How to Calculate Two Wheeler Insurance Premium in India

How Can You Get your Bike Insured?

Getting insurance for your bike is a smart way to secure the huge investment that you make while purchasing the vehicle. However, you must ensure that you buy the appropriate insurance policy for your vehicle so that it protects the vehicle from all forms of expenses due to damage. An extensive amount of research is required in choosing the insurance policy which best suits your vehicle. You can contact the dealers and insurance agents if you have a problem in selecting the best type of insurance for your vehicle.

What Is the Importance of Two-Wheeler Insurance?

It is important to get your vehicle insured since it protects your vehicle from any form of damages. The most significant reason to have insurance for your vehicle is that you can have a cashless settlement with the repairing store when your vehicle suffers damage due to an accident. Many insurance schemes have tie-ups with several garages to offer the feature of cashless settlement to its customers. If you have any third-party property damage or third-party physical injury, your insurance will offer your compensation for that. You can also get immediate claims assistance and around-the-clock customer care. Usually, all bike insurance policies are valid for a year. You must renew your policy before the expiry date to avoid a lapse in the insurance. Most of the insurance providers permit you to renew your policy online.

In India, it is mandatory to get vehicle insurance. This is the reason why many dealers of these vehicles offer insurance packaged with two-wheeler purchase. Your insurance must offer sufficient cover for damaged caused due to accidents, human-made or natural calamities. Third-party legal liability offers protection against the legal liability  stemming out of an injury/death and property damage of the third-party due to the accident

Calculation of Two-Wheeler Insurance Premium

Online Insurance Policy is a great option since you don’t need an intermediary, it’s faster, there is less paperwork involved. You can compare the bike insurance premium rates online, either by visiting different insurance providers’ websites separately or by checking the premium rates on the insurance aggregators' websites.

You must ensure that you can use the two-wheeler insurance premium calculator while making the decision because it could help you in evaluating your reservations and provide you with the options that are most suitable for your case. There is a large number of online calculators that are available for free. You can fill out the basic details linked with your vehicle such as the IDV of the vehicle, capacity of the vehicle, area of registration and age of vehicle for calculating the premium amount. IDV is the amount that you are assured to get from the insurer in case of damage or theft. It is estimated by reducing the depreciation from the selling price of the vehicle. IDV doesn't incorporate the registration number and insurance cost. You can also pick the mode of payment, by using your credit card, debit card or net banking.

What Are the Factors Affecting Two-Wheeler Insurance Premium?

The premium that is required to be paid on two-wheeler insurance depends on many factors. Some of the factors are explained below:

Type of Insurance Policy

The type of insurance policy that you choose is a major determinant of your insurance premium. The premium for standard third-party motor insurance is lower than a traditional motor insurance policy.

Two-Wheeler Type And the Performance Delivered

The cost of your insurance depends on the type of your vehicle to a large extent. The model of the vehicle, the location where the vehicle is enlisted, and the frills installed in the bike also help in estimating the premium amount. The Cubic Capacity (CC) of your vehicle influences the premium amount. The premium for high-end bikes is higher as compared to the commuter vehicles.

Additional Insurance Covers Opted

You may pick a single or more additional insurance covers for enhancing the coverage of your insurance policy. A few instances are the co-passenger accident cover, cover for the accessories of the vehicle, nil-devaluation cover etc. These add-on covers can be acquired on the payment of the extra cost which can eventually raise the amount of premium.

No Claim Bonus (NCB)

NCB in simple words is a reward which the insurance agencies offer the policyholders for not declaring claims on their insurance policy for a year or more. It acts as a motivation for the drivers for riding safely. A No Claim Bonus reduces your protection premium by at least 50% considering the number of claim-free years.

Voluntary Excess

If harm/misfortune is caused to the bike due to an unpredictable situation, a part of the claim must be paid from the insured individual's pocket. If the policyholder decides to contribute more money from their pockets while claiming, the premium amount on the insurance will be reduced. This is known as voluntary excess.

Discounts Offered By Insurance Providers

With rising competition in the insurance industry, the insurance agencies nowadays are offering many kinds of rebates and discounts. For instance, an individual might choose to buy a multi-year insurance policy for a tenure of three years which could help him/her in saving up on their insurance premium.