Two wheeler insurance premiums is decided by few factors such as the Cubic capacity of the bike, Make and model of the two wheeler, Date of registration of the bike etc. Let us understand each and every factor which influences the premium of your bike insurance using the two wheeler/bike insurance premium calculator.
- Cubic capacity:
Cubic capacity is the capacity of the vehicle to carry the weight of the passengers and their luggage. The cubic capacity of your two wheeler bike decides the premium to be paid by you. Higher the cubic capacity, higher would be the premium. Most of the two wheeler bikes have a cubic capacity of less than 150cc and only a few bikes have cubic capacity more than 150cc.
The third party premium for bike with different cubic capacities is given below:
| Engine Capacity |
Third party premium |
| Not more than 75cc |
Rs.482 |
| More than 75cc but less than 150cc |
Rs.752 |
| More than 150cc but less than 350cc |
Rs.1193 |
| More than 350cc |
Rs.2323 |
The third party premium rates are decided by the Insurance Regulatory and Development Authority of India and are subject to change each year depending on various factors such as Loss ratio, GWP collected etc. The third party premium rates decided by IRDA would be constant across all the insurance companies.
- Make & Model:
The make and model of your 2 wheeler bike insurance also determines the premium to be paid by you. Insurance companies decide the premium to be paid by the customers on the basis of the make, model being used by them. Some make models have the highest premium while some make models have the lowest premium. This is due to the replacement costs associated with the parts of that particular bike make at the time of claim. Higher the replacement costs, higher would be the loss ratio for an insurance company thereby increasing the premium to be paid.
For instance few companies charge high premium for Yamaha bikes when compared to the Honda bikes, this is due to the cost of replacement of parts at the time of accident is high for Yamaha models. Imported bikes are also charged heavy premium as even small claim needs parts to be imported from abroad which increases the claim cost thereby increasing the loss ratio of the insurance company.
- Date of registration:
The manufacturing year and the date of registration also decide the premium of your two wheeler bike. The date of registration is used to calculate the premium to be paid by the customer. The date of registration or manufacturing date gives the age of the vehicle according to which the premium is calculated using the online two wheeler insurance premium calculator.
Few insurance companies have new vehicles in the preferred segment while other insurance companies have vehicles aged above 5 years in the preferred segment. This is due to the loss ratio experienced by those insurance companies according to the age of the two wheelers. For example few insurance companies offer bumper to bumper add-on only up to 5 years of age and any claim up to 5 years would need to shell out more money from insurance companies pocket, once the vehicle crosses 5 years of age without any add-on support the claim to be paid will reduce by almost 50% thereby improving the loss ratio of the insurance company.
- RTO location:
For the purpose of insurance cities in India are divided into 2 zones namely; Zone A – All capital cities including Metropolitan cities & Zone B- Other than those in Zone A. The premium for vehicles registered in Zone A would be higher than those registered in Zone B. The RTOs in the Zone A would be charged higher premium than those in the Zone B.
This is due to the loss ratio in these Zones which decide the premium to be paid by the customer using the online bike insurance premium calculator. The logic behind this concept is that the Zone A cities has the highest number of two wheelers and the usage is high in these cities which in turn increases the probability of accidents and claims. Hence the premium is high in these cities as the claim ratio would be high in these cities when compared to the Zone B cities.
- Add-ons:
Add-ons or riders are the extra coverage offered by the insurance companies to your two wheeler bike on payment of extra premium. The add-ons are available in the online two wheeler insurance premium calculator and the premium increases or decreases on the basis of the add-ons opted. Add-ons such as Bumper to bumper or nil depreciation or zero depreciation, Consumables cover, Engine and Tyre cover, Key replacement cover etc. are the most common add-ons available in the two wheeler insurance policy.
Most of the insurance companies offer only the Bumper to Bumper add-on cover and that too only for 2-3 years of vehicle age. More the number of add-ons, high would be the premium of your two wheeler bike calculated using the online two wheeler bike premium calculators.
- NCB:
No claim bonus (NCB) is the discount offered by the insurance companies on the own damage premium for not making any claims in the previous year policy period. Basically it is a reward in the form of extra discount which is offered to the owner/driver of the two wheeler bike for not making any claims in the previous year. Higher the no claim bonus on your bike, lower would be your own damage premium.
No claim bonus is offered at the time of renewal of your bike insurance and it ranges from 0% to 50% in 5 years. If any claim is made in any year, the no claim bonus would be reduced to 0% in the subsequent year and the cycle repeats again. The no claim bonus is used to calculate your bike insurance premium using the online two wheeler insurance premium calculator.
- Insured Declared Value:
Insured declared value or IDV is the sum insured under your two wheeler insurance and the maximum liability of the insurance company in case of any claim. The insured declared value is decided by the insurance companies and for the first year it is taken as 95% of the Invoice price of your bike. After first year the IDV decreases at 10% each year due to the depreciation of the two wheeler bike as a result of wear and tear.
Insured declared value is the value of the bike agreed by the insured customer and the insurance company at the time of policy issuance. Higher the IDV, higher would the own damage premium of your bike. It is important to strike a balance between the IDV and the premium to ensure your bike is insured sufficiently. IDV is a factor which determines the premium to be paid by the customer using the online two wheeler bike insurance premium calculator.
- Anti theft devices & AAA membership:
Lastly the most important factor which influences the premium of your two wheeler bike is the installation of Anti theft device and AAA membership. Anti theft devices such as Burglar alarms and GPS devices installed in a bike reduce the chances of the bikes getting stolen and also increases the chances of recovery thereby reducing the loss ratio of insurance companies. Automobile Association of India membership also reduces the premium to be paid by the customer.
Anti theft devices and AAA membership are also taken into consideration while calculating the two wheeler bike insurance premium using our online bike insurance premium calculator.
For online two wheeler bike insurance premium calculator please visit Two Wheeler Insurance and get the best bike insurance quotes from the top general insurance companies.