An insurance calculator is an excellent way to pick the best -two-wheeler insurance after comparing multiple options on many different insurance parameters. If you are planning to use the calculator to buy or renew bike insurance, make sure that you avoid 5 mistakes mentioned in this post.
Third party liability bike insurance is mandatory in India as per Motor Vehicles Act 1988. While the insurance costs are minimal, more than 2/3rd of the two-wheelers in India do not have an insurance policy. The complicated and time-consuming process of buying one is often touted as the main reason for this alarming statistic.
Online availability of bike insurance has significantly helped the owners. They can now easily buy and renew insurance online. Moreover, there are online insurance calculators which can be used to compare multiple insurance products and choose the best.
If you want to use one such calculator to buy a bike insurance policy, make sure that you avoid these mistakes-
- Setting the IDV too High
The IDV or the Insured Declared Value is the maximum amount that the insurance provider will reimburse in case of theft or total loss of your bike. In other words, it is the current market value of your bike and its age-related depreciation.
When using the calculator, lot of people set high IDV to increase the coverage amount. However, higher IDV also means higher annual premium. Many of the online calculators automatically select the IDV based on the model and year of purchase of the vehicle to offer you the best quotes.
- Giving Incomplete Information
Another common mistake is giving incomplete or inaccurate details while using calculator. The calculator considers the input provided by you to find the best quotes from different insurance providers.
Factors like purchase date, previous insurer, insurance claimed in the year and no claim bonus significantly affect the premium. Provide complete and accurate information to get the best quotes.
- Entering Wrong Manufacturing Date
You’ll also be required to enter the correct manufacturing date of your bike in the calculator. The manufacturing date can be found through the VIN (Vehicle Identification Number) or in the previous insurance document.
It is as per the manufacturing date of the bike that the IDV is calculated. So, make sure that you enter the correct manufacturing date.
- Entering Wrong Bike Name/Model
The premium can significantly vary between two different bikes and even different models of the same bike. If you have a relatively expensive bike or a bike that is rare, the insurance premium would be higher compared to a standard bike.
This is because the repair and replacement costs of such bikes are considerably higher and so the premium cost.
- Selecting the Wrong RTO
While a lot of you might not know that even the RTO in which the bike is registered also affects the premium of the bike insurance. For instance, as accidents and thefts are more common in metropolitan cities, the bike insurance premiums are higher.
When using a bike insurance calculator, ensure that you select the right RTO to get the best quotes.
A third-party liability insurance is not only mandatory but also does an excellent job of protecting the bike owner financially in case of an accident. Use an online calculator to find a -two-wheeler insurance policy that perfectly suits your bike and your insurance needs.