Digitisation has changed the way we buy products and services. This includes insurance policies too. Today, most prominent insurers like Tata AIG and others are offering online 3rd party bike insurance and Comprehensive Bike Insurance policies where bike owners can purchase the policy using a zero-contact process.
In India, it is mandatory to have a third-party bike insurance policy. The IRDAI (Insurance Regulatory and Development Authority of India) has mandated all insurance companies to offer third-party bike insurance at the premium rates declared by it. However, these plans do not offer coverage for damages to you or your two-wheeler. This is where a comprehensive bike insurance plan steps in.
Riding a two-wheeler in India is riddled with the risk of accident or mishap. Hence, many bike owners have started opting for a comprehensive policy. When you buy a comprehensive two-wheeler insurance policy, the insurer offers coverage for third-party liability and damages to your bike. These policies also allow you to choose add-on covers to customise the coverage based on your needs. These add-ons are charged and impact the overall premium of your bike insurance plan.
Today, if you want to purchase two-wheeler insurance, you can go online to compare plans and insurance premiums using an online two-wheeler insurance premium calculator.
Most platforms offer a free bike insurance calculator to help you determine the premium of the policy, including the selected add-ons. In this article, we will discuss how you can make the most of an insurance premium calculator for two-wheelers.
The Premium of Bike Insurance
Before we look at why you need a bike insurance calculator, let’s look at the factors that impact the premium of bike insurance:
- Type of policy – The premium of a third-party policy is determined by the IRDAI and is the same across insurers. On the other hand, the premium of a comprehensive plan includes the third-party premium plus the coverage offered for your bike. Hence, it is higher than the third-party liability-only policy.
- Type of two-wheeler – For third-party coverage, the engine capacity of the bike is the deciding factor for premium. Bikes with a higher engine capacity have a higher premium compared to those with lower CCs. On the other hand, if you are opting for a comprehensive plan, then the insurer will look at the age of the bike, its mode, fuel type, distance travelled, and place of registration, among other factors, for premium calculation.
- Current Price of the bike – Depending on the brand, age, condition, and demand of the bike you own, the insurer calculates its market value. This plays a big role in determining the premium of the insurance policy.
- Modifications – Many bike owners modify their vehicles for speed, performance, or looks. These modifications are not covered by standard bike insurance policies. Also, modifications can increase the premium of the plan.
- Add-ons – You can use add-on covers to boost the coverage offered by the bike insurance plan. However, these covers can increase the premium amount.
How Does a Bike Insurance Calculator Help?
When you decide to purchase a bike insurance policy online, you have the benefit of going through the websites of different providers and exploring different types of plans. While you might find some of these plans good for your car, the best way to find the perfect fit is to compare them, including the premium. A bike insurance calculator allows you to calculate the premium for the policy that you choose, including the add-ons. This can help you compare plans and providers and choose the most cost-efficient policy for your needs.
How To Use a Two-Wheeler Insurance Calculator?
When you decide to purchase a comprehensive bike insurance policy, you can go to the website of the insurer to make the purchase. Most insurers offer a free bike insurance calculator. Visit the page of the calculator and follow the steps mentioned below:
- Enter the details of the bike, like its make and model
- Provide the ex-showroom price and details of the city and year of purchase
- Provide details of any claims made in the past year
- The calculator will display the Insured Declared Value (IDV) of the bike
- Choose the type of policy you want to buy – third-party or comprehensive
- Choose the add-on covers you need
The calculator now displays the bike insurance premium that you will pay for the insurance policy.
Buying an online bike insurance policy can help you reduce costs and gain more control over the policy selection process. You can also install an anti-theft device and opt for a multi-year policy to reduce the premium of the plan. An online two-wheeler insurance premium calculator helps you determine the premium of your desired policy and customise it to find the perfect balance between costs and features. Use it optimally and get your bike the best protection it deserves at an affordable price. Good Luck!