Tech

Checking Premium Amount for Two-Wheeler Insurance Policy Online

One of the factors that help you choose a two-wheeler insurance policy is the premium rates. Based on various factors such as the age of your vehicle, Insured Declared Value (IDV) of your vehicle, etc. the premium rates are decided. One of the ways through which you can know the premium that you will have to pay on purchasing a plan is by using the premium calculator.

What is an online premium calculator?

An online premium calculator is a tool which helps you compute the premiums that you will have to pay when you purchase a particular two-wheeler insurance policy. You can visit the official website of any general insurance company and enter the details required to know the premium rates. There are third-party websites which also help you in determining the premium rates.

Benefits of using a premium calculator

There are various benefits of using premium calculators. Some of them are:

Using premium calculators is hassle-free in nature and hence saves time. All you are required to do so is to fill in the details needed, and your premium rates will be computed within no time.

Since the premium amount is calculated online, you are saved from paying anything extra as a commission or any other charges while paying your premiums.

The premium amount calculated is accurate in nature. This ensures that there are no human errors involved and you are paying your premiums depending on the information provided by you.

Using a premium calculator is free of cost.

There is no paperwork involved since you are using the premium calculator online.

A premium calculator also helps you in knowing the factors due to which your premium rates are affected.

Premium calculators are excellent tools if you are comparing policies. You can use the premium calculator to determine the premium rates for each policy you are interested in and decide which plan will be cheap and suitable for you. 

Components that help in determining premiums

There are certain components that help in determining premium rates. They are:

Insured Declared Value (IDV): The Insured Declared Value of your vehicle plays a role in determining the premiums you will have to pay. It is important to understand that higher the IDV, higher the premium rates, and lower the IDV, lower the premium rates.

Type of policy: The type of policy that you are looking to purchase will also determine the premium rates. The premium rates for a third-party two-wheeler insurance policy are cheap since it provides very basic coverage to you. In the case of comprehensive two-wheeler insurance, the premiums are slightly high since this type of policy offers a wide range of options to you in terms of coverage.

Add-on covers: If you have purchased add-on covers in order to enhance the coverage, then you can expect an increase in your premium rates.

Voluntary deductibles: Voluntary deductibles is the percentage of money that you will pay during the time of claim while the rest of the amount will be covered under your policy. Higher the voluntary deductibles, lower the premiums and vice versa. Hence, the voluntary deductible will determine the premium amount.

No-claim Bonus: No-Claim Bonus (NCB) are discounts on your premiums that you will enjoy if you have not made any claims in the previous policy year. The premium rates during the time of renewal can decrease if you have not made any claims in the previous policy year since you will enjoy discounts on your future premiums.

Vehicle model: The model of your vehicle will determine the premium amount. For example, premium rates will be expensive if you own a Harley Davidson bike as compared to a scooter for which the premium rates will be low.

Location: The geographical location where you will be riding your vehicle will play a role in determining the premium amount. For example, premium rates will be higher if you are going to ride your vehicle in a metro city since the chances of accidents are high.

Hence, these are some of the ways through which you can check your premium amount for a two-wheeler insurance policy. A premium calculator is a brilliant tool which can help you check the premium amount. You must also be aware of things like the age of your vehicle, type of policy you are looking to avail, etc. which can help you determine the premium amount that you will have to pay.

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Financial Analyst at Farmer's Insurance with over 25 years of experience working in the Financial Industry

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