A GPS tracker could help bring down your bike insurance premium. A bike tracker lowers the chances of a stolen two-wheeler going unidentified, and insurers reward this reduction in theft risk with a discount.
In practice you benefit this through the anti-theft device discount: if you use an anti-theft device that has been sanctioned/released by a recognised authority such as the Automotive Research Association of India (ARAI), the insurer can reduce the own-damage (OD) portion only of your premium.
How much can you save on bike insurance premium with a GPS Tracker?
Beneath the traditional anti-theft device rule, one gets a discount of 2.5% of self damage premium, with a maximum cap of Rs 500 per year. The saving in rupees from this on a standard two-wheeler is minor due to its limited application and capped benefit, which is only on self damage (OD) insurance.
You need an estimate of the cost of such a device or you can consult a representative of an insurance company.
| Item | Amount |
|---|---|
| Own-damage premium | Rs 1,200 |
| Anti-theft discount rate | 2.5% |
| Discount before cap | Rs 30 |
| Discount cap | Rs 500 |
| Discount applied | Rs 30 |
A theft-detection device helps save Rs 30 on the premium for that year. The Rs 500 cap is only applicable when the premium on one's own damages is very high (above Rs 20, 000) which is quite unlikely for a standard two-wheeler. Most bikes get a few tens of rupees to hundred rupees discount on their premium if they have anti-theft systems.
Saving on the premium is not sufficient to justify the cost of the device since the device is much costlier than the amount you can save. The real money saver happens through recovery, since it allows the customer to avoid having to write off the asset altogether by giving a claim and thus losing your vehicle.
The discount applies to own-damage cover only
A GPS tracker has no discount effect on a bike policy that only covers third parties because premium rates for third party bike insurance policies are fixed by IRDAI and cannot be lowered by anti-theft devices. You must have comprehensive only-damage or separate own-damage insurance to get the discount.
What requirements must a GPS tracker meet for a bike insurance discount?
You need to have a theft prevention device that also registers in a certain way to be eligible for the discount. Insurance companies do not just automatically give the discount because you have a tracker.
Approved device: The anti-theft device should be approved or certified by a recognised body such as ARAI. A random aftermarket tracker without certification may not be accepted.
Declared and inspected: You usually have to declare the device to the insurer and, in many cases, have the bike inspected so the device can be recorded on the policy.
Endorsed on the policy: To be eligible for the discount, the bike security device has to be included in your motorbike insurance policy, and not simply installed on the bike.
Because approval and declaration rules vary between insurers, confirm with your specific insurer whether a GPS tracker (as opposed to an alarm or a mechanical immobiliser) qualifies for their anti-theft discount before you buy the device.
How do you claim the bike insurance discount?
Check with your insurer
Ask whether your GPS tracker or anti-theft device qualifies for the anti-theft discount and what certification they need.
Fit an approved device
Install an anti-theft device that is approved by a recognised authority such as ARAI.
Declare and get it inspected
Notify the insurance company, provide the device certificate, and get the bicycle inspected, if need be.
Get it endorsed in the policy
Make sure that the device gets registered in the policy schedule to avail the discount on your own damage premium.
Beyond the bike insurance discount, what else does a GPS tracker do?
The other benefit of a GPS tracker on a two-wheeler besides the discounted premium, are theft tracking and recovery.
Instant location: You know where your bike is at any time.
Faster recovery: A bike marked with tracker can get traced, preventing complete theft.
Claim process made easy: If something was stolen, a GPS device allows the law enforcement and insurance companies to know exact location and get all the evidence needed.
Protection against theft: A tracker not only can give an instant alert in case of bike movements also will allow you to set area boundaries so that only you can ride your bike without causing alarm.
You are not only looking after saving premium but also considering cost of theft which in most cases it surpasses insurance discount. It is advisable not to make decision based only on premium saving but rather on the degree of protection against theft.
Key takeaways
Adding a GPS tracker to your bike is actually a way of cutting down on the bike insurance premium by availing the discount on the anti-theft device on the own-damage part only.
Under the conventional method the discount is equal to a quarter of one percent of the own-damage premium amount and the maximum of this Rs 500 per annum is not exceeded.
Considering the fact that in most cases the two-wheelers will not be able to benefit much from this rupee savings, often limited to just few tens of rupees a year. The reason is that OD premium has to be affected only.
Third-party premiums are IRDAI regulated and therefore anti-theft devices are unable to bring down these to any extent.
In general a tracker has to be certified by a recognised body such as ARAI, declared as being anti-theft with insurer and the device endorsement should be there for it to be considered.
A tracker will greatly add to your chances of recovering the vehicle in case of theft thereby preventing total loss claim. So the bigger advantage of a tracker is theft recovery.
Frequently asked questions
No. You usually have to inform the insurer regarding the device, get a certificate and the device must be endorsed on your insurance policy. Only after that, you will be eligible for a discount on the own damage portion of your premium.
No. Third-party premiums are set by IRDAI based on engine capacity and cannot be reduced by anti-theft devices. The discount applies only to the own-damage part of a comprehensive or standalone OD policy.
It doesn't have to be. The majority of the time, car insurance companies expect that the insurance claim or theft report should be a device that was approved or certified by an acknowledged or recognized entity like ARAI.
No. Just the saving is not sufficient to even pay for the tracker itself. Normally, insurance companies provide discounts of only 2.5% to 5% on the OD premium in case of the installation of an ARAI Approved Anti-theft device.
About the authors
Nikhila PS
Written by · Senior Content EditorNikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Rekhit Singh Kaushal
Reviewed by · Senior Director - Motor UnderwritingRekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
