Is Motorcycle Insurance More Expensive Than Car Insurance?

Riding a bike is a fun way to get around, but it includes more risk than driving the car. By having the right motorcycle insurance, you can protect yourself and the bike. If you already own a car and willing to purchase a new bike and want to learn about the difference between car insurance and motorcycle insurance then you are at the right place.  Read this article to know which one is expensive and why?

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Understanding the Significance of Motorcycle Insurance

Motorcycle insurance is a type of two-wheeler insurance that covers the expenses for the damages to your vehicle or a third party due to an accident, natural or man-made calamities, theft, and fire explosion. According to Motor Vehicle Act, it is mandatory to have third-party motorcycle insurance to protect yourself from the third-party liability cost. ​For instance, Mr. A while driving a bike meets with a road accident and does not have any kind of motorcycle insurance. In this case, the entire cost of damage or loss will be borne by him. 

It also means if there is property damage to the third party, he will also bear the liability cost for the third party.

However, in the same situation, if Mr. A has a motorcycle insurance cover, then the entire loss and third-party liability will be taken care of by his insurer.

The fact is when you purchase a motorcycle insurance policy, the amount you pay as the premium is way less than the total sum insured. Moreover, driving a motorcycle is riskier than driving a car.  An individual driving the bike is more exposed to danger than all the people seating in the car. That is why two-wheeler insurance offers you coverage against personal physical injury, damage to the vehicle, and third-party liability cover. 

Therefore, not having two-wheeler insurance could end up facing many problems. As horrible as it would be to lose your driving license, or have to pay a hefty fine or imprisonment, it could be even worse as you have to take care of all the expenses during the accident.

How Motorcycle Insurance Differs from Car Insurance?

Most people think that motorcycle insurance works similarly to car insurance. While both of the coverage perform the same purpose, and their claims process is similar, but there are a few differences that you need to understand. Below we have mentioned how motorcycle insurance is different from car insurance-

1. Personal Injury Protection

Motorbikes are more prone to risk and offer very little physical protection. During an accident, the rider is usually thrown from the vehicle with the force. Ultimately, they are more likely to get injured than other four-wheelers. So, to give extra protection an option form of coverage known as Personal Injury Protection (PIP) is offered for the rider.

Hence, motorcycle insurance coverage is different from car insurance, and it is essential for the driver to be insured.

2. Passenger Cover

A car insurance policy automatically covers protection for the passengers in an accident as long as you buy more than standard liability coverage. However, motorcycle insurance coverage is different as bikes are usually presumed to be a transport for a maximum two person i.e. rider/driver and pillion. So, to also ensure the safety of its pillion or guest, a passenger cover insurance is offered by the insurer. It only applies if you are not liable for the injuries. Medical payments coverage is another option that covers injuries regardless of fault.

3. Laid-up Insurance

Your insurer understands the circumstances that there is no risk of an accident during the winter season when your motorcycle is laid up in the garage. That is why laid-up insurance comes in the picture that covers you against various events like theft, fire, parking, windscreen, and other threats due to winter storage. The objective of laid-up coverage is to reduce your annual insurance costs, but you won't get coverage if you take your bike out for a ride in the period and meet with an accident.

4. Unique Add-on Covers

Motorcycle insurance can be tailored with different types of unique add-on coverage that are usually not available with your car insurance. Along with common add-ons as a rider, you can purchase covers like roadside assistance cover, trailer coverage, coverage for modified accessories, and equipment like saddlebags & chromes.

Is Motorcycle Insurance Expensive Than Car Insurance?

The value of a motorcycle is significantly less than a car. However, insuring motorcycle insurance can cost you more. Since motorcyclists are more prone to an accident and thus, it leads to higher insurance premiums. In research, it was found that a person riding a bike is 5 times more likely to get injured and 29 times they are more likely to receive fatal injuries in crashes than someone who is driving a car.

But there are various ways by which you can reduce the premium amount like- having an inexpensive motorcycle rather than having a superbike or sports bike and maintaining a good riding history.

The insurance premium amount is decided by the amount of risk covered.  The cost of a motorbike is always less than buying a car but the damage risk associated with it significantly is very high. That is why a motorbike insurance policy is more expensive than a basic car insurance policy and it also depends on the state's policy.

Conclusion

As you can see, the different vehicle has different insurance policy and thus different price. Though motorcycle insurance has many similarities with the characteristics of car insurance policy, don't make the mistake of assuming they both are the same. Do check your policy terms and conditions carefully before buying.

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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.

^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.

#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.

*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)

#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.

*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis