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The Factors That Affect Two Wheeler Insurance In India

Published On Aug 12, 2022

The Factors That Affect Two Wheeler Insurance In India

A number of factors affect the price of motorbike insurance. The insurance provider takes into account a variety of variables to calculate the cost of your bike insurance policy in order to assess risk. Therefore, you need to be aware of these factors to make an informed decision.

The Factors That Affect Two Wheeler Insurance In India

Factors That Affect Cost Of Two Wheeler Insurance

Find the list below that influence the cost of a bike insurance policy:

  • Make and Model the Bike

It is evident that a bike's price is influenced by its make and model. Additionally, the bike's model and manufacturer are the obvious factors that affect the bike insurance rate because insurance is purchased to preserve the worth of the bike. You will find that your insurance premium will be low in case you have an inexpensive bike. However, note that ou will have to pay a relatively higher premium if you possess a fancy bike.

  • Biker’s Age

The age of a biker is also considered when determining the cost of insurance. This is the reason that you are asked about your bike age at almost every insurance website in order to provide policy rates. A new bike will have a higher premium than an old bike because the former has a greater market value than the latter.

  • Insured Declared Value (IDV)

The bike's current market value is shown in the insured declared value. The IDV is established once a year since the depreciation of a motorcycle causes its value to decrease over time. The IDV is taken into account when determining premiums because the supplier of bike insurance is only obligated to provide reimbursement up to the worth of the bike.

  • The capacity of the Engine

The engine size of the bike has to be one of the major elements that affects the cost of motorcycle insurance rates. The engine's size is determined by the cubic capacity (cc). If your motorbike has an engine size of 75 cc or less, your premium will be reduced. On the other side, the cost of your bike insurance coverage would be higher if your bike has a 350 cc engine.

  • Devices to Prevent Theft

Installing security devices that have received certification from the Automotive Research Association of India might result in reductions from several insurance companies (ARAI). It suggests that your bike insurance rate will be lower if it has approved safety equipment because contemporary technology reduces the likelihood of bike theft and loss, lessening insurance companies' obligation to pay out compensation.

  • No Claim Bonus (NCB)

The No Claim Bonus is a reward given by insurers to policyholders who refrain from submitting claims for the duration of the policy year. If you drive safely and keep a claim-free record, you can boost this benefit by up to 50%. As a result, you will have to pay the insurance premium after deducting the NCB discount.

  • Modifications and Add-Ons

Add-on covers are extra insurance benefits that you can purchase to supplement the price of your current bike insurance policy. Zero depreciation, engine safety, roadside support, etc. are some examples. Your normal insurance policy's coverage is increased by these add-ons. These add-ons raise the cost of bike insurance.


When you choose motorcycle insurance coverage, please keep in mind the above factors. If you are aware of these factors, it will be easy for you to calculate the proper insurance rate for your bike. It will give you a cheap insurance policy, which will aid in keeping your bike safe.

Also Read: 

Best Two-Wheeler Insurance Plans Of 2022 In India

Suggestions for Improving Bicycle Efficiency


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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