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The Impact of Your Location on Bike Insurance Premiums: How to Save Money

Published On Jul 16, 2023, Updated On Aug 23, 2023

The Impact of Your Location on Bike Insurance Premiums: How to Save Money

Bike insurance is a legal requirement according to the Motor Vehicles Act. But it is also financially beneficial under unfortunate circumstances; you can pay the predictable premium, and the company will pay you a sum when needed. The insurance premium depends on the coverage plan, bike specifications, and your driving history. But how these factors affect may depend on the location. Read on the understand how location affects the bike insurance premium and how to save money.

Why does location affect the bike insurance premium?

Bike insurance premiums may vary due to location change because of the following reasons:

  • Traffic Situations: The probability of an accident depends on the number of cars on the road. A traffic-dense area like a metro city would attract higher insurance premiums than a rural area. The reason is that you are more likely to hit a car in regions with dense traffic; the higher the probability of accidents, the higher your insurance premiums will be. 
  • Travel Distance: Location can also alter your driving distance. For example, consider that you have to drive ten kilometres to work. This distance could be different in a different place; you may need to travel longer to reach work. Here, the higher probability of accidents is due to the increased driving hours. You are more likely to get into accidents if you drive more hours. 
  • Crime Rate: Some insurance plans also cover theft. But this means your insurance premium calculator will depend on how likely your car can get stolen. A locality with higher car theft will have a higher probability of that; therefore, your insurance premium will be higher. 
  • Local Regulations: The insurance premium might also depend on the regulations of the city or the state. Insurance companies must comply with these regulations and fix your insurance premium accordingly. 

The Impact of Your Location on Bike Insurance Premiums: How to Save Money

How to save money if you have to move to a different location?

Now you know that the bike insurance premiums can change if you move to a different location. And if the reason for relocation is a new job, the only way to reduce premiums is by choosing a house close to your workplace. However, if you have several location choices, you can pick one to minimize the insurance premiums. For example, choose a place with

  • Low crime rate
  • Least traffic flow
  • Least regulatory charges

Other ways to reduce bike insurance cost

Follow the tips below to reduce the bike insurance cost or increase the sum insured:

  • Choose the appropriate bike which has an affordable insurance premium. An expensive bike will attract a higher annual premium because its service charges may be hefty.
  • Try to get a no-claim bonus by avoiding the claim for more minor repairs. Usually, insurance companies offer an increase in the sum insured if you had no insurance claim in the previous year in the form of a no-claim bonus.
  • Purchase several types of insurance from the same company. Insurance companies might provide your bundles for that; for example, you might get health insurance and accident coverage in the same plan. 
  • Use anti-theft devices to reduce the cost of the premium. Insurance companies like anti-theft devices on the client’s bikes, reducing the chances of theft. Therefore, they would be happy to give you theft coverage at a lower cost.

In conclusion, the premiums for motor insurance differ based on where you are. The reason may be dense traffic, high crime rate, varied regulatory charges, or your travel distance. If you have options, you can pick a location with preferable factors. Otherwise, the only way to reduce the bike insurance renewal premium is to choose housing close to your work. 


  • What should you know before you relocate your bike?

Before you relocate:

  1. Make sure you notify the insurance company.
  2. Check if you need to upgrade your coverage.
  3. Research for other coverage plans
  4. Calculate the premium required for the new location.
  5. Take advantage of add-ons or covers, but be responsible.
  6. Learn about re-registration 
  • Why should you notify the insurance company before moving to a new place?

You must inform the insurance company, as the premiums depend on the location. Thus, you would be violating the terms of the agreement of the bike insurance if you didn’t. They will also clear your doubts regarding the following:

  1. Usability of your insurance plan in the new location
  2. Documents required to re-register
  3. Transferability of insurance
  • Should you upgrade your insurance while moving to a different location?

If you move to a busy city, consider upgrading your bike insurance. Dense traffic increases the probability of accidents; you can expect bumps and scratches more frequently. Therefore, it would be prudent to purchase a better bike insurance plan. A comprehensive plan may also be worth considering if the new location has other hazards, including theft and natural disasters.

  • Why should you use add-ons?

Sometimes, your insurance plan may not cover your needs. And the one that covers your needs has features you don’t require. Under that circumstance, add-ons may be helpful. They add extra coverage to your existing plan; for example, your insurance plan may not cover damages due to a flood. But you live in a flood-prone area. Then, an engine protection add-on can help you cover the cost when your engine fails.

  • Can you insure your car and motorbike in a single plan?

You can insure all your automobiles under a single insurance plan. They are multi-floater plans; they have features similar to a standard insurance plan, but the insurance premiums would be high. 


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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