Thursday, November 16, 2017

Factors Affecting Your Two-Wheeler Insurance Premium

When you buy insurance for your two-wheeler, you pay a premium to the insurance company and the insurance company provides you coverage for damage or loss. If you are on a lookout for a bike insurance plan, up can use a bike insurance calculator to get approximate cost of the premium.
All you have to do is filling out the basic details such as registration number of your bike, bike make, bike model etc. Once you are done filling the details, the bike insurance calculator will compute premium and display various insurance plans from different insurance providers. You can compare the plans and premiums and filter out the plan you like the most.

A bike insurance calculator calculates insurance premium based on the following factors.

Bike Model and Make
If your bike is high-end, the insurance premium will be higher for the obvious reasons. If your bike is relatively new, you will be charged a high premium based on IDV of your bike. 


Manufacture Year

As the rate of depreciation rises with the age of a bike, the older two-wheelers have lower Insured Declared Value, so they come with a lower premium.

Insured Declared Value (IDV) computation basis on the Ex-showroom price and two-wheelers age.

Age of a Two-Wheeler
Insured Declared Value
Between 0 - 6 months
95 percent of the ex-showroom price
Between 6 months - 1 year
85 percent of the ex-showroom price
Between 1 year - 2 years
80 percent of the ex-showroom price
Between 2 years - 3 years
70 percent of the ex-showroom price
Between 3 years - 4 years
60 percent of the ex-showroom price
Between 4 years - 5 years
50 percent of the ex-showroom price

Engine CC
The cubic capacity of your two-wheeler engine affects your insurance premium. If it’s higher, the insurance premium for your bike will also be on a higher side. 

Here is the revised premium for 2017-18.

Two Wheeler
Premium
75cc
569 Rupees
75cc - 150cc
720 Rupees
150cc - 350cc
887 Rupees
350cc or more
1,019 Rupees

Owner’s Age
The insurance provider doesn't know if you’re a reckless driver or a responsible driver. That’s why it becomes a critical component in determining the insurance premium of your vehicle. If your age is between 18 to 25 years, your premium will be higher.


Geographical Location
Staying in an urban location means higher traffic on the roads. It exposes your vehicle to a higher risk of an accident. It means your insurance premium will be higher for your vehicle.

No Claim Bonus
It is a discount offered to the policyholder for every claim free year. The insurance company rewards you for being a responsible driver.

Anti-Theft Discounts
In case you have installed an anti-theft device approved by ARAI in your vehicle, you will get 2.5% discount on your premium for installing an extra layer of security on your bike.

Voluntary Deductible
It is a way of lowering insurance premium. People opt for low premium by voluntarily declaring an amount you’d bear in event of case of a claim.

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