How To Calculate Insurance Premium For Your Old Bike?

Although you can now conveniently use a two-wheeler insurance calculator to figure out your exact premium for your old bike before buying insurance, we don't know the calculation process and various factors that are taken into consideration while calculating the premium. We have listed a few factors that are looked into by the insurance company while quoting a premium.

How To Calculate Insurance Premium For Your Old Bike?

The following are the various factors taken into consideration while calculating the Insurance premium for your old bike:

• Bike Model and Make: Expensive bikes carry a higher financial risk for the insurer. The premium for high-end bikes, therefore, is higher. So if you have expensive two-wheel drives that cost over three lake Rupees, the premium is higher than a standard bike costing less than one lakh.

• Bike Year of Manufacture: The value of the bike is decreased with time. IDV of old bikes, therefore, have a lower IDV. The lower your IDV is, the lower the premium and the other way around. Thus, if you buy a recent two-wheeler, the premium will be higher than a two-year model launched.
• Engine Capacity of Bike: A robust two-wheeler insurance premium calculator, including third-party insurance, considers the engine capacity of your bike when calculating the premium. A higher premium is associated with a larger engine size.
• Owner Information: When calculating premiums, factors such as your age, gender, and riding experience may all play a role. As compared to someone who has just started riding, an experienced rider's insurance premium will be lower.
• Voluntary Deductible: When buying or renewing your bike policy, you can raise your deductible voluntarily. A higher deductible will lower your insurance premium, but you will be responsible for more repair costs if your bike is damaged.

• No Claim Bonus (NCB): If you're renewing your policy and haven't made a claim in the previous year, you're eligible for a No Claim Bonus (NCB). It starts at 20% after the first claim-free year and rises to 50% after the fifth claim-free year. The NCB will also be factored into the insurance premium calculation.

• Add-ons: The add-ons you want may have a big effect on the cost of your bike insurance. Health coverage, passenger coverage, accessories coverage, and other add-ons can be useful.

• Safety Equipment Added: Insurance firms consider the safety features that the owner has installed to keep their bike secure. Installing approved safety equipment from the Automotive Research Association of India (ARAI) will help you save money on your insurance.

Conclusion

It's easy to use an insurance premium calculator. You must enter information such as the make and model of the bike, the IDV, the voluntary deductible, the NCB, and so on to get an exact premium.But be aware of all the factors that go into calculating your premium in order to save your premium money.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.