The amount an individual pays in order to purchase an insurance policy is known as insurance premium. Calculating premiums can be complicated as there are various factors associated with it. However, the advent of technology has made the process of calculating premiums simple. A premium calculator is an online tool, which simplifies the process by accurately calculating the amount.
The premium of two-wheeler insurance is calculated with the help of a two-wheeler insurance premium calculator. It is made of certain components, which help to obtain accurate calculation. Here’s a closer look at those components of a two-wheeler insurance premium calculator:
Components of the two-wheeler insurance premium calculator:
- The tenure of the policy
- Available riders or add-ons
- Insured Declared Value (IDV)
- No Claim Bonus (NCB)
Every bike owner must compulsorily own a two-wheeler insurance policy. However, the policyholder must know the top five factors that impact two-wheeler insurance premium. Go through the following to understand the factors, which determine the premium of bike insurance.
Factors that impact two-wheeler insurance premium:
Purchasing a fancy bike with advanced features will not only cost more but also entails paying high premiums. Therefore, see to it that you buy a bike that fulfils your basic traveling needs. In simpler terms, the simpler the bike, the lesser the premiums, and vice versa.
Cubic capacity (CC)
Cubic capacity is the volume of the engine’s cylinder. It is also considered as one of the most crucial factors while purchasing two-wheeler insurance. Moreover, it is specified in the details of the name and model of your bike.
When you buy bike insurance online, you can claim for the repair expenses incurred in case of an accident. However, if you don’t file for a claim during the policy year, the insurer will offer you a discount on your bike insurance renewal. This discount is nothing but NCB. Generally, NCB ranges from 10%-50% discount on your premium.
A policyholder must pay a specific amount of a claim from his pocket before the insurer starts paying for the claims. The claim expense paid by the individual is known as a deductible. Therefore, opt for higher deductibles since you might get extra discounts from the insurer. In simple terms, the higher the deductible, the lower the premium.
The location of the policyholder determines the premium. For instance, a policyholder based in an urban area will pay more premium as compared to an individual living in the rural region rural region. Moreover, diversification depends on traffic density and the rate of accidents.
Using a two-wheeler insurance premium calculator is not rocket science. It is a simple process, which takes 10 seconds. Mentioned below are a few steps on how to calculate your premiums online.
Steps to check two-wheeler insurance premium online:
- Visit the website of your insurance provider
- Submit the relevant details like registration number, vehicle age, IDV, and so on.
- Once you have filled in the accurate details, you’ll receive your premium amount online.
To sum up, the online availability of two-wheeler has solved the trouble of physically visiting the insurance company’s office. One can either renew bike insurance or buy bike insurance online. Bajaj two-wheeler insurance available on Bajaj Finserv MARKETS offers variety of options for all the bike owners. Its hassle-free claim procedure and cash-free servicing add value to all your hard-earned savings.
Read our top blogs to know more about two wheeler insurance in India:
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