Two-Wheeler Insurance Calculator

1. Make and model of the bike - High-end bikes are costlier to insure as they attract greater insurance premiums. It is more economical to get a budget bike insured.
2. Year of manufacture - The rate of depreciation of a bike increases with the age of the vehicle. Hence, when the bike is old, it has a lower Insured Declared Value. The IDV determines the premium amount corresponding to the Own Damage cover of the insurance policy. The IDV is directly proportional to this premium; hence, the IDV of a new vehicle is greater than an old one. This implies that a new bike is more costly to insure when compared to a used vehicle.
3. Capacity of the engine - It should be noted that the premium for the third-party liability section of the insurance is largely influenced by the cubic capacity of the vehicle, as opposed to the IDV.
4. Owner's age - Insurance companies consider the age of the driver as a significant parameter in determining the cost of insurance. It is widely believed that younger drivers who are in the age group of 18-25 are more prone to accidents; therefore, they attract higher premiums while getting their two-wheelers insured.
5. Locality - The area where the bike is used will have a bearing on the cost of its insurance. For instance, if the vehicle is predominantly used in a built-up area where it is exposed to high traffic density, the risk of it being involved in an accident is greater. In such a case the owner will be required to pay more for the insurance policy. Moreover, if the bike is parked in an area where the recorded levels of theft are high, the insurance for the vehicle is likely to cost more.
6. Discount based on profession - The profession of the driver influences the cost of insurance premium. Insurance companies usually provide premium discounts for owners of vehicles who are employed in government facilities, doctors, and defense personnel.
7. Discount based on security features - If a bike is equipped with a security device that is approved by the Automobile Research Association of India (ARAI), the owner will receive a significant reduction in insurance premium.
8. Voluntary deductible - Opting for a voluntary deductible at the time of policy purchase is a good way to bring down the insurance premium to a great extent. However, at the time of a claim, a voluntary deductible entitles the policyholder to pay a part of the claim amount before the insurer pays the rest. So, it is important to find a balance between the cost of premium and voluntary deductibles when you buy a policy.
9. No Claim Bonus (NCB) - NCB is the benefit that a policyholder accrues over the years for not making any claims during a policy term. So for an annual policy, if he does not make any claim in a year, he is liable to benefit from a significant discount in premium when he renews the policy the following year.

Online Calculation of Premium

The advantages of comparing policies and calculating your insurance premium online are as follows:

1. Ease of policy purchase - Buying a policy online happens instantly through a few clicks. Hence, it is easy and reliable.
2. Wide range of options - When you compare policies online, you have a host of different plans at your fingertips. You get an idea of the various insurance providers in the market and the plans that they offer. You can look through the available options and sieve out the ones that seem interesting to you.
3. No Paperwork - The hassle of paperwork is completely avoided when you make an online purchase of an insurance policy.
4. Better preparation - Understanding the various plans available to you can equip you better for the purchase of the policy. Before buying the insurance you can get all the prerequisites ready and the relevant documentation up to date.

Two wheeler insurance premiums can be conveniently calculated at the websites of insurance providers or at neutral third-party financial websites. It is advisable to utilise this facility to get a better understanding of the choices you have at hand. This helps in making a well thought-out decision regarding policy purchase.