Stay a step ahead during these renewals by knowing what makes up your two-wheeler premium amount. Compare quotes and buy the best.
If you have been paying your two-wheeler premium for years, but always wanted to understand the factors involved better, then here’s the complete guide to understanding what you are paying for. No, there is no exquisite science behind your premium. In fact, it is advisable to know these factors before getting into an official sign-off for your policy.
Listed below are 4 factors taken into consideration while calculating two-wheeler premium:
1. Type of coverage
As per law, two-wheeler insurance is mandatory for every two-wheeler owner. You can choose between the liability-only plan, which includes third-party coverage for any injury or damage caused, or the comprehensive plan, which includes not just the liability plan coverage, but also a personal accident cover and coverage for the two-wheeler. The type of coverage forms the basis of the two-wheeler insurance.
If the coverage is only third-party, then engine capacity of the vehicle. However, if you buy a comprehensive cover, there are other factors which get involved. Following is the list of those factors:
2. Details of the vehicle and it’s present date condition
Your vehicle’s condition is one of the most important factors being considered during calculation. Factors like manufacturing year, place of registration, fuel type of your bike, age, model, current valuation, any accessories or medications attached, the number of miles clocked, the cubic capacity, etc. are all key factors directly influencing the premium amount.
3. The deductible
The deductible is a necessarily specified amount that must be a part of the premium calculation. It is the amount that will be deducted at the time of claim. For two-wheeler vehicles, a deductible is a minimum of Rs. 25. However, various insurance providers try to bargain on a higher deductible, therefore, increasing your premium amount without increasing your claim value.
4. Add-ons on the cover
Depending on the number of add-ons you opt for, your premium will vary accordingly. It must be noted that the benefits of an add-on are worth the minimal amount you might have to cough up to get specific coverages. Therefore, compute your premium based on the number of add-ons you opt for.
The premium calculation is not a derivative or integration kind of mathematics problem. It’s rather simple and easy to deduce. Various online calculators are available to help you calculate your premium amount. Once you are well-aware of the premium amount, you can make an informed discussion with your insurer to provide you with the best offers.