get an estimate of the premium before buying the policy.
Factors that Impact the Premium of a Bike Insurance Policy
Here is a list of factors that impact the premium of a bike insurance policy:
- Type of bike: The premium of a bike insurance policy will vary based on the cubic capacity of the two-wheeler. Hence, the type of bike you purchase will determine the premium of the policy.
- Bike’s value: Insuring a costlier bike costs more than a cheaper one.
- Bike modifications: If you have added modified parts to your two-wheeler, then you will have to pay extra to cover them under the policy.
- Anti-theft devices: Installing an approved anti-theft device can reduce the premium of your bike insurance policy
- Riding history: Bike owners with a history of accidents might have to pay a higher premium for a bike insurance policy
- Add-on covers: If you opt for an add-on cover, then the premium amount increases.
- Deductibles: Many insurers allow bike owners to opt for a voluntary deductible that helps reduce the premium amount by reducing the sum assured.
- No Claim Bonus: While renewing your policy, if you have not filed a claim in the previous policy term(s), then many insurers will offer a discount on the premium called the No Claim Bonus.
How Can You Use the Bike Insurance Premium Calculator to Reduce Your Premium?
A bike insurance calculator allows you to calculate two-wheeler insurance premiums with ease. When you use the calculator, you will be required to enter the following details:
- Registration number of your bike
- Previous insurance details (in case you already have insurance and are switching/renewing)
- Your mobile number
- List of add-on covers that you want to opt for
- Voluntary deductible details
- No Claim bonus details
Once you enter the registration number, the calculator should, ideally, automatically fetch the purchase date of your bike. After that, it will require the rest of the information to display the estimated premium amount. If you find the premium to be too high, then you can reduce add-on covers or increase the voluntary deductible to make it more affordable. Hence, you can tweak the factors to customise the policy as per your needs and budget.
Now, in order to reduce the bike insurance premium, you may take the following step:
- Choose an ideal IDV, keeping in mind that a high IDV will increase your premium amount, and a low IDV will lower your insurance payout at the time of claim.
- Evaluate your need for extra cover before choosing any add-on cover to your comprehensive insurance plan
- In case of renewal, do not delay renewing your bike insurance, or you will lose out on your NCB bonus
A comprehensive bike insurance policy can help you manage the costs of repair if your bike gets damaged in an accident, mishap, or disaster. It also offers coverage for the total loss of the bike due to theft or extensive damage. Further, you get coverage for third-party liabilities. While these policies are costlier than third-party liability-only policies, you can use online bike insurance calculators to tweak the coverage and buy a policy that fits your budget.