7 Factors determining your bike insurance premium

Bike insurance is a very important type of insurance coverage that you need if you own a two-wheeler. There are many good two-wheeler insurance plans available in India these days. While every plan is good, not all plans may be of use to you. This is because the different plans have different covers and also carry a different price tag. But what determines the premium of a bike insurance plan? Let us find this out.

  1. Type of cover –
    There are two types of bike insurance plans available in India. They are the comprehensive cover and the third party liability cover. The third-party liability cover is a basic cover that only covers third party damages. It doesn’t offer coverage for damage to your own vehicle. It is a very cheap and affordable form of bike insurance. The comprehensive cover offers third party liability cover as well as cover for your own vehicle. Such a plan is more expensive simply because it offers higher coverage. So the type of bike plan you choose will have a determining effect on the bike insurance premium.
  2. Scope of cover –
    Some plans are plain vanilla and some have a higher number of in-built covers. The scope of coverage available under the bike insurance plan you choose will also determine the premium of the two-wheeler insurance policy. Read the premium wordings carefully to understand the scope of the cover and then choose your bike insurance policy accordingly.
  3. Addition of riders –
    There are many bike insurance riders available. Riders are add-on covers that you can buy along with the basic two-wheeler insurance policy. Riders increase the scope of the cover and also make your plan tailor-made for you. The common bike insurance riders include the roadside assistance rider, the engine cover rider, the personal accident rider, etc. Go over the clauses of each rider and understand the scope of cover. Then choose the riders that you feel would be of the best use to you. Please note that every rider will cost you extra money, so only choose the ones you need to keep the overall bike insurance cover affordable.
  4. Duration of policy –
    You can buy a bike cover for one year, or you can buy it for a longer duration of two or three years. A regular one year plan is cheaper as compared to a long term bike cover. However, the long term bike insurance plans prove to be more economical in the long run as they help you to beat inflation. So, choose the duration of the policy with a lot of care as that will determine the total amount of premium you pay for the next few years to come.
  5. Discounts applied –
    There are various discounts available when you look to buy a bike insurance plan. Among them, one of the most important discounts is the no claim bonus. The no-claim bonus (NCB) is a reward that you get for not making any claim. It gets deducted from the premium of the following year’s cover. Then, you can also get bike insurance discounts if you install some safety gadgets in your vehicle. When you do so, the bike becomes less vulnerable to thefts and damages and this reduces the risk. As a result, the insurance provider offers a discount. You also get a discount on the bike insurance premium if you are a member of an automobile club.
  6. Vehicle type –
    The vehicle type plays an important role in determining the premium of the policy. If the vehicle is new and it is an imported sports bike, the premium of the insurance cover will be much higher. If it is an India-made, pre-used bike, the policy will cost you a lot less. Therefore, the model and the make, as well as the age of the bike, prove to be important determinants of the two-wheeler insurance premium.
  7. Mode of purchase –
    And finally, the mode of purchase also determines the price of the insurance policy. If you buy an online bike insurance plan, the premium will be lower as compared to a similar plan bought online. This is because there is no brokerage in online bike insurance. Also, the administrative and processing fees are lower and that brings down the overall cost of the online bike insurance plans.


When you buy a bike insurance plan, you should be aware of the premium and also understand why that particular amount is charged to you. If you feel there is a discrepancy, try to look for a different two-wheeler insurance plan from a different insurance provider. Also, remember to compare bike insurance from different companies before you buy a plan. Doing so will help you to find out the best plan and that, in turn, will keep you and your vehicle adequately covered.