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Benefits of Bike Insurance Premium Calculator

19 July 2022, 7:16 PM

A two-wheeler insurance calculator aids you in estimating the premium payable for purchasing a bike insurance policy from various insurance companies. To get an estimate of different bike insurance policy quotes, calculate the premium using this digital tool before buying the policy.

With the help of this digital instrument, policyholders can generate a quote by entering the two-wheeler’s date of registration, make and model, city of registration, and the type of bike insurance policy like comprehensive bike insurance or standalone bike insurance. Whereas the Insurance Regulatory and Development Authority of India (IRDAI) sets the third-party bike insurance premium rates based on the cubic capacity of the vehicle. And the rates change every year.

Also, there is an option to further optimize it by choosing add-on covers or adding a no-claim bonus. The premium cost shown by the two-wheeler insurance premium calculator varies based on the entered specifications.

Read on to know more about the multiple benefits of using a bike insurance premium calculator.

Top 8 Benefits of Using a Bike Insurance Premium Calculator

It is important to compare the premium quotes for various insurance plans to make the correct purchase decision. Below are some benefits derived from using a two-wheeler insurance premium calculator.

1. It Avoids High Bike Insurance Premiums

Using a bike insurance premium calculator, policyholders can avoid paying a higher premium by identifying the items that increase the amount. Therefore, with the help of this digital calculator, policyholders can choose a policy that fits their budget.

2. It Helps Policyholders Make an Informed Call

Everyone wants to make an informed decision when it comes to purchasing a bike insurance policy. A bike insurance calculator can help the policyholder compare premium amounts for multiple insurance plans against the coverage provided. Furthermore, it helps determine the level of protection required for the two-wheeler and the best plan offering the same at the most affordable price.

3. It Ensures Cost-effectiveness

To save money, something more is required in addition to identifying an affordable plan. It is essential to understand how multiple factors affect the price of a bike insurance policy. You can choose a pocket-friendly bike insurance plan by identifying the right combination of factors using a bike insurance premium calculator. 

4. It Protects from Frauds

The bike insurance market is flooded by bike insurance companies that offer various bike insurance policies. Without proper knowledge and calculation of the prices, it is very easy for them to trick policyholders into paying more, more so when applying for the policy through agents. The clear information shown by the bike insurance premium calculator helps you estimate the premium and hence prevents you from getting influenced by others who want to trick you.

5. It Enables the Selection of the Perfect Plan 

The basic use of a two-wheeler insurance premium calculator is to compute the premium quotes for multiple bike insurance policies. By comparing the premium quotes, the policyholder can choose the best insurance plan with a premium price that fits their budget.

6. It Helps Determine the Ideal IDV

Insured declared value (IDV) in bike insurance is the maximum amount the insurance company can reimburse the policyholder in case of a claim. A bike insurance premium calculator enables policyholders to calculate the ideal IDV for their two-wheelers. 

7. It Helps Select an Apt Mix of Add-on Covers

Bike insurance add-on covers provide the required additional protection to the two-wheeler owners. Different add-ons can alter the insurance premium considerably. For this purpose, a bike insurance premium calculator comes in handy. It helps the policyholder select the right mix of add-ons without significantly increasing the insurance premium.

8. It Eliminates the Need for an Agent

In today’s world, technology is reaching new heights every day. Gone are the days when an agent consultation was thought necessary to choose the best bike insurance policy. A bike insurance calculator allows policyholders to compare multiple insurance plans based on coverage and premium on their own.

The Bottom Line

A two-wheeler insurance premium calculator can be used for both old and new bikes. It doesn’t matter if it is the first insurance plan for a new bike or a renewal of a plan for an old bike; the tool holds good in both cases. If you're looking for a good bike insurance premium calculator, try the one provided by Paytm Insurance. 



1. How is bike insurance premium calculated in India?

Multiple factors such as the type of bike insurance policy, RTO location, model and variant of the bike, bike registration city, etc, determine the premium calculation. 

2. How is the two-wheeler insurance renewal premium calculated?

To enjoy continued coverage and benefits, it is necessary to renew the bike insurance policy when it nears the expiry date. The policyholder can generate quotes instantly while renewing the existing bike insurance by simply clicking on “calculate renewal bike insurance premium” on a premium calculator. 

3. How can you calculate the premium factoring in no claim bonus benefits?

No-claim bonus (NCB) is rewarded to the policyholder as a token of appreciation for using the bike carefully and not claiming any money. The premium discounts can go up to 50% even if you don't claim for five successive policy years, starting from the policy inception date. Some bike insurance calculators may factor in NCB to calculate your renewal premium.

4. How is the insurance premium calculated for a second-hand bike?

The premium calculation for a second-hand bike is similar to that of a new bike. Factors such as the type of bike insurance, make and model of the bike, bike registration city, etc, contribute to premium calculations. However, depending on the age of the motorcycle, the premium of a second-hand bike might be higher. 

5. How to calculate the IDV?

The IDV is determined by deducting depreciation from the manufacturer’s listed selling price. It excludes registration and insurance costs. In case insurance is required for accessories that are not factory fitted, a separate IDV calculation takes place at extra cost.  

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