How to optimize your premium by using two- wheeler insurance calculator?
Do you know how the premium of your bike insurance policy is calculated? Many people don’t and wonder what would be the premium of their bike insurance policy and did they pay more? The premium of your policy can be calculated using a bike insurance calculator which is available online. It comes in handy when you buy two wheeler insurance policy online.
What is bike insurance calculator?
A bike insurance calculator is an online tool which calculates the premium of bike insurance policies.
How does the calculator work?
The working of the calculator is quite simple. You just have to enter basic details and the calculator calculates the premium for the details entered.
Benefits of the calculator
The calculator is quite beneficial as you can calculate the premium beforehand to find out how much your insurance policy would cost you. Moreover, the calculator is also flexible in nature. You can optimize the premium for your two wheeler insurance policy if you use the calculator wisely. Want to know how?
Here are 10 simple ways which help you optimize your premium when you buy two-wheeler insurance :
1.Know the type of policy that you want
There are two types of two wheeler insurance plans. One is the basic, low-priced third party policy and the other is the high-priced, comprehensive policy offering extensive coverage. So, when using the calculator, select the right type of policy for calculating the right amount of premium.
2.Know your bike’s make, model and variant
The exact make, model, and variant of the bike determine the value of the bike. This value is used to calculate the premium. So, in the calculator, specify the correct details of your bike.
3. Fill in the location of your bike
The city in which your bike has been registered also affects the premium calculation. So, enter the correct registration number of your bike so that the calculator calculates the correct premium. Some insurers might ask for your current location as well.
4. Pick add-ons if required
Comprehensive bike insurance policies allow you a range of add-on covers to choose from. These covers enhance the scope of the policy. However, each add-on comes with an additional premium. So, when calculating premium, choose the necessary add-ons in the policy.
5. Choose the applicable NCB
NCB stands for No Claim Bonus, which is a discount allowed to you if you have not made a claim against your two wheeler insurance policy in the previous years. NCB discount is applicable when you renew bike insurance policies. At that time, the calculator allows you to choose the applicable rate of NCB. The rate you choose would give you a corresponding discount and reduce the premium rate.
6. Choose a voluntary deductible
There is also an option of choosing voluntary deductible in the premium calculator when you buy two wheeler insurance plans. This deductible represents the portion of the claim which you are willing to pay from your own pockets. Choosing the deductible also allows you a premium discount and your premiums are lower. However, this also means that you might receive a comparatively lower claim amount.
7. Look for available discounts
Besides NCB and voluntary deductible discounts, bike insurance plans allow other types of discounts too. You can find the available discounts on the premium calculator. There might be discounts for installing Automotive Research Association of India certified safety gears in your bike, discount for becoming a member of a known automobile association, etc.
8. Choose an optimal IDV
IDV stands for Insured Declared Value. This is the value of the bike considering its age. IDV directly impacts the premium calculation. The premium calculator shows the minimum and maximum IDVs available for your bike. You can choose any IDV within the minimum and maximum limits and optimize the premium rate.
9. Compare the available policies
You can compare the premium rates offered by different plans of different companies. You can then choose a plan which offers the lowest premium without compromising on the coverage. So, premium optimization can also be done by comparing policies with the help of a bike insurance premium calculator.
10.Renew on time
If you have an existing policy and are using the calculator to renew the policy, make sure that you renew the policy within the due date. If the due date passes and the policy are not renewed, you would be charged a higher rate of premium.
A bike insurance calculator not only helps in calculating the premium of your policy, but it also helps in optimizing it. So, use the calculator and follow the above-mentioned tips to optimize the premium of your bike insurance plan.