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Here’s How Much Bike Insurance Costs - And What It Really Does

Two-wheeler insurance premium is based on various factors including age, location, make & model of the bike, choice of coverage, driving history and claim history. The cheapest insurance policy is available by going for third-party liability cover. The insurance policy covers the third party damages and there will not be compensation for own damage. On the other hand, a comprehensive policy will give the best coverage. All kinds of possible risks on the road, injuries and death will be covered by the policy. Policyholders should assess their insurance needs and they should opt for the best policy as per their needs.

Insurance Requirements

The factors which influence the insurance premium should be known to policyholders. The bike insurance is must as per the law. You cannot ride your vehicle without driving license, registration of the vehicle and the bike insurance policy. You should also obtain the pollution certificate from concerned authorities.

  • Mandatory - Bike insurance is mandatory 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 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.

Insurance Premium

Two-wheeler insurance premium is based on the following factors:

  • Deductibles - If the deductible is high, the premium will be low. If the repair/replacement cost of the vehicle is high, the out of pocket expenses increase when you opt for higher deductible. Hence, you should make a judicious decision about the deductible.
  • Safety Devices - You should include safety devices to enhance the safety of the vehicle. Some of the safety accessories are arrangement of key lock and anti-theft devices. When you take steps to improve the safety of the vehicle, the risk exposure on the vehicle will decrease. Hence, you are prone to pay lower insurance premium.
  • Make and Model of the Vehicle - The insurance premium will be influenced by the make and model of the vehicle. For example, you will want to pay very high insurance premium for sports vehicles. The engine capacity of a sports bike will be high. The spare part cost or repair of a luxury bike will be high. On the other hand, the premium for low-profile bikes will be low.
  • Minimum Coverage - You should buy at least a third-party insurance cover so that you can ride on public roads without any issues.
  • Age of the Insured - As per the perception of the insurance company, young riders have high risk than experienced bike riders. Hence, the insurance premium paid for a vehicle owner of 18-year old is higher than the insurance premium paid by a vehicle owner or 55-year old.
  • No-Claim Bonus - you will get no-claim bonus for every claim-free policy year. If there are minor damages to the vehicle, you should not make a claim. No-claim bonus varies from 10% to 50%.
  • Vehicle Condition - The age of your vehicle will have an impact on the insurance premium. The cubic capacity of the engine will be considered for the insurance plan. The CC of sports or luxury bikes will be high. Hence, the premium for luxury bikes will be very high. The other parameters which influence the premium include fuel type, modifications of the vehicle, place of registration.
  • Anti-Theft Discount - By installing approved anti-theft devices on your bikes, you will be eligible for discounts on vehicle insurance premium. Some of the anti-theft devices which can be installed on your vehicle include anti-theft alarm, GPS device and safety gear locks.
  • Nil Depreciation Cover - The insurance premium will increase by subscribing to additional riders such as cashless hospitalization, nil depreciation cover and medical cover. While buying an insurance policy, you should not opt for unnecessary riders. At the same time, you should opt for useful riders which are relevant to your vehicle and driving conditions. When you buy a nil depreciation cover for your bike, the bike will be restored to its original condition after the damage.

Benefits of Third-Party Coverage

The insured will get assistance for loss or damage of the third party person or vehicle. You can calculate the third party bike insurance cost by using the online calculator posted on insurance websites.

If you are buying a two-wheeler insurance policy for an old vehicle, you will cover the risk by buying third-party insurance plan. The policy can be renewed online from the comforts of your home or office.

Benefits of Comprehensive Coverage

With a comprehensive insurance policy, all kinds of risks associated with the vehicle, property and people will be covered in a very efficient manner. You can compare various insurance policies offered by different companies and you can settle for the best policy without any issues.

A brand new vehicle should be covered by a comprehensive insurance policy so that the vehicle will be restored to its original value when it goes through the unfortunate event.

Tips to Reduce the Premium

  • Avoid Additional Riders - If you have a health insurance policy which covers various kinds of accidents, you should not subscribe to medical coverage under the vehicle insurance policy. Thus, you can reduce the premium drastically by avoiding irrelevant riders on your policy. If you have no pillion, you can avoid the insurance for the pillion rider. The insurance premium will decrease.
  • Pick a Small Bike - You can buy a small 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 Modified Vehicles - 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.
  • The Frequency of Ride - If the bike is on the road for more number of hours, the risk will increase. The risk to the insurance company will be low when the frequency of moment on the road is less. Hence, you should fill the insurance proposal form with relevant information.
  • 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.
  • Vehicle Parking - The vehicle should be parked in the parking space. If you park the bike on the street, it may be stolen very easily.
  • Anti-Theft Locks - You can take additional security measures such as anti-theft lock to enhance the safety of the bike.
  • Buy Another Insurance Policy - If you buy another insurance policy such as home or health insurance policy from the same company, you will get discount on the premium.
  • Buy Long-Term Insurance Policy - You can buy a two-wheeler insurance policy for 3 years. The insurance premium will be the same for the three years. Hence, you can save money by paying a low premium. You can get a 30% discount by applying for 3-year two-wheeler insurance policy from New India Assurance.

Bikes and Insurance Premium

You can go through the following make & model of vehicles to understand the engine capacity and the approximate price and insurance cost. If you are buying a new bike, you should consider various aspects including mileage, maintenance cost, engine capacity, wheel size, and insurance premium.

As you choose proven models, there is no difficulty in procuring the spare parts. The repair or replacement will be done very easily. If your vehicle is involved in an accident, you can get cashless service at a garage which is in the network managed by the insurance company.

Bike name Engine capacity Approx. Price Average premium
Hero Honda Splendor 125cc Rs. 70,000 Rs. 1300 to Rs. 1800
Honda Activa 110cc Rs. 65,000 Rs. 1350 to Rs. 1750
TVS Apache RTR 180cc Rs. 90,000 Rs. 1750 to Rs. 2300
Bajaj Avenger 220cc Rs. 1 lakh Rs. 1800 to Rs. 2000
Yamaha Fazer 149cc Rs. 1.07 lakh Rs. 1550 to Rs. 2200


Online Bike Insurance Policy

To reduce the bike insurance cost, you can buy a two-wheeler insurance policy online. You can find bike insurance calculator on the official website of the insurance company. The information is also available on the website which aggregate information from various insurance companies.

The price comparison websites will help you choose the best policy to fulfill your needs. You should provide the following details to get a quick quote on your vehicle insurance premium:

  • Date of registration of the vehicle
  • Place of registration (city or town)
  • Make and model of the bike
  • Fuel type of the bike
  • Type of policy
  • Period of policy
  • Information about additional riders
  • Name
  • Mobile number
  • Email address

After filling the above details accurately, you should click on the ‘calculate’ button so that the insurance premium quote will be sent to your email address.

The bike insurance calculator can be used while renewing your insurance policy as well. If you can find better options, it is possible to switch over to a new company from the existing company. The IRDAI facilitates the free moment of the customer from one insurance company to another insurance company. Hence, you should not hesitate to strike the best deal by buying or renewing the insurance policy online.

Long-Term Bike Insurance Policy

With a long-term bike insurance policy, you can cut down various kinds of expenses. You will not to go through the annual reminders of the renewal of the policy.

The two-wheeler insurance policy will cover an unfortunate event. However, most of the two-wheeler owners are not aware of the importance of the bike insurance. As the risk may not take place, most of the bike owners would not pay attention to renew the insurance on annual basis.

With the initiation of the IRDAI (Insurance Regulatory and Development Authority of India), two-wheeler insurance companies are permitted to offer long-term two-wheeler insurance plans to improve the penetration of insurance policies. Now, customers will be able to buy an insurance policy which is valid up to 3 years.

Benefits of Long-Term Bike Insurance Policy

  • The premium cost will decrease
  • Customers will not bother about the renewal of the policy on annual basis
  • Policy cancellation facility - Even though the policy is subscribed for a long-term, it can be cancelled very easily as per their convenience. The insurance company will reimburse the amount in proportion to the unutilized period.

Drawback of Long-Term Insurance Plan

  • If the policy premium decreases, there will not be financial benefit to the customer.
  • If you sell the policy during the tenure, you will incur financial loss.

Conclusion

Two-wheeler is the most favored mode of transport in India. There are many families which manage more than one bike. Bikes are used by students and people of all age groups to attend various kinds of jobs on daily basis. You should choose the best bike as per the mileage, safety and drivability. It is also important to consider a bike from the insurance point of view as well. You can buy the bike insurance policy from reputed companies at the best price.  As you choose the best vehicle insurance policy, there will be great peace of mind and you will fulfill a legal obligation as well.

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