Insurance

5 pointers to optimize your two-wheeler insurance premium

Buying a two-wheeler insurance premium offers several benefits. It is compulsory to buy two-wheeler insurance in a country like India according to the Motor Vehicles Act, 1988, however, some people choose to avoid it. It is mandatory because it gives you financial protection and keeps you as well as your vehicle covered against contingencies like accidents, natural calamities, man-made disasters, and so on. People avoid buying it because it requires additional charges. To avail insurance coverage the policyholder has to pay an insurance premium. It might not be inexpensive but the benefits are worth it.

  • Need for two-wheeler insurance

Motor Insurance is mandated by law, but it is also very important for us to understand that two-wheeler is equally important for many reasons. The primary reason to have motor insurance is to protect oneself from the third-party liability cost.

When buying two wheeler insurance, the amount you are paying as the insurance premium is much less than the total sum insured.

​​​However, we are aware about the fact that driving a two-wheeler is riskier than driving a car. An individual riding a bike is more exposed to danger than someone seated in a car. Two-wheeler insurance also offers you risk coverage towards self-physical injury, damage/loss of the vehicle as well as the third-party liability.

  • How is premium calculated?

Calculation of your old or new plan can be done with the assistance of a two-wheeler insurance calculator. It differs for different kinds of insurance. The rates have already been set up by IRDA for third-party insurance and they have revised annually for every two-wheeler.

Following factors are considered for a comprehensive policy:

  • Own damage premium
  • Place of registration
  • Age of vehicle
  • Insured Declared Value (IDV)
  • Factors which impact two-wheeler premium insurance:
  • Coverage
  • Condition of the vehicle
  • Add-on covers
  • Voluntary Excess

Based on the input information the premium is calculated.

  • How to optimize it

The following are 5 pointers that will help you in getting the best two-wheeler insurance at an affordable rate. It will help you save your money along with providing you maximum benefits:

  1. Analyze Your Needs and Requirements:

Make a list of your requirements to ensure that the policy matches your needs. However, the premium will depend on which type of bike or two-wheeler you own.

  1. Select the Right Two-Wheeler Insurance Plan:

An insurance company generally offers two main types of coverage: Third-party coverage and Comprehensive coverage. However, a third-party liability cover is less expensive when compared to a comprehensive one.  A third-party liability provides limited protection than a comprehensive insurance plan. Therefore, it is advised to get a comprehensive two-wheeler insurance policy to avail maximum protection cover.

  1. Choose the Correct Add-on Riders:

Two-wheeler insurance companies generally offer add-ons, that is not a part of the basic insurance coverage offered by the company. Opting for more number of add-ons will make your premium even more costly.

  1. Renew your two-wheeler Insurance Policy before the due date:

Purchase as well as two wheeler insurance renewal are equally important. If you forget to renew your policy on a timely basis, and an unfortunate incident takes place, the insurance company will not be responsible for providing any financial assistance.

  1. Consider the No Claim Bonus:

No Claim Bonus is a bonus that insurance company rewards to its policyholders who don’t make claims for the longest duration for petty reasons like dents or scratches . A policyholder gets Non-Claim Bonus up to 50%.

  • Two-wheeler insurance premium calculator

Two-wheeler insurance premium calculators are available on several online websites. It helps an individual to understand the insurance premium for buying any specific two-wheeler insurance policy. One can get insured premium estimates with the help of the two wheeler insurance premium calculator.

The following are the details the insurance buyers will need to submit in the online insurance premium calculator.

  • The model of the two-wheeler.
  • Manufacturing year of the two-wheeler.
  • Registration number of the two-wheeler.
  • The existing insurance plan details.
  • The preferred type of policy (comprehensive or third party)

All the details will be analyzed by the two-wheeler insurance calculator and it will provide you with the best quotations with an adequate premium that needs to be paid. If extra add-ons are included in the premium then the premium rate will increase. The two-wheeler insurance premium can be calculated on the official online site of the insurance company or the third-party website.

  • Conclusion

The first thing to keep in mind while you look for two-wheeler insurance is deciding the coverage and benefits you require in your insurance policy. Once you have a clear idea of the insurance needs, get premium quotes.

Later, when the quotes are generated by different insurance plans, they allow the insurance buyer to make an informed and wise decision. Before you zero down on a plan, make sure to read a fine print of the policy document. To have an even better understanding of the company and claim settlement procedures, you can read reviews online.

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