9 Factors That Determine Your Bike Insurance Policy Cost


Motor insurance premiums for bike owners can vary widely due to several factors. Let’s explore the top factors affecting bike insurance policy costs and how premiums can be adjusted.

  1. Two-Wheeler Type: The type of bike plays a pivotal role in determining insurance costs. The engine’s cubic capacity is the foundation for calculating premiums, with bikes featuring larger cubic capacities incurring higher insurance costs.
  1. The Bike’s Worth: A bike’s brand, features, and market value significantly impact insurance costs, with high-end models like Ducati incurring higher premiums than more affordable options. Typically, bike insurance policies range from two to three per cent of the bike’s market value, accounting for potential repair or replacement expenses.
  1. Modification: Modifying a bike for better looks or performance can raise insurance premiums. Insuring modified parts separately is recommended to avoid potential financial losses, but more modifications lead to higher overall policy costs.
  1. Theft Prevention Tools: Insurers assess whether policyholders take adequate precautions to prevent theft. Installing anti-theft devices is effective, signalling the insurance company that the owner is responsible and proactive. This can result in a reduction in insurance costs as the risk of theft decreases.
  1. Riding Skills: The skills and expertise of the bike rider contribute significantly to insurance costs. Riders with a history of accidents or multiple claims are considered higher risks, leading to increased premiums. Safety-conscious riders who prioritise cautious riding can lower their insurance costs over time.
  1. Add-Ons: Comprehensive bike insurance policies often offer additional coverages known as add-ons. Choosing these add-ons should be based on individual needs, as an uninformed decision can lead to higher insurance premiums.
  1. Concessions: Insurance plans often come with potential savings that policyholders may need to be aware of. No Claim Bonus/Concession is one incentive that rewards policyholders who do not file claims during the preceding policy year. This concession can result in a significant reduction, up to 50%, in bike insurance premiums. ## *
  1. Membership: Belonging to specific groups, such as the Automobile Association of India, may provide policyholders with concessions from certain motorbike insurance providers. Being part of recognised associations can be a beneficial factor influencing insurance costs.
  1. The Renewal Gap: Allowing a lapse in bike insurance renewal, especially after an accident, can lead to financial consequences. Insurance companies provide a 30-day renewal grace period, but missing it may require purchasing a new policy at higher rates. Also, a missed renewal can lead to losing No Claim Bonus eligibility, affecting premium costs.

How Can The Premium Cost Be Adjusted?

To adjust insurance costs, use a bike insurance calculator. Input relevant factors to get an approximate policy cost and a detailed price list, empowering informed decisions for a balanced and cost-effective insurance policy. Third party bike insurance is mandatory as per the law. Claims are subject to terms and conditions set forth under the motor insurance policy.

To check your bike insurance status, you can use online portals provided by insurance companies or visit their official websites for quick and convenient verification.

Understanding the factors influencing bike insurance costs allows policyholders to make informed decisions, potentially reducing premiums while ensuring comprehensive coverage.

Standard T&C Apply

All savings are provided by the insurer as per the IRDAI-approved insurance plan.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


Please enter your comment!
Please enter your name here