If you are new to two-wheeler insurance, you might feel that understanding insurance is complex. Certain aspects and terminologies of two-wheeler insurance can be confusing. But as soon as you dig deeper, you will know that it is not only easy to understand two-wheeler insurance but also to control the cost of your two-wheeler insurance policy. Two-wheeler insurance premium calculator can help you do so. Let’s take a look at how to use a two-wheeler insurance premium calculator:
Two-wheeler insurance premium calculator will be more beneficial when you are buying two-wheeler insurance online. To use the calculator, follow these seven simple steps.
Most of the insurers have a premium calculator for those who wish to buy two-wheeler insurance online. Select your insurer and visit their website.
You will require details like the make and model of your bike, its manufacturing year, its approximate current market value (IDV), details of the previous policy, etc. These factors affect the cost of your bike insurance policy. The details of your previous policy will determine the amount of No Claim Bonus (NCB) you are likely to receive at the time of renewal. You could earn up to 50 percent discount under NCB, for five continuous claim-free years. Thus, if you are looking for a solid discount on your bike insurance, you need to ride safely.
Two types of bike insurance policies are available in India – Third-party Liability Policy and Comprehensive Two-wheeler insurance policy. The former type will cover you in case your bike causes damages to the third party or their property. However, this type of policy will not cover the cost of repairing damages to your bike. On the other hand, a comprehensive policy will offer both – coverage against third-party damages and coverage against own damage. Also, you can customize a comprehensive policy with the help of Add-ons.
The next steps are only available with a comprehensive policy:
IDV i.e. Insured Declared Value is nothing but the approximate market value of your bike. IDV is the primary factor for calculating the cost of your policy. You are given a choice to set this value. Setting a higher IDV at the time of purchase will increase the cost of your bike insurance policy. Whereas setting a lower value will result in a lower claim amount if you raise a claim against the policy. IDV is also the maximum amount paid by the insurer if your bike is stolen or gets damaged beyond repair i.e. if it suffers “total loss”.
As mentioned earlier, you can customize your two-wheeler insurance policy with Add-ons. Some of the popular Add-ons are Zero Depreciation Add-on, Pillion Rider Cover, Roadside Assistance Cover, and Accessories Cover. Remember that Add-ons increase the cost of your bike insurance policy. Thus, buy only those coverages which are necessary for your requirements.
The deductible is the amount that you need to bear at the time of claim. The idea behind deductibles is to discourage raising a claim and promote safe driving. Deductibles are of two types – Compulsory and Voluntary. You can set the amount of voluntary deductible. Setting a higher deductible will decrease the cost of your bike insurance policy, however, this also means that your claim amount will decrease.
Once you fill in all the details, click on ‘Calculate Premium’ button to know the approximate cost of your bike insurance policy. You can tweak the various factors like IDV, Deductibles, etc. to see how they affect the cost of your two-wheeler insurance policy.