How to Calculate Car or Bike Insurance Premium The insurance premium calculation of any vehicle depends on some factors that you need to know about which we are going to tell in this report.
How to Calculate Car or Bike Insurance Premium In today’s time everyone has some or the other vehicle. People keep a car or a bike with them according to their needs. It is common for vehicles to have an accident anytime while plying on the roads.
In such a situation, to keep the vehicle safe, it is necessary to get insurance. It not only helps you recover damages caused to your vehicle due to accident but also vehicle theft.
Talking about vehicle insurance, there are many plans offered by the companies, which reduce the damages caused to your vehicle under different circumstances. The insurance premium for any vehicle is decided according to the plans. In such a situation, on what basis the premium of an insurance plan is decided. You should have complete information about this, about which we are going to tell in our report.
Insured’s Declared Value (IDV)
The Insured Declared Value (IDV) of any vehicle is equal to its market value. The higher its value, the more you can claim from the insurance company at the time of claim. However, the IDV keeps on decreasing every year due to depreciation.
Vehicle Age
The age of your vehicle is one of the most important factors while calculating the insurance premium. Due to this, the old vehicle may cost more at the time of any accident. How old is your vehicle at the time of insuring? Special attention should be paid to this matter.
Vehicle Registration
Vehicle registration plays a very important role in determining the insurance premium. If you live in the city, then the chances of damage to your vehicle are high. Due to this the insurance premium is also higher in the city.
Deductibles
Deductible is the proportion of the claim amount that you will have to pay out of pocket at the time of claim. You can request for a higher deductible from the insurance companies. Your premium can also be significantly lower due to the higher deductible.
