When buying comprehensive or third-party bike insurance, it is critical to know about your bike insurance provider's add-on covers. Learning about the insurance premium for the shortlisted plans can be done with the help of a motor insurance premium calculator. Because insurance companies tend to collect the premium beforehand, they have to predict how much money they will need to cover the claims in case of an accident.
If the insurance buyer cannot pay the premium, there will be a risk of having their policy cancelled. This is why calculating your bike insurance policy premium before buying any insurance is necessary to eliminate any future conflicts. You can conveniently find bike insurance calculators on the internet. Premium calculators will give you a fair idea regarding the quotes from different insurers. It ultimately helps bike owners to make appropriate purchase decisions.
What is a Bike Insurance Calculator?
The bike insurance premium calculator provides quotes for different insurance plans. There are a plethora of websites with premium calculator tools. This tool can help potential insurance buyers estimate the premium for their bike insurance policy.
A bike insurance calculator reviews and provides the information after entering the required details. Insurance companies offer bike insurance calculators to their customers to accurately estimate insurance premiums. To use the insurance calculator, you may have to fill up the following details:
- Bike's model and date of manufacture
- The existing insurance plan, if you already have one
- Bike's registration number
- The preferred type of insurance policy, for instance, comprehensive or third-party liability insurance policy
After entering the required details, the tool will analyse the details and offer an appropriate quote with accurate premiums to pay. You can calculate the premium either by visiting the official website of the insurance company you want to buy the policy from or by visiting a third-party financial website, such as Paytm Insurance.
Factors to Consider for Calculating the Two-wheeler Insurance Premium
As mentioned earlier, purchasing a bike insurance policy is mandatory in India. Most bike owners purchase the plan based on the insurance premium. Several insurance companies offer quotes for premiums for both comprehensive insurance cover and third-party liability.
When choosing a bike insurance policy, buyers tend to choose the most affordable policy. You should understand the factors that affect the rates to get the most appropriate premium price.
Below are some of the primary factors considered by the insurance companies when calculating the rates for bike insurance premiums:
Insurance Policy Type
The third-party bike insurance is the bare minimum policy that the Government of India mandates, and it only covers third-party damage.
The comprehensive bike insurance policy offers all-around protection and coverage in case of theft, natural disasters, man-made mishaps, accidents, etc. The premium for comprehensive bike insurance is typically higher due to more protection and coverage.
Insurance premiums are highly reliant on your bike type, model, engine's cubic capacity, fuel type, class, manufacturing year, etc. When the cubic capacity of an engine is high, the insurance premium will also be higher. The premium is generally higher for sports and adventure bikes.
The premium rate is also determined based on the past insurance record. If you have filed too many bike insurance claims in the past with your previous insurance company, the new insurance company will provide the policy at a higher premium. The reason for this is that too many claims indicate higher risks. It also shows that the customer has a bad driving record, increasing the probability of accidents and mishaps.
The location of your residence also influences the premium rate. If you live in a rural area, the premium will be lower than that offered in urban areas. The reason for this lies in the associated risk factors. In rural areas, there are fewer chances of road accidents.
Tips on How You Can Save on Two-wheeler Insurance Premiums
The following tips can help you get the most appropriate motor insurance plan at a cost-effective rate. It will save your money and provide you with maximum benefits.
Narrow Down Your Requirements and Needs
The first thing to consider is your needs. Make a list of requirements to easily understand which policy type will be ideal for you. The bike insurance companies charge a lower premium for a regular bike, whereas a sports bike attracts a higher premium rate.
Choose Appropriate Add-ons
A bike insurance add-on offers additional protection that is not included in the basic insurance coverage. It is recommended to choose bike insurance add-on cover wisely. If you feel the basic insurance policy is sufficient, you do not need to purchase add-ons, as these can increase the premium rate.
Renew Your Insurance Before the Due Date
Renewing your two-wheeler vehicle insurance is as important as buying one. If you cannot renew your plan and an accident occurs, your insurance policy will not be valid. In this case, the insurance company will not cover any damages or provide financial assistance. It is critical to renew your bike insurance policy before the due date.
When looking for two-wheeler insurance, you must decide the coverage and benefits you want in your policy. After making a decision, the next thing is to use the bike insurance calculator to learn about the premium you will have to pay. This is where insurance providers such as Paytm Insurance come into play to help buyers get an accurate estimate on their premiums.
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