Bike Insurance Cost: Factors Affecting Premium and Ways to Save

What Is the Cost of Bike Insurance?

There is no fixed price when you are buying a bike insurance policy because the premium varies from one bike and policyholder to another. A basic third-party bike insurance policy is based on the bike's engine capacity and is set by the IRDAI.

The overall bike insurance premium is determined by the following factors:

• Type of two-wheeler insurance policy
• Bike's engine capacity or cubic capacity
• Age and model of the bike
• IDV of the bike
• Location of registration
• Policyholder's claim history
• No Claim Bonus (NCB)
• Add-ons selected
• Voluntary deductible
• Anti-theft devices
• Certain modifications made to the bike

You can use a two-wheeler insurance calculator to compare premiums and understand how different policy selections affect the final price.

What Factors Affect Bike Insurance Premium?

Here is an explanation of the various factors that affect the bike insurance premium:

1. Type of Bike Insurance

   The type of bike insurance coverage you choose has a direct impact on your premium. A third-party bike insurance policy covers the legal liability arising from injury, death or property damage caused to a third party. A comprehensive bike insurance policy includes third-party liability cover along with protection against specified damage to your own bike. Therefore, the premium for comprehensive bike insurance will generally be higher than that of a third-party-only bike insurance policy because it provides broader coverage.

2. Cubic Capacity of the Bike

   The cubic capacity (CC) of your bike is another factor that affects the premium, particularly for third-party bike insurance. Bikes are categorised into different engine-capacity slabs for third-party premium calculation. Generally, a bike with a higher engine capacity falls into a higher premium slab. This means the bike insurance premium based on CC can differ even when two bikes are insured under otherwise similar conditions.

3. Age of the Bike and Depreciation

   Does depreciation affect your two-wheeler insurance premium? Yes, it can affect the value used for own-damage two-wheeler insurance coverage. As a bike gets older, its value generally depreciates. This is reflected through the IDV, which represents the approximate current market value of the insured bike for the purpose of own-damage bike insurance claims. A lower IDV can generally result in a lower own-damage premium, although it also means a lower maximum claim amount in the event of total loss or theft.

4. Insured Declared Value (IDV)

   IDV is an important factor in determining the own-damage portion of your bike insurance premium. For a new bike, the IDV is largely based on the manufacturer's listed selling price after applicable depreciation. For older bikes, factors such as the bike's age, condition and prevailing market value may be considered. Choosing an appropriate IDV is important. Selecting an unnecessarily low IDV in bike insurance just to reduce the premium can reduce the amount payable in a total-loss or theft claim.

5. Location of Registration

   The location where your bike is registered can also influence the premium. Areas with higher traffic density, accident frequency or theft risk may have different premium calculations. The applicable premium can therefore vary depending on the bike's registration location.

6. No Claim Bonus

   If you have not made an own-damage claim during the relevant policy period, you may be eligible for a No Claim Bonus (NCB) on bike insurance renewal, subject to the applicable policy terms. NCB can help reduce the own-damage bike insurance premium while retaining the required two-wheeler insurance coverage.

7. Bike Insurance Add-Ons

   Bike insurance add-ons provide coverage beyond the standard policy and generally increase the premium. Depending on the insurer and policy, available add-ons may include zero-depreciation cover, roadside assistance cover, engine protection cover, consumables cover, etc. Instead of selecting every available add-on, choose those relevant to your bike and usage.

8. Anti-Theft Devices

   An ARAI-approved anti-theft device for a bike can affect the premium, as the insurer may offer a discount for installing one. The device should be approved by the Automotive Research Association of India (ARAI).

9. Bike Modifications

   Bike modifications can affect two-wheeler insurance depending on the nature of the modification and the insurer's terms. If you make structural, performance or other significant modifications to your bike, disclose them to the insurer beforehand. Undeclared modifications can create issues during claim assessment. For detailed information, see our guide on how bike modification impacts two-wheeler insurance premiums.

10. Claim History

    Your claim history can affect the premium payable at renewal, particularly where an own-damage claim results in loss of the applicable NCB. Maintaining a claim-free record can therefore help you retain your eligible NCB and reduce the own-damage bike insurance premium.

How to Calculate Bike Insurance Premium?

You can calculate your bike insurance premium online using a two-wheeler insurance calculator available at Policybazaar.com. Enter your bike's registration number to get the estimated cost of your bike insurance policy. You can compare bike insurance quotes online and understand the difference in premiums offered for similar coverage.

How to Get Affordable Bike Insurance?

If you are looking for an affordable bike insurance deal, focus on reducing unnecessary costs without compromising the coverage you need. Some ways to manage your bike insurance premium include:

• Compare policies from different insurers before buying or renewing.
• Choose the coverage that matches your requirements.
• Select only relevant two-wheeler insurance add-ons.
• Maintain a claim-free record to retain an eligible NCB.
• Install an approved anti-theft device if eligible for a discount.
• Choose an appropriate IDV instead of automatically selecting the lowest value.
• Consider the voluntary deductible based on your ability to bear a portion of the claim.
• Renew your policy on time to avoid a break in coverage.
• Use an online bike insurance calculator to compare premium options.

How to Lower Bike Insurance Premium?

If your bike insurance price is too high, review the factors that contribute to the premium rather than choosing the cheapest policy solely on price. You can potentially lower your premium by following these tips:

• Compare premiums from multiple insurers.
• Use your eligible NCB.
• Avoid unnecessary add-ons.
• Choose a suitable IDV.
• Install an eligible anti-theft device.
• Select a suitable voluntary deductible.
• Compare policies before renewal.
• Maintain a claim-free record.

The lowest premium is not necessarily the most suitable option. Compare the coverage, exclusions, deductibles, IDV and claim-related terms along with the price.

Bike Insurance Discount: How Can You Save?

A bike insurance discount may be available through factors such as NCB or eligible anti-theft devices, subject to applicable terms. You may also reduce the overall cost by avoiding unnecessary add-ons and comparing quotes before buying or renewing. However, discounts should not be the only factor when selecting a policy. Check the coverage and terms before making a decision.

Why Does Bike Insurance Cost Differ for Different Bikes?

Two bikes can have different two-wheeler insurance premiums even when they belong to the same category. This is because of various factors, such as engine capacity, bike value, IDV, age, registration location, model and variant, claim history, two-wheeler insurance policy type and add-ons.

For example: A higher-value bike may have a higher own-damage bike insurance premium because the cost of repairing or replacing it is higher.

Third-Party vs Comprehensive Bike Insurance Cost

The cost of third-party bike insurance and comprehensive bike insurance varies depending on the scope of coverage. A third-party bike policy provides coverage for damage caused to a third party in a road accident. A comprehensive bike insurance policy offers coverage for both own damage against various unforeseen circumstances and third-party liabilities in a single policy. That is why the cost of both types of policies varies. A third-party bike insurance premium is generally lower than a comprehensive bike policy.

FAQs - Bike Insurance Cost