A bike insurance plan has various components to it. This is why no two plans are identical in nature. This is a reason why you should always compare two wheeler insurance. Certain plans offer a particular type of cover, other plans offer a different cover. For instance, if you need a cover for your own vehicle, you will have to pay the own damage premium. Take a look at this article to know more about this very crucial bike insurance component.
‘Own damage premium’ calculation
The own damage premium calculation depends on a number of factors. These include
- The scope of cover – Own damage refers to the money you are expected to pay if your vehicle is damaged or stolen. The damage can result from a road accident, from a natural calamity such as a cyclone or an earthquake, from mishaps such as fires, etc. You also need to replace your vehicle if it is stolen. For all these purposes, you can opt for an own damage bike insurance and get a claim. The insurance provider will compensate for your loss. You can then use the insurance money to either repair your bike or replace it altogether, depending on the situation. Higher the scope of the cover and the fewer the exclusions, higher will be the bike insurance premium. You can use a bike insurance calculator to understand what your premium liability will be like.
- Value of the two-wheeler – An insurance cover depends on the value of the object being insured. So quite naturally the make and model of your two-wheeler plays an important role in determining the own damage premium. When you use a two wheeler insurance premium calculator, you are first asked what kind of a two-wheeler you own. If you have a TVS Scooty Pep, your premium will obviously be lower as compared to the premium for a Yamaha ZTR!
- IDV – Every vehicle depreciates in value with time. The Insured Declared Value [IDV] is calculated keeping this in mind. A bike insurance calculator first calculates the IDV and then arrives at the accurate own damage premium. Your own damage premium liability is also dependent on the IDV. The older the bike is, the lower your premium is likely to be. Use a two wheeler insurance premium calculator to get a better understanding of the exact figures.
- Insurer’s pricing – Bike insurance plans from different insurers have different rates. The own damage premium charged by one insurance provider will vary from the other. You, therefore, need to compare two wheeler insurance before you buy the plan. You will then find a good plan with the lowest and most comprehensive own damage premium.
- Inclusive of third-party liability – Your own damage cover is usually available with a comprehensive plan. It is an optional cover, whereas a third party cover is compulsory. When you use the bike insurance calculator to find your own premium liabilities, you see a combined price of your third party as well as own damage premiums. Do not get duped into paying a separate third party premium. A comprehensive plan that offers an own damage cover automatically offers a third party cover too.
The Final Word
As you can clearly see from the points mentioned above, an insurance premium depends on various factors. When it comes to your own damage premium, you need to be careful and see whether or not you are being charged accurately. Use the online premium calculators for this purpose. Also, keep your bike’s IDV in mind. If you do the math properly and more importantly if you compare before you buy, you will surely find the accurate rate that you have to pay as your own damage premium.