Buying a bike insurance policy has become an easy affair with the online medium simplifying the process greatly. You can go online, fill in your requirements, and enter your bike details and, voila, you can see the available two-wheeler insurance policies along with their coverage features and premium rates. You can easily select a plan of your choice, pay the premiums online and your bike insurance policy is issued. The online medium also provides a bike insurance premium calculator using which you can calculate the premiums for your bike insurance policy. Have you ever wondered how the calculator works?
The bike insurance premium calculator uses some basic details to work out the premium. You input the details and the calculator outputs the premium rate. Here are the details which are required to use a bike insurance premium calculator:
- Your two-wheeler details
The first information which is required is the details of your bike. You have to provide your bike number which is used to determine whether you have a bike which has a valid registration. If you are not sure about your bike’s number, you have to input the make, model and variant of your bike, the year of its registration and the city of the RTO from which you got your bike registration done. These details are required to assess the location and the make and model of your bike which helps in determining the premium.
- Expiration details of an existing policy
If you are renewing your bike insurance policy you would be asked whether your existing policy has expired or not. This question is important as the premium rates vary for an unexpired policy and an expired policy. Premiums are higher for expired policies compared to unexpired ones. If the policy has expired you are also asked the period from which the policy has expired to understand the total days of lapse.
- Any applicable NCB discount
If you do not make a claim in your two-wheeler insurance policy you earn a No Claim Bonus discount. This discount reduces your renewal premium and increases every successive claim-free year. If you are renewing your bike insurance policy, you would have a NCB discount if you did not make any claim in the current year. The calculator uses this discount to calculate your reduced premium.
After you provide these details, you would be shown the different plans and their quotes. If you want, you can alter the premium quotes as per your requirement. To alter the quotes generated you can –
- Choose the type of plan required
You have an option of choosing the type of plan you want to buy. There are three choices. One, you can buy a comprehensive plan which covers damages faced by your bike and third party legal liability. Two, you can buy only the mandatory third party legal liability policy. Three, you can choose a zero depreciation policy which would give you a higher coverage. Choosing any of these coverages would alter your premiums.
- Choose the coverage tenure
Nowadays, two-wheeler insurance policies are offered for longer tenures too. You can get a 2 or 3 year policy instead of an annual policy. If you choose a longer tenure your premiums would be different. The calculator would give you a choice of the tenure and the premium would be determined based on the tenure you choose.
- Opt for add-ons
Two-wheeler insurance plans have add-on coverage features which increase the scope of coverage. Add-ons require additional premiums. If you choose any add-on, your premium would increase proportionately.
This is how a bike insurance premium calculator works. You can calculate your two-wheeler premiums and also adjust it by choosing your coverage. Before buying the policy, however, you should –
- Compare the available plans against their coverage features
- Ensure to choose a plan with the highest IDV for maximum coverage
- Opt for important add-ons and
- Try to choose a long term plan as you can avail premium discounts
Online portals like Coverfox.com also provides a bike insurance calculator which you can use to calculate your bike insurance premium. This calculator also allows you to customize your plan. You can login to www.coverfox.com to buy the plans of your choice. So, what are you waiting for? Remember the above-mentioned points, understand how the calculator works and buy your bike insurance policy. You wouldn’t be disappointed.