How much is bike insurance? Cost of bike insurance

Two-Wheeler Insurance

When you buy a two-wheeler insurance, the premium charged by the insurer depends on various factors such as age of buyer, make and model of bike, coverage opted for, location, bike driving and claim history of the buyer etc.

The obligatory and the most cheap bike insurance plan is the third-party liability insurance. This plan covers the insured for the damages and liabilities caused to the third-party person and property. However, it doesn’t cover for damages caused to your own vehicle. Comprehensive policy, on the other hand, is one that allows both third-party and your own damages in the most comprehensive way. So, the vehicle owner should buy the most useful and cost-effective policy after making proper comparisons and assessing the needs.

6 Basic Points Why you Need a Bike Insurance

1. Because it is mandatory
2. It covers many important aspects like natural disasters such as flood, earthquake, fire etc.
3. It covers against damages done by men in the form of riots, terrorism, theft etc.
4. Bike insurance secure the policyholder against various damages that might turn up on the road while riding the bike
5. You gain greater benefits and security as compared to the premium charged by the insurer
6. Premium charges are also decided by the insurer depending on various risk factors.

Two-wheelers & Insurance premium charges

To  understand the approximate cost of bike insurance and how they are calculated based on different variables like make and model of vehicle and engine capacity, we are providing a chart below.  It contains the top two-wheelers in the market at present and their average insurance cost. However, you must note that other variables like mileage, maintenance, age of bike owner etc. also affect the insurance premium price of a bike.

Below is a table showing different bikes and their insurance premiums:

Two- wheeler type	Engine Power	Price of bike	Premium (avg.)
Honda Activa	110cc	INR 65,000/	Between INR 1350 to INR 1750
Bajaj Avenger	220cc	INR 1,00,000/	Between INR 1800 to INR 2000
Hero Honda Splendor	125cc	INR 70,000/	Between INR 1300 to INR 1800
TVS Apache RTR	180cc	INR 90,000/	Between INR 1750 to INR 2300
Yamaha Fazer	149cc	INR. 1,70,000/	Between INR 1550 to INR 2200

Let us check the various variables that affect a bike insurance premium in detail below.

Factors that Affect cost of bike insurance

• Make and Model of bike – As already discussed, premium of bike insurance depends on the model and make of the bike.  For instance, sports vehicle or high end vehicles or bikes are charged with greater premium than the normal ones
• Deductible amount charged –  Deductible is another factor that affects the premium. If you keep the deductible as high, you may pay a low premium. However, in this case the repair cost will be more from your pocket. So, it important to consider this aspect before setting the deductible amount
• Coverage opted for – Likewise, if you avail the minimum coverage of a third-party liability policy, the premium will be less costly as compared to availing comprehensive coverage, which cover third-party as well as your own damages
• Safety devices or anti theft devices fitted in the bike – Use of safety gear in your bike like anti-theft devices etc., also allow low cost of bike insurance as it lowers the premium of the policy
• Age of the bike owner/insured –  Insurance providers are of the view that the younger the rider, the higher the risk. So, they levy greater insurance amount for young bike owners as compared to the matured people
• Age and condition of vehicle – Age and condition of vehicle is also important in terms of deciding the premium of your bike insurance
• Availability of NCB or No Claim Bonus – If you have managed to gain some NCB discounts on your policy, it can be used to lower the premium of your bike at the time of bike insurance renewal. NCB is offered by insurers if the policyholder doesn’t claim any insurance amount in a particular policy year. It supports lowering your bike insurance renewal cost.

Let us now consider some tips that can be used by policyholders to reduce their two-wheeler insurance policy.

Tips to Reduce Cost of bike insurance

• The smaller the bike the lighter the premium load – If a compact bike with low engine capacity can fulfill your requirements, go for it to avail lower premium. Since fancy bikes with greater engine capacity will definitely have higher premium amount levied on the insured
• Do not consider any bike modification – Avoid modifications in your bike if you do not want to pay extra amount of premium since modified bikes are generally more expensive as they have high cost of repair
• Pay premium in lump sum – If the insurance premium is paid in lump sum amount, the insurer might allow a certain discount on it. Also, buying long term bike insurance policies of 2-3 years or beyond, you may have some discount on the premium
• Do not go for additional riders –  If it is not required, avoid getting any additional riders or add-on policies on your bike insurance. This way  you can lower the cost of bike insurance renewal to a certain extent.