If you ride a bike to office, you need to make sure it is insured. When you buy bike insurance online, you are given a quote of the policy. So how does your insurance provider calculate the premium for your particular vehicle? Why are the quotes different for different bikes and what factors are responsible for this? Take a look at this article to get all the answers.
How is bike insurance premium calculated?
When you use an online bike insurance calculator, you will be asked to enter the following as they are the factors considered for deciding the premium of a particular plan:
- Make and model: The bike insurance premium is greatly affected by the make and model of the vehicle. When you use a bike insurance calculator, you will be asked the details of your bike. If you say you have a standard two-wheeler, your premium will be lower than the premium of a sports bike.
- Age of the bike: The age of the bike is also a factor. A new bike is of more value. However, as it ages, it depreciates in price. The IDV comes into play. So a new bike is relatively more costly to insure and carries a higher premium.
- NCB: When you look to get bike insurance online, you are asked whether or not you have any accumulated NCB. The no claim bonus (NCB) is a discount you get on your bike insurance premium if you don’t make any claims. The NCB gets deducted from your premium and so the final cost is depended on this very important motor insurance component.
- Engine: The engine of a two-wheeler is measured by its cubic capacity (cc). The larger the engine, the more is the premium. When buying bike insurance online, you have to look for a plan that’s available for the suitable cc of your bike. If you have a bike that has an engine lower than 75 cc, you will have a lower insurance premium. If the cc is higher than 75, the premium will also be higher.
- Deductible component: This is an easy calculation to understand – when your deductible is high, your bike insurance premium is low and when your deductible is low, your premium is high. Adjust your deductible in a reasonable manner to get the best insurance premium rate for your bike. Remember, if you set a higher deductible you will receive a lower claim amount from your insurer.
- Anti-theft device: If you park your bike in your office’s parking space, your bike is relatively save. You can get a discount on your bike insurance premium if you have a few anti-theft devices installed in your bike. These gadgets reduce the risk associated with insurance and so the insurer offers a good discount. When you compare two wheeler insurance online, do mention that you have one or more of these devices in your bike. You will then be able to find the best plan at the best possible rate.
- Automobile association membership: If you are a member of a registered automobile association in India, you will get a good discount on your bike insurance quote. This is a very good reason for you to get such a membership. Apart from this, the membership can also earn you a lot of good reputation and put you in touch with some awesome and like-minded riders.
These are the factors that are taken into consideration by a bike insurance premium calculator. Remember them and enter them carefully when you use an online calculator.
The final word
Now that you know how your bike insurance online quotes are made, you will understand the pricing system better. Make sure you compare two wheeler insurance online before you buy a plan. This will help you to find the best plan at the best rate and will also help you to get the best coverage for your precious two-wheeler. Choose the deductible component carefully. Also, look to install a safety gadgets and try to enroll in a registered automobile association. Doing these will help you find excellent insurance coverage for your bike.