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Which Is Best: Single Or Multi-year Bike Insurance?

Published On Feb 03, 2022, Updated On Feb 03, 2023

Which Is Best: Single Or Multi-year Bike Insurance?

In India, it is mandatory by law to purchase a bike insurance policy up to third-party insurance. Therefore, there are many motor insurance companies providing two types of two-wheeler insurance: single-year insurance and multi-year insurance. 

A single-year policy provides coverage only for a year. However, a multi-year policy keeps your vehicle insured for more than a year. You can compare and choose from both of them as per your unique requirements. By elaborating on their differences, we will help you choose between a single-year policy and a multi-year policy through this article. 

Which Is Best: Single Or Multi-year Bike Insurance?

Meaning And Benefits Of Single-Year Policy 

The duration of a single-year policy is limited to only a year. Therefore, you have to regularly renew your plan after it expires. In this fast-moving world, sometimes we may forget the expiry date, which may lead to a lapse in the policy. However, single-year insurance is of great benefit in case you want to switch from one bike insurance company to another. Listed below are some of the benefits of a single-year plan. 

  • Less Initial Investment: 

Unlike a multi-year policy, where you pay a collective sum of 2-3 years, a single-year plan is less expensive because you are paying only for a year. 

  • Revise Insured Declared Value (IDV):

If you have bought a single-year policy, you can adjust your IDV each year and optimize the value of your car. However, in the case of a multi-year plan, you can only set your vehicle's IDV once at the time of policy purchase. 

  • Flexibility to Customize Policy: 

With a single-year insurance policy, you can tailor your bike insurance policy every year. You can either include or remove the add-ons such as zero depreciation cover, NCB protection, and much more from your standard policy. 

  • Easily Transferable: 

When you purchase a multi-year policy, you commit to that insurer for the entire duration of the policy. On the other hand, with single-year insurance, you can switch to a different insurer the next year if you are unhappy with your insurer's services or feel that their network is insufficient.

Meaning And Benefits Of Multi-Year Policy 

In multi-year insurance, a vehicle is insured for a longer duration, say 5–6 years. This means you don’t have to worry about renewing your plan every year. Moreover, IRDAI has made it compulsory for every bike owner to purchase a 5-year bike insurance policy. When compared to a single-year policy, the cost of bike insurance for multi-year policies is higher because the coverage is provided for many years. Listed below are some of the benefits of a multi-year policy. 

  • Cost-Effective: 

In the case of a multi-year plan, you purchase a bike insurance policy for the entire policy duration at the current market value. However, in the case of single-year insurance, you will be required to pay the new rates each year when renewing your two-wheeler insurance.

  • Higher NCB Discount:

When you purchase multi-year insurance, you can reduce the cost of your new plan by availing of a no-claim bonus for the entire duration. 

  • Inexpensive Add-ons: 

A multi-year insurance policy provides a very significant discount on a variety of add-ons, such as engine and transmission protection, zero depreciation cover, roadside assistance, and much more. Therefore, you can enhance the protection of your policy cost-effectively. 

  • Protection against Policy Termination:

You won't have to worry about renewing your bike insurance on a yearly basis if you choose a multi-year policy. As a result, your policy's protection lasts longer without lapse. 

Which Is Better—Multi-year Insurance Or Single-year Insurance? 

According to IRDAI, it is mandatory to buy a 5-year bike insurance policy for all registered two-wheelers. Therefore, a multi-year policy is a must. Single-year policies allow you to switch insurance providers, whereas multi-year plans provide cost advantages and hassle-free renewal every year. With an understanding of the perks and disadvantages of single-year insurance and multi-year policies, it can be concluded that both of them are unique and advantageous. You can choose from both of them according to your requirements. 

Moreover, you can use a two-wheeler insurance premium calculator, a free tool provided by InsuranceDekho, to compare the variations in premiums for various plans.


While purchasing a motor insurance policy, it is crucial to consider certain factors, especially your budget. Therefore, before making the decision to purchase any insurance plan, compare the advantages and disadvantages of both types of insurance plans. There are 25 motor insurance companies in India. You can compare the bike insurance policies on the basis of claim settlement ratio, add-ons, no claim bonus, and most importantly, check the consumer reviews of the insurance providers.

Also read: Reasons You Should Consider Switching Your Car Insurance Company

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