2224 views 7 mins 0 comments

4 Factors to Consider When You Calculate Your Bike Insurance Premium

In Automotive
July 15, 2021
4 Factors to Consider When You Calculate Your Bike Insurance Premium

Out of the many vehicles available for riding around town, the two-wheeler is one of the most preferred choices among the country’s citizens. It allows you to sneak through congested traffic, narrow roads and park the vehicle conveniently at any spot. Since they’re such an integral aspect of your daily routines, you must take extra steps to safeguard them. One of the easiest ways is to buy an appropriate bike insurance policy with suitable premium amounts that can be computed with the help of a two-wheeler insurance premium calculator. An insurance policy will help provide the necessary coverage to your two-wheeler.

Two-Wheeler Insurance Policy:

A bike insurance policy is an insurance policy that will provide you with insurance coverage if something unfortunate happens to your two-wheeler because of an accident, natural disaster or if it’s stolen. Along with this, insurance plans also provide financial assistance if your vehicle causes damages or injuries to any third parties. As per the MVA (Motor Vehicles Act), every bike owner should have a valid insurance policy to drive the vehicle legally on Indian roads. In a two-wheeler insurance policy, you will have to pay a premium amount to the insurance company for a pre-defined period to avail of the insurance benefits.

If you’re planning to purchase bike insurance, it will help if you opted for purchasing it online, as you can:

  1. Make bike insurance online payment.
  2. Carry out online renewal of bike insurance policy.
  3. Get access to all policy features in one place. 

Online buying of bike insurance policy and calculation of premium amounts is a convenient option provided by many insurance companies. However, there are certain factors you must keep in mind when calculating your bike insurance premium.

What are the four factors you must consider while calculating bike insurance premium?

  1. Coverage type:

As per the MVA (Motor Vehicles Act), as a bike owner, you must own a bike insurance policy. You can choose between the third-party liability plan that only provides insurance coverage for damage to third parties or a comprehensive plan, including third-party coverage and personal accident coverage for the bike. The type of coverage you choose will form the basis of the insurance plan. 

If you’ve opted for the third-party insurance plan, the vehicle’s engine capacity is used for calculating the premiums. But, the third-party insurance cover will not help you in the long run if something happens to you or the vehicle. It is advised you must opt for a comprehensive plan. If you opt for a comprehensive insurance plan, you’ll get all-around protection. However, multiple factors are considered in the premium calculation for the comprehensive plan. Along with this, the level of coverage you have included in the insurance policy is a major factor for estimating the premium amount. A higher coverage will result in a higher premium amount.  

  1. Vehicle details and its present date condition:

Your vehicle’s condition is one of the essential aspects considered during premium calculation. Some of the factors considered are:

  • Manufacturing year.
  • Type of fuel used for the bike.
  • Age of the vehicle.
  • Model of the bike.
  • Place of registration. 
  • Valuation of the bike.
  • Excessive accessories added if any.
  • The number of miles clocked.
  • Cubic capacity.

All the components mentioned above are important factors that directly influence the premium amount. Along with this, if your bike is a sports bike or any other high-end motorcycle with a high cubic capacity, the premium amount will be higher than that of a regular bike.

  1. Deductibles:

The deductible is a specified amount you decide to pay from your pocket for any damage repairs of your bike if it gets damaged due to an accident. If you opt for a higher deductible, you will get a reduced premium amount. Therefore, you can lower the premium amount by opting to pay for some of the damages yourself.

  1. Add-ons in the cover:

Your premiums will differ depending on the number of add-ons you have included in the insurance plan. With every add-on you include, the premium amount will rise depending on the add-on’s price. Add-ons are quite effective, as they offer you an enhanced coverage for specific situations. However, you must be mindful of the add-ons that you include in your plan, as a high number of add-ons may lead to a high premium amount. It is advised that you must include only the add-ons that are suitable for you.

Many insurers like TATA AIG offer features like a two-wheeler insurance premium calculator on their websites to assist you in evaluating your insurance premium amount. Therefore, if you purchase the TATA AIG motorbike insurance, you can conduct a bike insurance premium comparison and select the most viable option.

Using a bike insurance premium calculator can be quite beneficial for your bike insurance purchase, as it will:

  1. Help you understand how different parameters affect your bike insurance premium.
  2. Help you make an informed decision by providing you with a detailed explanation of all the costs involved.
  3. Protect you from scams, as you can compare multiple prices and save yourself from paying extra amounts.

With a bike insurance calculator, your process of purchasing the insurance plan becomes easy and seamless.

Summing up:

If you’re planning to purchase a bike insurance plan, it will help if you sought assistance from a bike insurance calculator. With a calculator, you will understand how different factors come into play when deciding on the premium amount. However, when calculating the premium amount, it would help if you considered certain factors like the coverage type, add-ons, etc. They would give you a decent understanding of your insurance plan premium amount.