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Is Two-Wheeler Multi-Year Insurance Advantageous?


Written by Saad Ahmad

Updated Jun 02, 2022

Is Two-Wheeler Multi-Year Insurance Advantageous?

A number of elements go into determining the motorbike insurance rate. The insurance company uses a range of factors to predict risk when calculating the rate for your bike insurance policy. To understand why your plan charges a certain price, you need to be aware of the factors that might impact the cost of your insurance coverage.

Is Two-Wheeler Multi-Year Insurance Advantageous?

Factors Affecting the Cost of Bike Insurance

A list of elements that determine the cost of a bike insurance coverage is as follows:

  • Model and Year

It is true that the manufacturer and model of a bike have an impact on its price. Because insurance is acquired to protect the value of the bike, the manufacture and model of the bike are the obvious criteria that influence the bike insurance rate. If you have a low-cost bike, your insurance rate will be cheaper as well. However, if you have a high-priced sportbike, you will have to pay a larger premium.

  • Bike's Age

The age of a bike is also taken into account when calculating the insurance cost. This is why, in order to give policy pricing, every insurance portal wants you to input the model year of your bike when obtaining a bike insurance policy. A new bike has a higher market value than an old bike, which implies the former will have a higher premium and the latter will have a lower premium.

  • Declared Value (Insured) (IDV)

The current market value of the bike is represented by the Insured Declared Value. The IDV of a motorcycle is calculated once a year since the value of the motorcycle decreases over time owing to depreciation. Because the bike insurance provider is only responsible for paying compensation up to the value of the bike, the IDV is factored into the premium calculation.

  • Power of the Engine

One of the most prevalent and important factors that influence bike insurance premiums is the engine capacity of the bike. The cubic capacity of an engine determines its size (cc). You will be paid a lower premium if your motorcycle has an engine capacity of 75cc or less. If your bike has a displacement of 350 cubic centimeters, however, you will have to pay a higher price for your bike insurance coverage.

  • Devices to Prevent Theft

Many insurance companies provide discounts for installing security devices that have been approved by India's Automotive Research Association (ARAI). It means that if your bike is equipped with approved safety equipment, your bike insurance premium will be cheaper since contemporary technologies reduce the risk of bike theft and loss, decreasing the responsibility of insurance companies to compensate you.

  • Bonuses without a claim (NCB)

The No Claim Bonus is a bonus given by insurers to policyholders who do not file a claim during the policy year. The NCB is offered as a reduction on the next policy year's premium. With continuing claim-free years and responsible driving, you may earn up to 50% of this reward. As a result, the insurance premium will be affected since it will have to be paid after the NCB discount has been deducted.

Take Away

The above-mentioned elements should be kept in mind while selecting motorbike insurance coverage. You can simply calculate the correct premium for your bike if you are aware of these aspects. It also comes with a free calculator to assist you to figure out the premium. After that, all you have to do is evaluate several policy quotes and pick the one that best fits your needs. It will help you keep your bike safe by providing you with a low-cost insurance policy.

Also read: Bike Insurance Claims Can Be Rejected for a Variety of Reasons

In India, Why And How Do Two-Wheeler Insurance Background Checks Take Place?


Written by Saad Ahmad

Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Read More


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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