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5 ways your bike impacts its insurance premium

Team AckoDec 24, 2023

Most people are usually aware that their bike insurance premium is not fixed at the same rate every time they buy or renew the policy. In some cases, a bike owner may have to pay less than the previous year while sometimes they may have to pay more. But what is the cause of this fluctuation of numbers? The simple answer is different factors that affect your premium. In this article, we will focus on how your bike affects the insurance premium. Let’s get started.




5 bike-related factors that affect the insurance premium 

The following is a list of factors that predominantly affect your Comprehensive Bike Insurance Premium. 

1. The ex-showroom price

One of the major factors for calculating a bike insurance premium is its ex-showroom cost. Bikes like Harley Davidson cost more and are expensive to insure. Their unique features, especially the engine firing and aesthetics entice bike owners to purchase such bikes. All this increases the value of a bike and has a direct effect on the cost of its insurance premium. On the other hand, a simple scooter does not have a heavy price tag, and thus, its cost of insurance is comparatively low.

2. The year of manufacture

Just as you grow older with time, your bike also ages. In the automobile industry, the value of vehicles depreciates with time. This decrease in value will also slash the cost of your bike insurance policy. 

3. The bike’s engine capacity

The engine is deemed as the heart of a bike. The more you care for it, the more it will be in a healthy condition. When you buy a bike insurance policy, one of the key factors for calculating the premium amount will be the engine’s cubic capacity (cc). The cost of insuring bikes with higher cc will also be higher.

4. The approximate current market value

The bike’s value that you need to set while buying your policy is called the Insured Declared Value. It is more or less the current market price of the bike. Remember that a higher IDV will increase the cost of your policy and a lower IDV will decrease the claim amount in case of a total loss. Thus, set the right IDV each time you renew the policy.

5. The bike type and model

The premium for every model of a two-wheeler will vary just because different bikes have different specifications. This is why similar bike models may still have different insurance costs. 

For example, if two friends have bikes, one owns Bajaj Passion, and the other owns Bajaj Pulsar. Both will have to pay different amounts for buying bike insurance policies. This is because both bikes will be priced at different amounts.

Why are online bike insurance policies cheaper?

Nowadays, people have made their smartphones an important part of their lives. Almost all tasks like researching, shopping, communicating, etc. are done with the help of the internet. Thus, insurance companies have also made policies available online.

Buying online 2 wheeler insurance has its set of benefits. First of all, when you buy online 2 wheeler insurance, you can easily compare various policies of a similar type for their features, services, and cost. Moreover, you can also get additional discounts while buying a policy online because insurers spend much less on operational costs related to online policies as compared to their offline counterparts. Thus, buying two-wheeler insurance online is more fruitful than buying the same policy offline.

In summary

A bike owner can buy a better bike insurance policy if he/she is aware of the factors that affect the premium. A simple way to know the approximate value of the premium before actually buying the policy is to use a bike insurance premium calculator. This is an online tool and can be found on any bike insurance website. 

You can tweak a few factors related to your bike and the insurance coverage to see how the changes affect the final outcome or cost of the policy. Remember, always compare bike insurance plans and use the premium calculator to know how much you need to pay for getting the bike insured. 

Frequently asked questions

Following is a list of common questions related to bike insurance and how the bike impacts its price. You can also send us your queries through email at [email protected] when in doubt.


If vintage models are so old, why is the insurance premium so high?

Vintage models are more expensive to insure simply because they cost more. Always remember, that the price of a vehicle plays a major role in deciding the insurance premium. The higher the price tag the higher will be the cost of insurance.

Does the type of bike insurance policy affect the premium?

Yes, types of bike insurance policies that offer more coverage will cost more as compared to policies with lesser coverage. For example, a Comprehensive Bike Insurance Policy costs more than the basic Third-party bike insurance policy as the former offers more coverage.

Why is IDV important in bike insurance premiums?

IDV stands for Insured Declared Value. This is the value of the bike that you need to set while buying a Comprehensive Bike Insurance Policy. IDV is important because the insurance company will pay this amount in case your bike suffers irreparable damage. The more the IDV, the higher will be the cost of insuring your bike.

Why do I have to pay a different insurance premium amount each year?

You pay a different sum of money to insure your bike each time because the bike’s value decreases with time. Moreover, in case of a claim, your premium might go up because if you have a Comprehensive Policy then your No Claim Bonus might drop to zero.

What are the cons of buying only a basic Third-party Liability policy?

If you buy only the basic Third-party Policy for your bike then you do not get coverage for the damages that your bike might suffer from. Thus, you must bear the cost of repairs as you don’t have a Comprehensive Insurance plan.

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