Owning a bike comes with the freedom to visit anywhere without having to wait for public conveyance. However, being a bike owner also means you must buy bike insurance. Since there are several types of bike insurance policies available in the market, you may feel confused about selecting the right one. Before buying any suitable plan, you would want to compare different plans in terms of features, benefits, and price. To make the bike insurance comparison process easier, you can benefit from using an online bike insurance calculator.
As the name suggests, a bike insurance calculator can help you compute the premium payable toward a particular bike insurance policy. Let’s find out more about its working, benefits, and more.
What is a Bike Insurance Premium Calculator?
A bike insurance calculator is a free online tool using which you can get an estimated premium of a two-wheeler insurance plan. Most insurance companies and even insurance aggregators have this tool available on their official websites to make it easier for policy buyers to get a premium estimate. Depending on the estimated premium, you can compare different policies and then make an informed buying decision.
To get the bike insurance premium estimate, you need to enter certain details in the calculator, such as the bike’s make and model, variant, RTO location, purchase year, and similar others. Based on the value of these parameters, the bike insurance premium calculator gives you an estimated amount payable to buy the policy. Since the tool provides instant results, it helps save time in comparing multiple bike insurance policies from one or more insurers.
Complete List of Components/Parameters Used in a Bike Insurance Calculator
- Own damage insurance coverage
- Third-party insurance coverage
- Insured Declared Value (IDV)
- Make and model of the bike
- Year of purchase
- No Claim Bonus (NCB)
- Personal accident cover if any
- Bike insurance add-ons if any
Benefits of Using a Bike Insurance Calculator
Knowing the cost of any insurance product is crucial before you buy it. Similarly, you must know the cost of a bike insurance policy before making the purchase decision. A trusted two-wheeler insurance premium calculator makes you avail of the following benefits:
Using a bike insurance calculator, you can get to understand how one policy is different from the other in terms of pricing. By selecting the right combination of parameters (mentioned above), you can zero in on the best bike insurance coverage.
Reduction in premium
A two-wheeler vehicle insurance premium calculator also helps you understand how the premium varies with different parameters. This way, you can adjust the insurance coverage and hence, the bike insurance premium to make it fit your budget.
No external dependency
Every online bike insurance calculator is easy to use, which means you need not depend on any external agency or middlemen to calculate bike insurance premiums. Hence, the selection of a suitable policy remains unaffected by any external influence.
Instant insurance premium quotes
You can instantly get a quote for the insurance premium of a motorbike, electric bike, or scooter based on the information entered into the calculator.
Selection of the right IDV
The tool also helps in selecting a suitable IDV that ensures you get adequate compensation in case of bike theft or total loss.
Flexibility to select bike insurance add-ons
An online bike insurance calculator allows you to include only the suitable add-on covers if needed. Keep in mind that these add-ons are added by paying an extra amount other than the base premium.
Also Read: All About Motor Insurance
How to Use a Bike Insurance Calculator?
The intuitive design and interface of most online bike insurance premium calculators make them easy to use. Given below are some of the general steps involved in using a bike insurance calculator online:
- Visit reliable websites having a bike insurance calculator built on them
- Enter the two-wheeler information – model, make, and variant in respective fields
- Enter the ex-showroom price, year of bike purchase, and the city where your vehicle is registered if asked
- Select whether you are buying a new policy or renewing the existing one (you may also choose to switch to some other insurer at this stage)
- Select whether you have filed a bike insurance claim in the last year
- Submit the information you entered and the calculator will show you an estimate of the premium payable
- If you are using the bike insurance calculator on an insurance aggregator’s website, you can also check multiple plans and get quotes from different insurers altogether
- Select a suitable plan and pay the premium online for an instant policy purchase
What is a Comprehensive Bike Insurance Premium Calculator?
A comprehensive bike insurance calculator helps two-wheeler vehicle owners in knowing the estimated cost of buying or renewing a comprehensive policy. This type of policy covers both third-party liabilities and own damage.
Some of the crucial parameters considered by this type of calculator are own damage cover, bike age, IDV, its make and model, third-party insurance cover, NCB, etc.
You May Also Like to Read: What is Motor Vehicle Act, 1988?
What is a Third-Party Bike Insurance Premium Calculator?
As the name suggests, this type of online calculator helps in calculating the premium estimate for a third-party two-wheeler insurance plan. Some of the crucial parameters considered by this calculator include the chosen third-party liability coverage, bike engine capacity (in cc), personal accident cover for the owner-driver, and pillion rider cover.
Note: The Insurance Regulatory & Development Authority of India (IRDAI) announced the premium rates for third-party bike insurance as per the engine capacity (in cc) as given in the table below:
|Bike engine capacity
|Up to 75 cc
|Above 75 cc to 150 cc
|Above 150 cc to 350 cc
|Above 350 cc
Disclaimer: The premium rates mentioned in the table above may vary in terms of bike’s age, make and model, and city of registration.
Two Wheeler Insurance Premium Calculator for New Bikes
A two wheeler vehicle insurance premium calculator helps bike owners in insuring their newly purchased vehicles. To use a new bike insurance calculator, you will need the following details:
- Name of the bike manufacturer
- Year of manufacture
- Model and variant of the chosen bike
- Registration state and city
Two Wheeler Insurance Premium Calculator for Old Bikes
In case the existing insurance policy for your old bike is due for renewal, you can also use a bike insurance calculator to check the reduction in the premium payable over time. It is because both premium and IDV reduce as the bike ages. To use an old bike insurance calculator, you will need the following details:
- Bike make and model
- Bike variant
- City and date of registration
- Insurance claim history if any
- Depreciated value
Also Read: Why Buy Activa Insurance?
Factors That Affect Two Wheeler Insurance Premium
Type of insurance coverage
It is up to you to decide which type of insurance coverage you would want to buy for your bike – third party or comprehensive. Depending on your selection, the premium will vary. In general, a comprehensive bike insurance premium is higher than a third-party insurance premium.
Make and model of your bike
The insurance premium of a low-end bike that requires low maintenance is comparatively more affordable than a high-end bike model that is quite expensive to maintain.
Age of your bike
The market value of a newly-purchased bike is higher, which is why you have to pay a higher premium for its bike insurance policy. On the other hand, an old bike has a lower market value and hence, a lower premium.
Engine capacity (cc) of your bike
A bike with a low engine cubic capacity (cc) will be available at a lower premium than a bike with higher CC.
Insured Declared Value (IDV)
The IDV in bike insurance is also directly proportional to the insurance premium payable. Since new bikes have high IDV, their insurance premiums are higher.
Selected bike insurance add-ons
The number of add-ons you select over and above the base bike insurance policy also causes the premium to increase.
How to Reduce the Bike Insurance Premium?
Maintain good riding record
When you ride safely and maintain a good riding record, you can save yourself from making any unnecessary bike insurance claims. In doing so, you will get NCB which will reduce the premium amount.
Add voluntary deductibles
You can choose a higher deductible at the time of buying a bike insurance policy to reduce the premium payable. Keep in mind that a higher deductible will increase your share in the co-payment at the time of claim settlement.
Select necessary add-ons only
While there are several bike insurance add-ons available, you need not include them all with the base policy. Select the ones that you truly need to keep the overall premium low.
Renew bike insurance timely
Failing to renew the policy on time may cause policy lapse along with loss of NCB benefit. If you choose to renew the policy after its expiry date, you may need to pay certain additional charges that will ultimately increase the amount payable.
Install anti-theft devices
Installation of anti-theft devices that are certified by the ARAI can make you benefit from an additional discount on the premium.
Buy bike insurance online
Online bike insurance purchase is more economical as it allows the insurers to save on operational costs and local agent’s commission. These savings are translated to policy buyers like you in the form of a lower premium.
Bike Insurance Calculator FAQs
What does compulsory deductible mean in bike insurance?
A compulsory deductible is the share of the claim amount that has to be borne by the policyholder at the time of claim settlement under bike insurance.
What should I check before switching to a better two-wheeler insurance provider?
Check for round-the-clock customer support, network garages nearby, insurer’s claim settlement ratio, add-ons, policy inclusions and exclusions.
Do I need to submit physical document copies while buying bike insurance online?
In the online two-wheeler insurance purchase process, there is least paperwork involved. However, you might be asked to submit digital copies of the documents.
How long does it take to get the bike insurance policy after purchasing it online?
In most cases, the bike insurers send the soft copy of the policy almost instantly to the registered email address once the premium payment is successful.
What happens to the NCB on changing a bike insurance company?
In case you switch to a different insurer, you can opt for an NCB transfer. Even after the insurer is changed, your NCB remains intact.