Decipher the Formula to Calculate Your Two Wheeler Insurance Premium

Purchasing insurance policy for bike is a necessity as well as mandatory according to the law. However, to get the best policy that suits your requirements and fits in your budget, it is necessary that you first compare the policies online to check which insurance company is providing you with better deals. To make the comparison experience easier, you can use the bike insurance calculator that will help you to calculate the insurance premium amount. To get the correct figures for bike insurance, you will need the following data-

  • City of Registration
  • Two-wheeler registration number
  • Whether your previous policy is active or inactive
  • No Claim Bonus (if applicable)
  • Year of manufacture
  • Make and Model of the bike
  • Contact number

Even if you don’t have the registration number of the two-wheeler, you can use the two-wheeler insurance calculator and input the rest of the data.

Process of using the two-wheeler insurance calculator

Coming to the main part that is calculating the premium of your bike insurance, to get the process started, you need to visit your insurance company’s website and select ‘Two-Wheeler Insurance’.

Then you will see the option to renew your policy. Provide all the necessary details as requested. Certain companies might also provide you with the option of selecting ‘Personal Accident Cover’ for owner-driver.

Remember that the premium of your bike will depend on the type of insurance policy you opt for. The IRDAI defines the rates for a third-party liability policy and revises them every year. The rates are decided based on the bike’s cubic capacity. But, if you go for a comprehensive two-wheeler insurance policy, then factors such as own damage premium, vehicle’s age, the Insured Declared Value, date of registration, city of registration, etc. will contribute in the premium amount. The prices for these depend on individual general insurance companies. Once you fill in all the data, the calculator will display the insurance premium that is applicable for your two-wheeler.

What is the formula for calculating two-wheeler insurance?

You can calculate the final premium using the formula given below:

(Own Damage Premium – No claim bonus) + Liability Premium Amount

Process of calculating renewal premium

If you wish to renew your existing policy before its expiration, you can do the same on the web portal of your insurer under the relevant section. All you need to do is, fill in your current policy number, then you can either add or remove any extra features offered to you by the insurance provider. The calculation of premium will then be taken place automatically. You must renew the policy before its expiry, or there will be inspection charges later.

Process of calculating the third-party insurance premium

A third-party two-wheeler insurance policy offers protection for owner-drivers against any damages caused to a third-party when the accident is caused due to your vehicle’s fault.

The two wheeler insurance premium calculator proves to be extremely useful as it provides you with the quote you must pay in the form of the premium amount. If you know the price to be paid for your insurance policy already, you can prepare your financial budget keeping in mind the insurance rates. Therefore, make complete use of this, as it is available for free on websites of insurance companies.