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Factors That Define your Two Wheeler Insurance Premium Calculation

Karen Menezes Karen Menezes 09 September 2016

What forms your two wheeler insurance premium? How can you calculate your two wheeler insurance premium to get the best deal? Click to find out.

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No subject strikes fear in the heart of the young quite as much as Mathematics. Even as a youth, simple calculations make most of our beads of sweat as big as bricks. It is small wonder then that calculating the insurance premium of your two wheeler is not as easy as you like it to be.

Don’t fear when Coverfox is here; because we have brought exclusively for you a two wheeler insurance calculator.

We know that you know that you have to buy insurance for your two wheeler — just as you have for your car, and it is not only because it is necessarily mandated by the law. But like all of us, we also know that calculating your insurance premium is not easy for you; in fact, if anything, it baffles you.

What comprises the two wheeler insurance calculator?

The basis of a calculation of this nature is a matter of knowing what factors are the key influencers when it comes to the actual part of calculating. Even when it comes to calculating your two wheeler’s insurance premium it is the same formula to follow.

What can puzzle you, however, is that there are countless car insurance plans in the market at various premium costs and providing different benefits. And that you have to somehow figure out the one that is the most suitable for you among this crowd.

While simply going with your requirements can help you figure out what plan to go with, you will always find yourself second guessing if the final choice was ultimately the best choice for your bike and you.

Cheat Sheet for two wheeler insurance calculator

Instead of getting caught in this impossible cycle, take a look at the cheat sheet that we are providing below – just for you. This is the list of the factors that should feature high on your two wheeler insurance premium calculator. If the insurance plan you are considering covers all of these factors, you are definitely on the right path.

1. Condition and relevant information of the Two Wheeler:

Some of the principal factors to feature first on the two wheeler insurance calculator are the condition, make and other such relevant details of the bike.

Take a look at all the features of a bike that can influence your two wheeler insurance premium-

  • Manufacturing year of the two wheeler

  • Fuel type of the bike

  • Place of registration of the two wheeler

  • Model and class of the bike

  • Make of the two wheeler

  • Accessories and modifications carried out on the two wheeler

  • Current showroom price of the bike and

  • Number of miles plied on the bike

Take any two wheeler insurance premium calculator and you will realize how much the premium is influenced by the above mentioned factors such as the age of the bike, the Cubic Capacity or CC of the bike’s engine, etc.

Keeping all these factors in mind, remember that all other factors remaining equal, the insurance premium of a sports bike, or any other high-end motorcycle with a higher CC, will be considerably higher than that of the regular two wheelers that you see on the road.

2. What Type of Two Wheeler Insurance Coverage you seek

The kind of coverage you think you need for your vehicle will be the key to calculating the insurance premium quote that you will be required to pay. This is especially when you are selecting a bike insurance policy plan.

So it is important for you to determine what type of coverage you are looking for, or is required, in your case. The law of the land mandates that every two wheeler is to necessarily have a third party cover as a minimum coverage.

However, it is strongly advised to go beyond than this bare bones coverage as it barely offers any protection to the actual customer in the long run.

Thus, it makes very good sense to opt for a comprehensive two wheeler insurance cover that will shield you in the face of calamities both natural and man-made, thefts and accidents. It goes without saying that the comprehensive coverage for your bike will cost you more than a simple third party cover but it is well worth every penny in premium.

The level of coverage level of the vehicle insurance is a major factor in determining the premium you may have to pay out annually. The thumb rule is that the higher coverage you opt for more will be the premium. And vice versa.

3. Rider’s (Or Driver’s) Age, Experience and Other Related Factors

As in the case of car insurance, insurance service providers pay keen attention to driver related factors such as the riding experience of the driver and the riding history, the gender of the rider, and age.

These rider-related factors are used to determine the insurance premium quote based on risk. So, if you are young male falling in the 20 to 25 age group bracket and boast driving experience of more 5 years, you will be charged a lesser premium than someone in the same case category but with only 1 year of riding experienced.

But then you will definitely cough up a fatter premium than a middle-aged rider with tons of riding experience.

4. Volunteering A Higher Deductible Will Reduce The Insurance Premium

The deductible is the amount the insured has to pay in case of filing any claim. Given that, one easy way of bringing down the quote of your bike premium is to volunteer for a higher excess. If you deem it necessary, go for it.

5. Opting For Add On Covers For The Bike

Add on covers are not meant for only four wheelers. If you have a high-end two wheeler, or have spent a lot in terms of accessories and you now need to protect it, add on covers a life saver.

If you are opting for add-on covers such as zero depreciation cover, there will be a sizeable increase in the premium costs.

So even with additional requirements, do be wise in choosing only the necessary covers. By far, most studies point at the zero depreciation cover being the most important one to consider, with relation to all vehicle insurance add on plans.

Get the best out of the deal

To get the best out your two wheeler insurance, make sure you compare all available policies in the market to clinch the best policy. Also, enquire about the conditions that affect the premium price with your insurer before selecting a two wheeler insurance policy.

Finding a two wheeler insurance calculator is not very tough, but finding a good one is. Now that you know about these basic factors that go into determining the two wheeler insurance premium quote, you can calculate the annual cost on your own.

Karen Menezes
Written by Karen Menezes
An optimist at heart, Karen loves to see the world through a pair of rose-tinted glasses. An award-winning blogger, she loves to dream with her eyes open. Writing is not her passion, it’s an OCD! If at all she isn’t writing, you can find her shopping online or experimenting with DIY recipes.