How to Calculate Two Wheeler Insurance Premium in India?

Two-wheeler insurance is the perfect solution to meet exceptional costs that may arise due to damages caused to your motorcycle. Moreover, in India, it is mandatory to get your bike insured under the Motor Vehicles Act, 1988. Getting insurance for your two-wheeler is quite easy, however, getting the right fit for your and your bike’s requirements may need some brainstorming. There are several policies out there, each meeting different requirements. While buying two-wheeler insurance, most of us keep an eye on the premium amount when comparing policies. Seeing that figure jump with each passing renewal is enough to stress out even the most hardened budgeter.

If you think you need some advice, talk to dealers and friends who have bikes. We’ve broken down the what’s and how’s that go into the calculation of a two-wheeler insurance premium, making it a little easier for you to choose the policy that best suits your requirements.

Importance of Two Wheeler Insurance

The best reason to go for insurance is that when you need to take your two-wheeler to the garage, you can do a cashless settlement. This makes it easier to cover damages caused due to third-party person/property. In fact, a comprehensive bike insurance plan also covers physical injuries caused to the driver or third-party person.

However, it is important to ensure that you renew your policy before it expires in order to avoid a break in insurance. Apart from this, your vehicle is protected against damages incurred due to unforeseen situations like theft, personal accident, third party liability and many more. Investing in an all-inclusive bike insurance plan is definitely worth it.

An online bike insurance premium calculator helps you in making your decision because it will help you evaluate your requirements and provide you with the options most suitable for your specific case. Getting an ideal bike insurance plan is as significant as buying the right two-wheeler for your requirements.

Two Wheeler Insurance Premium Calculation

As we know, we’ve multiple bike insurance plans available in the market, providing a wide range of benefits and features. Calculating the two wheeler insurance premium before buying the policy allows you to scan several plans based on your affordability, and then choose one that fulfils your needs.

Here’s the importance of calculating your insurance premiums with the bike insurance calculator tool.

  • Helps You Pick the Right Plan

A bike insurance premium calculator enables you to make an informed decision to financially safeguard your two wheeler. The online tool helps you compare different insurers and the bike insurance policies they offer. Thus, you can buy the right bike insurance plan without any trouble.

  • Assists with Reducing the Premium

Numerous aspects play a role in the two wheeler insurance premium calculation. By using the tool, you can check which factors cause an increase or decrease in the bike premium price such as add-on covers. So, you can select a suitable insurance policy within your budget with a bike insurance premium calculator.

  • Affordable Option

The online two wheeler premium calculator allows you to purchase an insurance policy that is affordable to you and fulfils your needs. Moreover, it enables you to understand several plans and their features and encourages you to pick the right bike insurance plan at a cost-effective rate.

How to Use a Two Wheeler Insurance Premium Calculator?

When you visit Bajaj Markets, go to the ‘Motor Insurance’ section and select ‘Bike Insurance Calculator’. You will be redirected to a new page where you will be requested to enter a few details:

  • Bike registration number

  • Your contact details

  • Date of birth

  • Whether your bike is registered as a commercial vehicle or not

  • Whether you have a bike insurance policy or not

Once the necessary details are filled in, click on the ‘Get Quote’ button. Proceed to provide details about your vehicle that includes:

  • Make and model of the bike

  • Fuel type

  • Other vehicle-related information

Then, choose the type of bike insurance plan you wish to buy – third party bike insurance or comprehensive bike insurance. Provide a few personal details as requested, and you are done. Based on the information you’ve filled in; the tool will calculate and display the bike insurance premium on the screen.

How Does Two Wheeler Insurance Calculator Work?

Considering you know how to use the bike insurance calculator by now, it is understandable that the tool comes in handy to fetch the bike insurance premium. Whether you’re looking to secure a new motorcycle or a second-hand bike, a bike insurance calculator is your go-to tool for knowing the cost of your desired two wheeler insurance policy.

Here’s how the bike insurance calculator works when buying insurance for an old and a new motorcycle.

  • For Old Bikes

When buying/renewing a bike insurance plan for an old bike, the tool helps in checking if there are any deductions in the premium amount. Since the age of the vehicle impacts the insurance premium amount, it is imperative to evaluate this factor. Ideally, the older your bike is, the lower the bike insurance premium will be.

  • For New Bikes

The process of buying insurance for a new bike includes extensive research and evaluation. With a bike insurance calculator tool, it becomes easier to evaluate different plans offered by insurers. Besides, depending on the quotes generated, you can proceed to buy a policy that offers extensive coverage at an affordable rate.

5 Benefits of Using Two Wheeler Insurance Calculator

We’ve enlisted a few benefits of using the bike insurance premium calculator:

  1. The tool automates the entire process of performing complex mathematical calculations in seconds, allowing you to get a quote on your bike insurance policy immediately.

  2. The algorithm of the tool provides error-free results. So, as long as you are entering accurate information in the tool, it will provide accurate outputs.

  3. The tool is free to use.

  4. It is available online on your insurer’s website. The details required by each bike insurance calculator tool online will vary depending on the provider.

  5. It allows you to understand the factors that potentially affect your bike insurance premiums.

Factors Affecting Two Wheeler Insurance Premium

Here are the aspects that impact your bike insurance premiums:

  • Type of Insurance

The type of insurance cover you pick is a major factor that impacts the final premium amount you pay. A comprehensive two wheeler insurance plan helps you stay covered against third party liability, loss or total damage of your insured vehicle caused by man-made and natural calamities, vandalism and theft, among others. Depending on your requirements, either one of the policies can be chosen.

  • Type of Vehicle

The type of vehicle you own also goes a long way in determining the premium amount. The make and model of the two wheeler, the place of registration, any accessories and modifications made to the vehicle and the mileage, all play a role in determining the premium amount. The vehicle age and other factors directly affect the premium amount. The higher the cubic capacity, the higher the premium amount payable.

  • Add-on Covers for Two Wheelers

The number of add-on covers you choose to add to your existing premium will impact the amount you have to pay. While add-on covers protect you from incidents not covered by your regular policy, they come at a cost. It is important to select add-on covers carefully so as to ensure that you only pay for what you need. This way you can even lower your premium amount.

So, even with additional needs, choose the covers wisely. The zero depreciation cover is the most important one to consider, with relation to all two wheeler insurance add on plans. Comparing the policies available and reading the fine print for hidden charges are the best ways to ensure you get the best deal without breaking the bank when it comes to premium payments.

  • Insured’s Age and Experience

The riding experience, age, and gender of the rider may also impact the premium amount. For instance, a male insured with nearly 5 years of experience in riding can get a lower premium over a male applicant with just a year’s worth of experience. Certain factors related to riders are used to determine the insurance premium quote where risk acts as a basis of the same. A middle-aged rider with tons of riding experience will have a better premium than a young rider with less experience.

  • No Claim Bonus (NCB)

No Claim Bonus in bike insurance is a reward that you can avail on your insurance premium. By not raising any claims during the policy period, you can get a discount on the Own Damage component of comprehensive two wheeler insurance. The percentage of this reward keeps increasing by 5-10% for every claim-free year. Thus, if you haven’t filed any claims during this tenure, you might get a discounted premium rate!

Components That Affect Bike Insurance Premium

The essential components that impact the comprehensive bike insurance premium are as follows:

  • Own damage

  • Insured Declared Value (IDV)

  • Add-on Covers

  • Deductibles

  • No Claim Bonus

  • Third-Party Liabilities

  • Make and model of the vehicle

  • Age of the vehicle

  • Personal accidental cover for owner/pillion rider

Besides, the components that impact the third party bike insurance premium include:

  • Third-party liabilities

  • Personal Accidental cover for owner/pillion rider

  • The cubic capacity of the bike

Tips to Reduce Bike Insurance Premium

Here are a few tips that will help you lower your bike insurance premium amount:

  • No Claim Bonus (NCB)

With the NCB, you can avail discounts on your bike insurance premiums at the time of renewal. As mentioned above, NCB is granted to policyholders that do not raise a single claim during the bike insurance tenure. It is like the insurer’s way of rewarding you for driving responsibly.

  • Anti-Theft Devices

If you install anti-theft devices on your bike, especially if you stay in a theft-prone area, your insurer can regard you as a low-risk applicant. Based on the kind of anti-theft devices installed on your bike, the insurer will determine the premium amount accordingly.

  • Voluntary Deductible

Voluntary deductible is a clause in your bike insurance plan with which you are liable to pay a certain percentage of the claim settlement from your pocket. So, if you opt for a higher voluntary deductible, your bike insurance premium will be lower and vice versa.

By now, you must have a good understanding of how to calculate the bike insurance premiums in India. We’re now discussing the types of bike insurance plans available at Bajaj Markets and the different add-ons you can choose.

  • Online Bike Insurance

To get an affordable two wheeler insurance premium quote, it is recommended to buy the policy online. As there are no intermediaries involved in the process, you get a discounted premium rate. Furthermore, you can also compare various policies online, enabling you to get a lucrative premium quote.

  • Long-Term Bike Insurance

Earlier, bike insurance plan came with a one year policy period and had to be renewed annually. However, you can now opt for long-term two wheeler insurance with a tenure of three years. Thus, you can avail continuous protection against risks and avoid the hassles of policy renewal. Moreover, long-term bike insurance provides a cost-effective premium rate and secures you from the rising cost of insurance plans every year.

  • Bike Insurance Renewal

Ensure to renew your two wheeler insurance plan before expiry. This will eliminate any chances of policy lapse and also safeguard your No Claim Bonus. In case you forget the due date and miss the grace period, you shall end up losing the NCB. Moreover, your bike will require a new insurance plan, mandating a vehicle inspection, which can lead to an increased premium quote.

Further, a few worthy add-ons that you can purchase along with the comprehensive bike insurance plans include:

  1. Zero Depreciation Cover

  2. Engine Protection Cover

  3. NCB Protection Cover

  4. Consumables Cover

  5. Return to Invoice Cover

  6. Roadside Assistance Cover

You can read more about these add-on benefits by visiting Bajaj Markets.

Conclusion

So, now that you know how to calculate your bike insurance premium, get an exact quote of your bike insurance policy online. Based on the various quotes you gather; you will be able to make an informed decision when buying bike insurance in India.

In case you are looking to buy bike insurance online in India, consider the bike insurance plans at Bajaj Markets. You can benefit from features such as cashless claim settlements, hassle-free renewals, 24x7 assistance, extensive coverage, and more.

You can know more about bike insurance in India by visiting Bajaj Markets.

Check Out Bike Insurance Plans Available at Bajaj Markets

FAQs related to Bike Insurance premiums

  • ✔️How are bike insurance premiums calculated for a new motorcycle?

    Several factors are considered when determining bike insurance premiums for new motorcycles. These include:

    • The IDV

    • Age of the bike

    • Registration area of the bike

    • The cubic capacity of the bike

  • ✔️Will raising a claim on my bike insurance plan increase the premium amount at the time of renewal?

    Ideally, you should raise bike insurance claims only during dreadful situations such as accidents or theft. If the damage repair expenses are minor and financially convenient for you to manage, you should not raise a claim on your bike insurance plan. That way, you earn NCB rewards for every claim-free year, which can be used to avail discounts on your bike insurance premium at the time of policy renewal.

  • ✔️Is it easy to use a bike insurance calculator?

    Yes. A bike insurance calculator is a user-friendly tool. All you have to do is enter the requested details and click on ‘Get Quote’. Based on the information you provide; the tool will compute your insurance premium for the desired coverage and add-on benefits.

  • ✔️How will I get my two wheeler insurance policy document on paying the premium online?

    After you have paid the bike insurance premium amount online, you will receive the policy document on your registered email ID soon!

  • ✔️How is the premium amount for third-party bike insurance calculated?

    The IRDAI (Insurance Regulatory and Development Authority) decides the third-party bike insurance premium by considering the engine’s cubic capacity.

  • ✔️What will happen to my No Claim Bonus if I change my insurance provider?

    As the NCB belongs to the policyholder and not the vehicle or the insurance plan, you can easily transfer the reward while switching insurers.