While opting for a bike insurance or two-wheeler insurance, the first point to come to one’s mind would be the cost of the insurance. This cost is the premium paid for the insurance. In other words, premium is the amount that the insurance company charges for the coverage they provide. To get an estimate of the premium to be paid, one can use tools like a two wheeler insurance premium calculator. The online tool is available on the websites of insurance providers and insurance web aggregators.
What is Two Wheeler Insurance Premium Calculator?
A two wheeler insurance premium calculator is an online tool which provides an estimate of the premium to be paid to the insurance provider for the two wheeler insurance. The tool uses certain personal and plan details and then processes them to calculate an approximate premium value to be paid towards the two-wheeler insurance policy. These tools are free and can be used to compare different policies and companies.
Details Required for Using Two Wheeler Insurance Premium Calculator
Using a two wheeler insurance premium calculator is not difficult. Certain details are required for the calculation. They are:
|Vehicle Details||Plan Details||Personal Details|
|Vehicle Registration No.||Required Coverage||Name|
|Company/Bran of the vehicle||Policy Term (Long or short term)||Date of Birth|
|Model and cubic capacity of the vehicle||Premium Payment Frequency||Mobile Number|
|Year of Registration||Add-On Covers (if any)||e-mail ID|
|City of Registration||Pin-code|
Factors Affecting Two Wheeler Insurance Premium Value
In order to ascertain the closest estimate premium value for a two wheeler insurance, certain factors help in deciding the same. These are:
- Age of vehicle: The age of the bike or two wheeler is an important factor in determining the amount of premium to be paid. The reason is quite simple – an older vehicle demands more service and is more prone to engine breakdowns and related occurrences while a new vehicle doesn’t. Thus, an old vehicle has lower premium.
- Insured Declared Value (IDV): IDV is basically the sum assured you get on making theft claims or total damage claims. IDV and premium are directly related, i.e. higher IDV means higher coverage and thus, higher premium to be paid and vice versa.
- Engine Capacity/Cubic Centimetre Capacity (cc): A vehicle having a lower CC will have lower premium for the bike insurance. The premium will be higher for a vehicle with higher CC. This is because a lower cc means the price of the bike or two-wheeler is lower. Higher cc vehicles will be expensive, thus, the premium amount for this insurance will be higher.
- Model and make of vehicle: If you own a high-end two-wheeler like a cruise two-wheeler (Royal Enfield, Harley Davidson, etc.), premium for two-wheeler insurance will go up as compared to an everyday two-wheeler (e.g. Hero Splendor). This is because service of high-end two wheeler is expensive and thus, the claim amount is also higher.
How to Use Premium Calculator
Using a bike insurance premium calculator is not that difficult a task and thus, requires only few simple steps to be followed which are:
- Visit the selected official website of the insurance provider
- Some websites have a separate tab flashing ‘Premium Calculator’, click on that
- Choose the plan
- Enter the required details
- If there is no particular tab, go to the specific plan for which you wish to check the premium
- Click on option ‘Buy Now’ or ‘Calculate Premium’
- Enter the details asked and submit the same
When all is done, you will be shown an estimate value of premium with and without GST.
How to Use Premium Calculator for Older Vehicles
Earlier we discussed about premium calculation for new two wheeler vehicles but not every-one goes for these. Some still prefer going for older vehicles or second-hand vehicles.
During the premium calculation for old two-wheeler vehicles/ second-hand bikes, two main factors are considered- the age of the bike and the IDV (Insured Declared Value) of the bike, apart from the model of the bike, etc.
- Age of the vehicle is directly proportional to the premium to be paid, i.e. less the age, less will be the premium and vice versa
- Likewise, for Insured Declared Value (IDV). In case of higher IDV, the premium will be higher. If the IDV or the market value is lower, the premium will also be lower
Two Wheeler Insurance Premium Calculation
Below we have an example of premium calculator for two-wheeler insurance so as to throw light on how a two-wheeler insurance premium calculator works:
Model: Royal Enfield Thunderbird
Price: Rs.1.72 lakh
Policy: Own Damage + Third Party Cover
Here, year of registration is considered and premium along with Insured Declared Value (IDV) is calculated:
|Age of the Vehicle||Insured Declared Value (IDV)||Annual Premium (excludes GST)|
|6 months||Rs. 87,736||Rs. 2,401|
|1 Years||Rs. 76,769||Rs. 2,224|
When using bike insurance premium calculator, it is advised to consider certain important points so as to get the best out of it. These aspects are:
- To get the closest premium value, you should enter valid details only (e.g. age of the vehicle, policy cover required, etc.)
- Use the calculator for different sum assured so as to get a better idea about the affordability of the plan
- Premium at the time of renewal can be reduced, in case you haven’t made any claims in the previous policy term
- You should avoid making claims for petty amounts that you can pay straight from your pocket so as to retain the No-Claim Bonus (discount given on premium at the time of renewal)
- You should opt for long-term two wheeler insurance plans as this will save you from yearly renewals and also provide better discounts
- Scrutinize add-on covers before adding these to the policy as they will up the premium value and won’t be favourable if you don’t really need those
- Install anti-theft device in your vehicle so as to get discount on the premium as most of the companies do consider this
Advantages of Two Wheeler Insurance Premium Calculator
There are multiple benefits of using a bike insurance premium calculator. Some are listed below:
- Saves time and provides various quotes for better comparison
- Free of cost, thus can be used multiple times
- No registration is required, thus a non-policyholder can easily access a bike insurance calculator
- User-friendly tool can be used on mobiles and computers alike
Also Read About: What is Car Insurance Coverage, Claim & Renewal
Q1. What are the documents required for making two-wheeler insurance claims?
Documents required for making claims for bike insurance are singed & filled claim form, policy document, copy valid driving license, copy of registration certificate (RC), details of accident spot (if any), details of witness (if any), FIR copy, etc.
Q2. Is it compulsory to get a two-wheeler insurance?
Yes. If you own a bike or any other two-wheeler and want to take it on road, you need to have insurance for it and that too, third-party liability cover is the least you should have.
Q3. How does voluntary excess affect premium calculation for two-wheeler insurance?
With any type of bike insurance, a particular amount is deducted and then claims are settled. This deductible amount is to be borne by the policyholder. This is a compulsory thing. But if you go for voluntary deductibles, you are taking responsibility of extra as deductible. In such cases, premium goes lower.