Does two-wheeler insurance go down as your bike gets older?

Owning an old two-wheeler can have its advantages, from nostalgic value to being an able commuter in urban areas. It is also a potential cost saver since you don’t have to worry about investing in a new bike. While many might prefer to upgrade their two-wheeler to a new vehicle, several of them want to hold on to that nostalgic value.

Whether it is a workhorse or a nostalgic value, you need to insure your bike not just for legal purposes but also to protect yourself financially against unforeseen damages or losses to your bike. As your vehicle gets older, the insurance cost decreases accordingly. So, why does bike insurance go down as your two-wheeler gets older? We answer this question through this article and the factors that impact the insurance premium for older bikes.

Why is it important to insure an old bike?

You need to buy bike insurance for your old two-wheeler to protect it against the risk of:

• Damage due to an accident

• Vehicle theft

• Damage due to fire, natural or man-made calamities

• Liability due to damage to any third-party property caused by your bike

• Liability due to bodily injury or death of any third party caused by your bike

• Liability due to your accident that may result in death or bodily injuries while riding your bike through the mandatory Personal Accident cover (PA).

What goes into calculating insurance for an older two-wheeler?

The cost of insurance for old bikes and scooters can vary, depending on many factors. Here are the factors that have the most significant impact on insurance rates for Comprehensive insurance.

• Insurance provider

• The engine capacity of the two-wheeler

• Insured Declared Value (IDV)

• Type of insurance coverage

• Year of manufacture

• Location

• Model

• Any accumulated No Claim Bonus (NCB)

These parameters are the primary factors to determine the insurance cost for older two-wheelers. Additionally, different insurers calculate these factors differently. Insurers such as ACKO, a digital-first insurance company, follows a direct-to-customer model via a 100% online platform.  Hence, there are no agent commissions, and the operating costs are lower. The savings are passed on as wider coverage and affordable insurance plans for older bikes.

Why does bike insurance cost go down as your bike gets older?

As you read in the above section, the main factor determining the insurance cost of any vehicle, be it old or new, is the bike’s value. As the bike gets older, the market value of the vehicle also decreases. This is because of the regular wear and tear of parts of the bike. The process of regular wear and tear due to time is called Depreciation. The higher the depreciation, the lower the bike’s value. 

The insurance term for a bike’s value is called Insured Declared Value (IDV). When your bike is damaged beyond repair or is stolen, you get the IDV as compensation after considering the depreciation and required deductibles. Therefore, the older the bike or scooter, the lower the insurance cost. Additionally, the cost may reduce even further if you have earned a No Claim Bonus (NCB) discount for not raising a claim during the policy period.

You can use ACKO’s bike insurance calculator to know the insurance rate for different types of two-wheelers, including old bikes.

Benefits of insuring an old bike

Be it an old or new bike, insuring a motorcycle or scooter is mandatory and essential. Here are the advantages of insuring your old two-wheeler.

• Safeguard against risks: A Comprehensive Bike Insurance Policy provides financial protection against damages to your old bike in case of an accident, fire, theft or due to man-made or natural calamities.

• Legal requirement: Whether it is an old or new two-wheeler, you must insure the bike with the Third-party Bike Insurance Policy since it is a legal requirement as per The Motor Vehicles Act, 1988.  If you are caught riding your old two-wheeler without valid vehicle insurance, you may be penalised as it is an offence.

• Coverage against third-party liabilities: With the mandatory Third-party Bike Insurance Policy, you get financial and legal coverage against third-party liabilities that include death or injury to the third party or in case of damages to their vehicle or property.

• Coverage against personal accident: When you insure your old bike, you also need to opt for the mandatory Personal Accident cover (PA). You will be protected against accidental injury or death while riding your two-wheeler.

Things to evaluate while insuring your old bike

Consider the following factors while insuring your old two-wheeler.

• Know about the insurer: Get to know more about the insurer’s services to make an informed decision. Check the ease of doing transactions with the insurer to avoid cumbersome procedures.

• Learn about the terms and conditions: Understand the inclusions and exclusions of the policy before you make the decision. Factors such as deductibles are vital while buying the right insurance policy for your old bike.

• Understand the insurance cost: The pricing of the policy is vital when you purchase an insurance plan for your old vehicle. Parameters such as IDV are crucial while determining the insurance cost. Digital insurers such as ACKO offer low-cost insurance plans for old vehicles. This is possible due to lower operating costs since it embraces the direct-to-customer model.

Frequently asked questions

Here are answers to some common queries of insuring old two-wheelers.

Can I insure a 15-year-old two-wheeler?

Yes, you can insure a 15-year-old bike or scooter. It is also mandatory to insure a two-wheeler at least with the Third-party Bike Insurance Plan. Apart from the third-party insurance, you get financial protection against damages or losses to your bike when you insure it with the Comprehensive Bike Insurance Plan.

How to get vehicle insurance for an old two-wheeler?

The steps to buy two-wheeler insurance for an old vehicle is easier with online insurance companies such as ACKO. You can visit our website or mobile app to provide your vehicle and previous policy details to insure your old bike instantly. There is no inspection involved while purchasing bike insurance with ACKO.

Insurance for my old bike has expired. Can I insure it now?

Yes, you can insure your vehicle even if the previous insurance policy has expired. You need to provide your bike details such as the registration number, year of manufacture and the model to insure your bike. Do not forget to renew the insurance 90 days prior to expiration to avail the No Claim Bonus discount.

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:

• Ideal Two Wheeler Insurance For City Riders

• Reasons to choose long-term Third-party Two-wheeler Insurance

• Scooter Insurance

• Old Bike Insurance

• Own Damage Two-wheeler Insurance Plan