Frequently Asked Questions on Two-Wheeler Insurance Premiums

Buying an insurance policy is mandatory when you purchase a bike. Be it a new bike fresh-off the assembly line or a pre-owned one, the two-wheeler insurance is something that must not be overlooked. Two main reasons to not ignore the two-wheeler insurance policy is the legal requirement and safety from unexpected accidents and damages.

Two-Wheeler Insurance Premiums

With a plethora of options to choose from, it can get be perplexing to shortlist the best two wheeler insurance policy for your bike. But fret-not! This article compiles some of the commonly asked questions around two-wheeler insurance premiums that can help you in selecting a suitable and yet affordable insurance cover. Let’s have a look –

Are the premiums for all bikes same?

No, the two-wheeler insurance price differs based on the type of policy. There are two types of plans to choose from, third-party and comprehensive. While third-party premiums are standardised and defined by the regulator, Insurance Regulatory and Development Authority of India (IRDAI), premiums for comprehensive plans are determined by individual insurance companies based on the coverage offered. Some basic factors considered in determining premium for comprehensive policies are the make, model and variant of the vehicle followed by its engine capacity, age, Insured Declared Value (IDV) and the add-ons opted. Considering all these factors together help determine the twowheeler insurance price.

Does the bike’s age have an impact on the insurance premium?

Yes, the age of your bike impacts the insured declared value or as popularly known as the IDV. Since depreciation due to usage and passage of time impacts the IDV, this value goes on reducing as time passes. This in turn has an impact of the premium of an older bike when compared to a brand new one. But remember, the IDV is not the only factor that impacts the bike’s premium. Other factors in combination together determine its premium.

Do add-ons increase your bike insurance premium?

Yes, the add-ons do increase the premium of your policy. Since these are additional features added on to your existing bike insurance coverage, they increase the premium of the overall policy.

Do the charges vary for each different type of add-on?

The premium for every add-on differs. Since these add-ons have different purposes, the premiums charged for them also vary. These add-ons are available with standalone own-damage plans or comprehensive insurance policies.

Is it possible to reduce the insurance premium?

There are quite a few tips that help reducing the premium of your policy. Comparing the different available options and then selecting one based on your budget can help you primarily. Bike insurance calculator is a nifty too that can aid in comparing these policies and help in selecting a suitable insurance policy. Further, you can also take advantage of the no-claim bonus that starts at 20% and goes all the way up to 50%. Based on the consecutive claim-free years, it is available as a concession in your renewal premium. Further, to preserve this, you can avoid raising claim for minor repairs too.

While considering premium is necessary since it needs to fit your budget, it not the sole determinant for a suitable insurance policy. Remember to not base you purchase solely on the insurance premium but also consider other factors along with it.Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.


Natraj Studied bachelor's degree in finance and business from Telangana University, Nizamabad. A Writer based In India, He has a degree in Charted Accounts and has very knowledgeable in credit repair and Banking Sectors. So, I decided to start a blog and share my knowledge to the visitors.

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