Minus/plus icon
ResourcesExplore the full ACKO experience and make the most of your plan

Home / Two-wheeler Insurance / Articles / How does two-wheeler insurance vary with the cubic capacity (cc) of the bike?

How does two-wheeler insurance vary with the cubic capacity (cc) of the bike?

Team AckoJan 17, 2024

Some of the factors that may affect your bike insurance are age, location, model of the vehicle, claims history along with add-ons, and voluntary deductibles. While it may be tempting to reduce coverages to help lower your two-wheeler insurance premium, it is essential to know that there are other factors that may affect the insurance cost.

The Cubic Capacity (cc) or the engine capacity of the two-wheeler is a crucial factor in determining the insurance premium. Read ahead to know how the cubic capacity of your bike impacts the bike insurance premium.




What is the meaning of cubic capacity (cc) in bikes?

The cubic capacity of bikes is the maximum power output of the engine. The engine capacity is the volume of the chamber of the vehicle’s engine. Basically, the measurement in a cubic centimeter of the chamber or the cylinder is referred to as cubic capacity or cc. Higher the cc, the larger the power output. 

The cubic capacity is the primary factor in knowing how much power the engine produces in terms of horsepower, torque, and fuel consumption. Two-wheelers with lower engine capacity are cheaper to insure compared to higher engine capacity bikes. The cubic capacity of the bike is one of the main factors in determining the insurance premium.

The bike’s cubic capacity is also the primary factor for the Insurance Regulator and Development Authority of India (IRDAI) to determine the premium for the Third-party Liability Plan. When you insure your bike through ACKO, you have to enter all the details of the vehicle to calculate the bike insurance premium.

How does the CC of the bike’s engine affect the insurance premium?

Have you wondered why insurance premiums are different for different bikes? Many factors affect the insurance cost, and one of them is the cubic capacity of the bike engine. There are mainly two types of bike insurance plans - Third-party and Comprehensive.

How does the CC impact Third-party Insurance and Comprehensive Insurance?

The Third-party Liability Plan is the minimum requirement for all two-wheelers in India. It provides coverage against third-party injury or death of the third party or damages to their property.  The IRDAI determines the insurance premium for the Third party Two-wheeler Insurance Plan. The insurance industry regulator has defined different rates based on the engine capacity of the bike. Here are the slab rates for various cubic capacities.

Engine Capacity (cc) Third-party Insurance Price
Less than 75cc Rs. 482
Exceeding 75cc but less than 150cc Rs. 752
Exceeding 150cc but less than 350cc Rs. 1,366
Exceeding 350cc Rs. 2,804

Third-party insurance rates are standard across all insurance companies. For Comprehensive insurance rates, The difference in premiums of Comprehensive insurance is due to the rate difference in the Own Damage (OD) component. Additionally, based on the insurer’s risk assessment, premium rates of OD cover vary. Also, the Insured Declared Value (IDV) is another important factor in determining the rate.

While the premium of the Third-party plan is primarily based on the cubic capacity, the Comprehensive Bike Insurance Plan takes into account other factors as well. You can use ACKO’s online bike insurance premium calculator to determine the cost for different types of two-wheelers.

Other factors that impact the insurance premium

Apart from the engine capacity of the two-wheeler, other factors influence the cost of the insurance plan. Here are the different factors that affect the premium.

  • Geographical location: The premium is higher if you stay in a metropolitan city compared to tier-II cities or rural areas. The risk factor is higher in metropolitan areas as compared to the non-metro areas.

  • Year of manufacture: The insured amount is directly influenced by the age of the vehicle. Since the bike depreciates over time, the insured amount will reduce over time.

  • Voluntary/compulsory deductibles: Compulsory deductibles require you to pay a certain portion of the repair expenses from your pocket, while ACKO will pay the rest. With voluntary deductibles, you agree to pay more from your pocket for the repair costs. The higher the voluntary deductible, the lesser the premium; however, higher deductibles will require you to pay more from your pocket during claim settlement.

  • Make and model of the bike: The premium is higher for high-end/premium bikes, while the premium is lower for basic bikes. The premium is higher for luxury vehicles since the parts are expensive to replace or repair compared to low-end bikes.

  • Add-ons: Add-ons provide extra coverage for specific needs and increase the coverage of the primary plan. It protects you from incidents that are not covered by the basic plan in exchange for a premium.

  • No Claim Bonus (NCB): If you do not raise any claims during the policy period, you get a discount in the form of NCB. It can go up to 50% if you do not submit a claim for five consecutive years. Hence, the discount will impact the bike insurance premium.

  • Security installation: Installing anti-theft devices or other security features that reduce theft risk and lower the risk of damages, reduces the insurance premium.


A two-wheeler insurance policy is devised after taking into consideration various factors. One of the main factors is the cubic capacity of the bike. While bikes with lower cubic capacity (ranging from 100cc to 150cc) offer better fuel efficiency, bikes with high cubic capacity offer performance and power. As for the insurance premium, it is lower for bikes that are powered by lower cubic capacity engines and higher for luxury or higher cc bikes.

Hence, it is important to consider the bike’s cubic capacity, especially while insuring your motorcycle. To save more on premiums, it is essential to choose the right insurer, such as ACKO. ACKO premiums are lower as we follow a no-commission model and embrace a 100% paperless approach. This allows us to devise insurance plans at comparatively lower costs.

Frequently Asked Questions

Here are some of the commonly asked questions about the cubic capacity of the bike engine and its relationship with the bike insurance premium.

How is bike insurance premium calculated?


To calculate bike insurance premiums, you can use our premium calculator. You need to provide the registration number of your bike, model, and previous policy (if available) to insure your bike instantly with ACKO.

Which insurance is best for a new two-wheeler?


The Comprehensive Bike Insurance Plan is a combination of Third-party Liability Plan and Own Damage (OD) bike insurance and offers broader coverage. While the former provides coverage against third-party liabilities, the latter provides coverage against damages to your bike. Additionally, you have the option to purchase add-ons to increase the insurance coverage.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. Explore More:


Want to post any comments?


Bike insurance prices starting at just ₹457*

Buy or Renew Two Wheeler Insurance in 2 Minutes ⚡

Bike number

UID: 5676 | *T&Cs apply

Looking to insure brand new bike?

Zero commissions, big savings

UID: 5676 | *T&Cs apply

quote icon

Get Quote

quote icon