While the Motor Vehicles Act of 1988 has made it mandatory for all two-wheelers to have a third party bike insurance policy, many bike owners have started realising the importance of the right insurance for the bike and are opting for comprehensive plans for their two-wheelers. As a result, there are many providers offering online 3rd party bike insurance and comprehensive bike insurance plans.
Choosing the right one requires an understanding of your insurance needs and considering various factors that contribute to the premium of the policy. This is where a bike insurance calculator comes in handy. Many platforms, including insurer websites, offer a bike insurance calculator online that can help bike owners ascertain the premium of the policy they intend to buy.
In this article, we will look at the benefits offered by such calculators in helping you make informed decisions.
Benefits of Bike Insurance Premium Calculator
When you decide to purchase a two-wheeler, you look at various models and manufacturers to find the bike that best suits your needs. Similarly, when you start looking for a bike insurance policy, you must look at different insurance providers and plans to determine the best policy for your use of the bike. A 2 wheeler insurance calculator helps you find the premium that you would be required to pay for a policy that has all the features you want. In addition, it offers the following benefits.
- Finding the right insurance plan
You have to pay a premium for a bike insurance policy. The premium amount will depend on the type of policy, the coverage offered, and a host of other factors. Unfortunately, most bike owners are overwhelmed by the number of options available in bike insurance. A 2-wheeler insurance calculator can help you get a clear idea of the financials of the policy and help you choose the most cost-effective plan.
- Managing the insurance premium
When you opt for a comprehensive bike insurance policy, the insurer offers a range of add-ons to help you customise the plan as per your needs. These add-ons increase the premium of the policy. While you might need certain add-ons, if the premium charged on them is too high, then you might want to exclude them from the policy. A bike insurance premium calculator helps you understand the impact of every factor on the premium of the plan. You can add/remove entities to make it affordable without compromising on the coverage.
- Selecting the right add-ons
Every bike owner has unique insurance requirements. This is because they are exposed to different risks considering the type of bike, their riding efficiency, and surrounding conditions. Hence, they need a bike insurance policy that is customised to their needs. Insurance providers offer a range of add-ons to help them customise the policies. However, these add-ons come for a price. With a bike insurance calculator, you can assess the impact of an add-on cover on the premium amount and choose the ones that fit your budget.
- Determining the IDV
The Insured Declared Value (IDV) is the current market value of your bike minus the depreciation. The insurer uses this amount to determine the sum insured of the policy. The sum insured is the maximum claim you can get on the insurance policy. Many insurers allow bike owners to reduce the IDV to get a lower premium on the policy. A bike insurance premium calculator can help you determine the right balance between IDV and premium for your needs. However, it is important to remember that while reducing the IDV lowers the premium, it also offers a lower claim amount. Hence, choose carefully.
A bike insurance calculator is a tool that can help you buy a two-wheeler insurance plan that fits your budget. It allows you to be in control of the features that you are paying for. When you use the calculator, you are usually required to enter the make and model of your bike, city and date of registration, type of policy, No Claim Bonus details, add-on covers, and various other aspects that can help calculate the two-wheeler insurance premium amount. Then, you can tweak the features to tailor the policy to your needs and budget. Make sure that you compare insurers and plans and use the calculator to purchase a policy that is best suited to you. Good Luck!