How to Calculate the Insurance Premium for Your Old Bike?

It is always better to be safe than sorry and be prepared to face unforeseen contingencies that may lead to financial losses. This applies to bike owners too. Getting insurance done for your bike is mandatory, be it a brand new one or an old possession that you do not want to part with. Not only does it ensure your financial security, but also peace of mind should any mishap happen with your two-wheeler. 

No matter how old your first bike is, it may still be valuable to you, and you will want to ride it someday. Hence, to avoid undue worries, you can easily get two-wheeler insurance for your old vehicle. To get the correct premium calculation for your previously-owner bike, you may follow the following tips to get the best deal and save on it the maximum.

What is Old Bike Insurance?

An old bike is never safe to ride unless it has gone through proper servicing; this is a fact we should accept. A decade-old two-wheeler can be termed really old. However, depreciation on any asset, including bikes, starts from the day of purchase. A third-party liability cover is mandatory for a bike. But a comprehensive insurance policy ensures maximum coverage. So, buy the same for your old bike.

Two-wheeler Insurance Premium Calculator for Used Bikes

Nowadays, a digital instrument has been designed to make it easy to calculate the premium amount of an insurance plan for policyholders. They can personalise the amount of premium as per their requirements and suitability. To get the right premium for your two-wheeler insurance online, you need to enter a few details on the premium calculator, including bike's make, model, variant, RTO location and purchase year.

The bike insurance calculator would provide you with the premium amount payable from different insurance companies once you punch in these details. This way, you can compare and select the most price-friendly plan per your needs with a few clicks. However, this calculation methodology may be different for old and new bikes. 

To calculate the premium amount for an insurance plan for an old two-wheeler, you would require to give the following details:

• The make, model and variant of the two-wheeler.
• Fuel type.
• Current two-wheeler insurance policy details (if any).
• The state and city where the two-wheeler has been registered.
• All details and reports of your no-claim bonus (NCB) or past claims.

Once you mention these details properly, the two-wheeler calculator can automatically calculate the premium amount for your insurance plan with different insurance providers. You can then select the one that suits your needs the best. 

Read more - Benefits of Bike Insurance Premium Calculator

Factors That Determine the Two-wheeler Insurance Premium Calculation 

Factors that govern the premium amount when taking two-wheeler insurance are:

1. The Age of the Bike

The age of the bike is critical in setting the insurance premium payable. Usually, the IDV of the vehicle reduces as the bike ages, resulting in a reduced own damage insurance premium component of the vehicle over time. A comprehensive two-wheeler insurance premium contains components such as own damage, third-party, personal accident cover, add-ons(if any), etc. A standalone own damage policy would have all, except for third-party. In contrast, a third-party liability policy will have premium components for third-party damage/loss and personal accident cover.

2. The Age of the Bike Owner

It is believed that riders aged between 18 and 25 are more prone to bike accidents than those above 25 years of age. Hence the former age group has to pay a higher premium than the latter. 

3. Fuel Type

Two-wheelers running on CNG (compressed natural gas) have higher insurance premiums than those running on diesel and petrol. 

4. Geographical Location

One of the determining factors for the amount of insurance premium on bikes is where they would be driven regularly. Areas with higher traffic tendency and high risk, like metro cities, are prone to rough usage and more accidents; hence, the premium amount here is higher than in areas with less traffic and low risk. 

5. Insured Declared Value (IDV)

The insured declared value is the maximum amount an insurance provider pays to the two-wheeler owner in case of theft or any other loss. This may vary from one policyholder to another. Factors that determine it are model, brand, manufacturer’s selling price, etc. The higher the IDV, the higher the premium payable amount on insurance.

6. Cubic Capacity

The higher the cubic capacity of a bike, the higher its premium amount is. 

7. No-claim Bonus

If the insured does not make any claim on their previous year’s insurance policy, they are entitled to a no-claim bonus discount on the current year’s premium amount.

8. Installation of ARAI-approved Anti-theft Devices

Vehicles with ARAI or Automotive Research Association of India-approved anti-theft devices are entitled to get 2.5% off on the insurance premium payable.

Final Take

It is essential to insure your old bike against damage through fire or any event that is beyond control like theft or any liability which may arise due to the damage to any third-party property resulting from an accident involving your bike. Besides, bike insurance immunes you against any liability which may occur due to bodily injury to any third party. Besides, having an idea of the insurance premium will only help you choose the right policy covering you for a maximum by paying the bike insurance price you are comfortable with.

Read more - 6 Amazing Benefits of Using a Bike Insurance Premium Calculator