What is Bike Insurance Costs - And What It Really Does?

What is Bike Insurance and Why Do You Need It?

Bike insurance is a contract between you and an insurance company that protects your two-wheeler from potential risks such as road accidents, theft, vandalism, fire, and natural disasters. Depending on the type of coverage you choose, it can also protect third parties involved in an accident caused by your bike.

Important Terms in Bike Insurance

Here are some important terms in a bike insurance policy that you must be aware of:

• Third-party Liability Cover: It is a mandatory coverage as per the Motor Vehicle Act, 1988.
• Natural Damages: Your bike insurance should cover natural damages such as cyclone, floods, fire, earthquake and landslide.
• Manmade Damages: There are manmade disasters such as act of terrorism, war, theft, and burglary.
• Coverage of Risk: There is no better way than buying an insurance policy to overcome the uncertainty. As soon as you roll out your vehicle from the showroom to the public road, there will be risk to the rider as well as the vehicle. Various kinds of risks can be covered by choosing a two-wheeler insurance policy.
• Premium: The bike insurance premium that you pay towards the insurance policy is very low compared to the benefits that you get with the policy. The premium rate will be decided by the insurance company after assessing the risk factors. The make and model of the vehicle, driver's history, location, and frequency of travel are some of the factors which influence the premium.

Types of Bike Insurance Coverage

There are different types of insurance policies, and each offers a different level of protection.

Third-Party Bike Insurance Cover (Mandatory Policy)

• Covers bodily injury, death, or property damage to a third party in case of an accident.
• Does not cover damage to your own bike.
• Required by law to legally ride your bike in India. If you do not have, pay a bike insurance challan of ₹2000/- to the traffic authority.

Comprehensive Bike Insurance Cover

Includes third-party liability coverage plus:

• Own damage (due to accident, fire, theft)
• Damage due to natural disasters (flood, cyclone, landslide, etc.)
• Damage due to man-made events (riots, theft, vandalism)
• Recommended for full protection.

Standalone Own-Damage Bike Insurance Cover

• For those who already have third-party bike insurance.
• Covers damage to your own vehicle but not third-party liabilities.

What are the Bike Insurance Requirements in India?

To legally ride a bike in India, you need the following:

• A valid driving license
• Bike registration certificate (RC)
• A valid bike insurance policy
• A Pollution Under Control (PUC) certificate
• Failing to carry any of these documents while riding can lead to penalties, fines, or even license suspension.

Average Bike Insurance Cost in India

The bike insurance average cost in India varies widely. Factors such as model, city, engine size, and driving history matter. To know the premium for your bike model, you can use bike insurance calculator to find it available at Policybazaar.com.

However, here is table showing annual third-party bike insurance premium which is set and determined by IRDAI:

Whereas, the Comprehensive bike insurance plans cost depends upon various factors, such as bike's make model variant, bike value, additional coverage, claim history, etc.

10 Tips to Lower Your Bike Insurance Average Cost

• Pick a Basic Model: You can buy a basic model bike which can fulfill your needs. If the engine capacity is low, the premium will be low. The bike repair costs will be low when you buy a proven and old model of a reputed brand.
• Avoid Modifications: You should avoid picking modified or altered versions of bikes as they will be very expensive. The availability of spares or repair cost will be high. When you buy a modified vehicle, it will appear attractive and the vehicle may be stolen by thieves very easily.
• Lump Sum Payment: The insurance premium should be paid in lump sum. If you pay on monthly basis, the premium will be high.
• No claims: If you had not made claims on the insurance policy, the insurance company will offer a discount on the premium, called No Claim Bonus (NCB).
• Anti-Theft Locks: You can take additional security measures such as anti-theft lock to enhance the safety of the bike.
• Buy Long-Term Insurance Policy: You can buy a two-wheeler insurance policy for 3 year. The insurance premium will be the same for the three yea₹ Hence, you can save money by paying a low premium.

How to Use a Bike Insurance Premium Calculator?

A bike insurance premium calculator is an online tool that helps you estimate how much you'll pay for your policy. Policybazaar.com allow you to compare quotes from different insurers instantly.

For this enter details like:

• Bike brand and model
• Year of purchase and registration
• City of registration
• Click "Calculate" to view premium quotes from top insurers.
• Choose the plan that best fits your budget and needs.

Factors That Affect Your Bike Insurance Premium

Insurers calculate your premium based on risk assessment. The following factors influence the final premium amount:

• Bike's make, model, and variant: High-end or sporty bikes cost more to insure.
• Engine capacity (cc): Higher cc means higher premiums.
• Age of the vehicle: Older bikes generally attract lower premiums due to depreciation, but may get lower coverage.
• City of registration: Metro cities have higher premiums due to increased traffic risk.
• Usage frequency: Daily use may increase premiums due to greater wear and tear.
• Rider's age and experience: Young and inexperienced riders often pay more.
• Claim history: No prior claims may qualify you for discounts.

10 Proven Tips to Reduce Bike Insurance Premium

Here's how to lower your bike insurance cost without compromising on coverage:

• Choose a Basic Bike Model: Lower engine capacity bikes have cheaper premiums.
• Avoid Modifications: Fancy additions raise the premium and risk of theft.
• Pay Premium Annually: Paying monthly can result in higher overall costs.
• Don't Claim Minor Damages: Preserve your No Claim Bonus (NCB) for major savings in future years.
• Install Anti-Theft Devices: Certified devices like wheel locks can fetch discounts.
• Buy Long-Term Plans: Opting for 3 or 5-year insurance helps lock in low rates and avoid annual hikes.
• Increase Voluntary Deductibles: You agree to pay a portion of the claim, which reduces the insurer's risk and your premium.
• Bundle Insurance Policies: If you have car or home insurance with the same company, ask for multi-policy discounts.
• Compare Before You Buy: Use Policybazaar to find the most cost-effective policy.
• Renew Before Expiry: Renew on time to avoid lapsed coverage and loss of NCB benefits.

Buying or Renewing Bike Insurance Online

At Policybazaar.com, you can easily compare and buy your plan in minutes. Use the bike insurance calculator to enter key details and get instant premium quotes. If you're switching insurers during renewal, the bike insurance renewal price may be lower due to competition. Always compare multiple insurers for the best value.

India's roads are unpredictable, but your finances don't have to be. Choosing the right bike insurance plan helps you to stay legal, protected, and save money over time.

Whether you're looking for the average bike insurance cost, a monthly option, or checking your bike insurance average cost before renewing, always use online premium calculator to make the best decision.