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Factors that Affect Two-wheeler Insurance Premium

Updated On Jun 07, 2022

Factors that Affect Two-wheeler Insurance Premium

 Before we get on with the topic let us begin by understanding the Insurance premium. Insurance Premium is the amount that is paid by businesses or individuals who have taken an insurance policy. These have to be paid under a certain deadline and failure to do so may result in the cancellation of the policy and also loss of coverage.

What is a Two-Wheeler Insurance Policy?

So, what is a two-wheeler insurance policy? You might have heard of different insurance policies such as life, home, and many more. A Two-wheeler insurance policy is just like others, it is an insurance plan for the protection and coverage of two-wheeler vehicles like bikes and more. The protection and coverage that are discussed would be because of accidents, thefts, natural disasters, vandalism, etc. 

Benefits of Two-Wheeler Insurance Policy

Having your two-wheeler vehicle insured is beneficial as you are safe and it would not harm you in any way possible.

  • Protection against natural disasters, keeping your bike insured might help to cut out unnecessary expenses that one may suffer due to disasters like floods, earthquakes, etc.
  • Protection from burglary, war, etc.
  •  Cashless Claim, which means that if your bike is damaged for any reason, taking it to a garage will not cost you anything as the bill would be settled between the owner of the garage and the insurance provider.

Key Factors That Affect Two-Wheeler Insurance Premiums

Several factors need to be considered that can influence the cost of the two-wheeler insurance policy.
1.     Make, Model, Variant (MMV)- Models do indeed make a high impact on the price. And since the main objective of insurance is to protect the value of the bike, the model may by default be an element to vary the rate of the bike insurance. 
2.     Capacity of the Engine- This is a common and important factor as the capacity of the engine should be more than 75 cc if it is less, you will be paid a lower premium.
3.     Gadgets to Prevent Theft- The devices that can be used such as small hidden cameras and other stuff may reduce the chance of theft and loss which lessens the duty of the insurance company. This may result in the insurance rate going down.
4.     No claim bonus (NCB)- If you are renewing your bike insurance and have not filed any claim previously, then you can receive a discount on the premium.
5.     Moderation in the bike- If anything has been modified in the bike for looks or performance it will increase your premium if modifications need to be covered.


Therefore, it is important to understand two-wheeler insurance especially if you have a bike. Two-wheeler insurance may help you cover any damages and provide protection. Now since you know the effects of this policy it might be helpful to compare it with different policies and select a policy carefully, that offers the best value for money.

Also Read: Why Is Two Wheeler Registration Certificate (RC) Important


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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