Two-wheeler insurance policy serves as a solution for the unforeseen events of life. It provides financial security at the cost of the premiums. The insurance premiums for a two-wheeler may differ from one insurer to another, from one policy type to another. You may find different costs for a bike insurance policy for the same bike. There are several factors that play their role in determining the two-wheeler insurance premium.
In this age of digitalization, there are several two wheeler insurance premium calculator available online that take into consideration all the factors and show the premium amount in a few seconds. If you are wondering what those factors are, you can scroll down and find out about the 7 variables that impact your two-wheeler insurance premium.
Make and Model
The first variable in the calculation of premium for the two-wheeler insurance policy is definitely the brand and the model of the bike you wish to insure. As the insurance policy provides the expenses of the repair of the insured bike, the higher the value of the bike, the higher is the premium amount. If you have a bike of any local brand, you will require to pay a lower premium while for an imported bike, the premium will be higher.
Age of Bike
The age of the bike is one of the direct factors that influence the two-wheeler insurance premium value. Whenever you request quotes for the two-wheeler insurance policy, the first information to be given to the insurer is the age of the bike. A new bike will amount to a higher premium and the premium amount decreases as the bike gets old.
Insured Declared Value (IDV)
The Insured Declared Value (IDV) is the current market value of the two-wheeler. IDV has a direct relation to the sum insured by the insurance company and consequently the premium amount. The IDV value is revised by the insurer whenever required. The IDV amount is calculated factorizing the depreciation charges of the two-wheeler. The IDV of a new two-wheeler will differ from that of a 3-year-old two-wheeler. It is taken into account at the time of calculation of the two-wheeler insurance premium. Higher the IDV of the two-wheeler, higher will be the two-wheeler insurance premium.
The engine size is measured in cubic capacity (cc) which serves as an important parameter to decide the premium value of a two-wheeler insurance policy. If you have a bike falling in the category of 75cc or less, you will have to pay a lower premium amount whereas a bike having a higher engine capacity will require a higher premium to be paid.
Safety Device and Modification
Every insurance company offers a discount on two-wheeler insurance premium if the bike has a safety device installed. You can opt to install an anti-theft device to avail the discount on the premium. The risk of insuring such a bike is lower and thus, the insurer demands a lower premium.
The two-wheeler insurance premium is based on the value of the two-wheeler. If any modification is made, the value of the two-wheeler may increase due to the expensive accessories installed. Consequently, the two-wheeler insurance premium also increases. It is, therefore, advisable to avoid modification of the two-wheeler if you do not want to pay a higher premium for the insurance policy.
A voluntary deductible is a predetermined amount that the policyholders promise to pay at the time of a claim. While the insurer pays the assured amount at the time of claim settlement, you will have to pay a small percentage as deductible. You have the freedom to choose the maximum limit of voluntary deductible while every insurance company has set its minimum limit. If you prefer to pay a higher deductible, you will have to pay a lower two-wheeler insurance premium.
No Claim Bonus
No Claim Bonus (NCB) can be referred to as a reward by the insurance companies given to the policyholder if he does not make any claim during the tenure of the insurance policy. The policyholders can fetch the advantage of No Claim Bonus at the time of the renewal of the two-wheeler insurance policy.
If a policyholder has a No Claim Bonus, he can use it to avail discounts of the premium at the time of renewal. Almost every insurance company provides a discount upto 50% on the premium of the renewed policy if the policyholder holds a No Claim Bonus. If an individual decides to switch insurer, the No Claim Bonus obtained from the previous insurer can be transferred to the new insurer.
Apart from the above-mentioned factors, the type of insurance policy, add-on covers opted, tenure of the policy and a few more factors influence the value of the two-wheeler insurance premium. To make things simpler, you may use an online two wheeler insurance premium calculator to get the quotes for your bike insurance policy.
You just have to insert a few details such as your name, contact number, email id, add-on opted, make and model of the bike, city, registration date and type of fuel. The two wheeler insurance premium calculator gives you the exact premium amount that you require to pay to the insurance company.