Before buying a two-wheeler you need to know how to get the right insurance policy plan. You can either get a new bike insurance or renew an existing one depending on the amount of premium you have to pay. One of the safest ways to calculate insurance premiums like a pro is to use a bike insurance calculator. Keep reading this blog till the end to understand how to calculate insurance premiums for bikes and what are the key factors that influence bike insurance premiums.
Why is Vehicle Insurance Premium Calculation Necessary[1]?
The amount you pay regularly to keep your policy covered for your bike or car is known as your vehicle insurance premium. Depending on the conditions of the insurance, premiums may be paid monthly, quarterly, semi-annually, or yearly.
The cost of coverage for a vehicle must be calculated using the vehicle insurance premium calculator. It makes sure the insurer gets paid fairly for the risk they take on. The computation is influenced by a number of variables, such as the make and model of the automobile, the driver's age and experience, location, age, and the kind of coverage selected. This procedure assists in the decision-making of policyholder and insurer regarding insurance coverage.
Key Factors That Influence Bike Insurance Premiums[2]
To understand the factors that significantly influenced the premiums of bike insurance, read the pointers below:
1. Insured Declared Value (IDV)
The IDV stands for Insured Declared Value and this refers to the current market price of your bike. Therefore, it is the maximum cash that the insurer will give if your bike is stolen or if you incur an accident. So, if you have a higher IDV, the premium is higher and vice-versa. Therefore, it is important to have IDV adjusted to meet the current market price of your bike.
2. Type of Coverage
There are two primary types of bike insurance coverage: Comprehensive insurance coverage and third-party insurance coverage. Third-party insurance is mandatory and gives protection to you in case your two-wheeler causes damage to a third party's property. However, comprehensive insurance coverage helps to give your bike coverage against theft, total loss, or damage. Thus, this type of insurance is more costly than third-party insurance but gives a client wider coverage.
3. Bike Age and Condition
The bike's age and condition are other important factors which greatly influence the premium rates. Newer bikes attract higher IDVs hence the associated premiums will be higher than those of older bikes which have low market value due to their depreciation.
4. Geographical Location
Your driving location also affects the premium rates offered to you. Thus, insurance companies offer higher premium rates to bike owners in urban areas as compared to rural areas. So, when you enter your geographical details into a bike calculator, this factor will be considered to estimate the premium amount.
Tips to Calculate and Lower Bike Insurance Premiums[3]
Calculating your bike insurance premium with a clear understanding of these factors can help you secure the best possible rate. Here are some strategies to consider:
● Use a Bike Insurance Calculator
A bike insurance online check can be quickly and easily done using a bike insurance calculator. You just have to enter certain facts about your bike, place of living, and the kind of coverage you need and the calculator will generate the premium amount.
● Adjust Your IDV Wisely
Determining the IDV is important to obtain a reasonable premium from the insurance companies. As much as selecting a lower IDV will mean paying a lesser premium, it will also mean that you will be paid less in the event of total loss. So, you need to make sure that your calculated IDV is based on the current market value of the bike.
● Take Advantage of the No-Claim Bonus (NCB)
The NCB is a rebate that is given to policyholders who have not claimed the policy amount during a particular year. This discount amount will be added to your insurance account and your premium will get reduced over time. So, you can request the insurance company to deduct your NCB at the time of renewal to avoid high premiums.
● Opt for Required Add-Ons Only
A bike insurance plan can come with several add-ons. However, it can cost you extra if you include these benefits in your insurance policy plan. It enables you to assess your requirements and select the add-ons that will be profitable for you.
The Bottom Line
Overall, understanding factors, such as IDV, add-ons, NCB, and deductibles is essential to calculating your bike insurance premium like a pro. You might find a policy that strikes a balance between cost and coverage by carefully evaluating these factors and using online calculators. Use the advice given to reduce rates and maximise the benefits of your bike insurance. Keep in mind that making wise choices now can result in significant savings later.
https://www.insurancedekho.com/bike-insurance/premium-calculator
https://www.bajajallianz.com/general-insurance-calculator/two-wheeler-insurance-premium-calculator.html
https://www.reliancegeneral.co.in/insurance/knowledge-center/insurance-reads/two-wheeler-insurance-cost-factors.aspx?wpsrc=Google+Organic+Search
https://www.policybazaar.com/motor-insurance/bike-insurance-calculator/
https://www.policybazaar.com/motor-insurance/two-wheeler-insurance/articles/how-to-save-money-on-two-wheeler-insurance/
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