Bike Insurance Price Explained

In August 2018, there were flash floods in Kerala. The waters rose overnight, damaging property and claiming lives.

The people of Kerala were caught unaware, and most of them woke up to see the water levels rise around them fast. The fortunate ones saved their lives, but the property was left submerged in water for two whole days.

One among them affected was Devassy. When the water receded, he saw that his bike was damaged. He moved it to the garage for repairs, but despite his two-wheeler insurance, he had to bear the cost of repair himself.

Purchasing two-wheeler insurance is a great way to protect your bike against losses occurring from accidents and any other type of mishap. But which one should you pick, and more importantly, which plan helps you save the most money?

Continue reading to find the best bike insurance price in India.

Bike Insurance Details

Bike insurance is a contract between you and the insurance company, whereby the latter undertakes to bear the losses incurred while riding your bike. Let’s look at some important bike insurance details:

Third-Party Insurance

Third-party insurance covers injury or damage caused to a third person or property by your bike. It is mandatory to carry this policy, as per the Motor Vehicles Act of India, 1988.

Third-party insurance is cheap, but it can still cost you money: it covers neither your medical expenses nor the repairs to your motorcycle. Devassy had a third-party insurance cover for his bike, which is why he had to pay for the damages himself. 

Comprehensive Insurance Policy

A comprehensive insurance policy is a complete two-wheeler insurance policy. It is the more expensive option, but that’s only because it covers third-party claims as well as medical costs and bike repairs. 

Verghese, Devassy’s neighbor Verghese was also affected by the flash floods. He also moved his motorcycle to the garage. However, he could settle for the avail cashless repair of his bike because he had a comprehensive insurance policy. So, in this case, a comprehensive plan ended up being cheaper than the third-party cover.

Long-Term Two-Wheeler Insurance Plans

The Insurance Regulatory and Development Authority of India (IRDAI) based on supreme court judgment has asked allows companies to sell two-wheeler insurance plans for 2-35 years.

You can enjoy a higher protection period, according to your choice of tenure for the policy. IRDAI increases the third-party motor insurance rates annually, but your bike insurance policy will be unaffected by this.

The only drawback of long-term plans is that they are more expensive than the previously discussed policies.

Standalone Own Damage Plan

Your bike or any other two-wheeler may be damaged in an accident, fire, self-ignition damage, explosion, or natural and man-made calamities. A Standalone own damage plan covers and provides you with a cashless repair facility.

Nevertheless, you can avail of it only if you already have third-party insurance, valid for at least a year.

What Are the Factors that Determine the Bike Insurance Cost?

No two bikes can have a fixed amount as premium, even if they are of the same make and model. Some factors that determine the price of your bike insurance include:

1. Type of Policy

As we have seen, you can choose from two types of two-wheeler insurance.

• Third-Party Two-Wheeler Insurance: It is ‘must-have’ insurance as it is a punishable offense to ride a bike without a third-party cover in India. It’s cheaper as it covers only your bike-related third-party liability. 
• Comprehensive Two-Wheeler Insurance: It costs more but covers all expenses or losses incurred while riding your bike, including third-party losses.

2. Bike-Related Factors

The bike’s cubic capacity decides the price of insurance. The greater the cubic capacity, the higher the premium.

Other details that also influence the bike insurance cost include:

• Age
• The number of miles covered by the bike
• Make and model
• Fuel type
• The place of its registration

3. Rider’s Details

Devassy and his son, Biju, both ride the same make and model of bikes. They bought it at the same time, and the time of renewal of insurance too was simultaneous. However, Biju was quoted a higher price than Devassy.

If the bikes are of the same age, make, and model, why does the son pay a higher premium? It’s because Devassy is 56 and has considerable experience riding a bike, whereas Biju is 21 and just started using a motorcycle.

The rider’s age, experience, gender, and riding record can play a vital role in determining the bike insurance premium.

4. Market Value

Verghese rides a Royal Enfield, and his wife Hema rides a Yamaha Scooty. Verghese pays a higher premium because the market value of his bike is higher than Hema’s.

The insurance premium is calculated based on market value. In the case of older vehicles, the present resale value and condition determine the premium.

5. Add-Ons

You can opt for riders or add-on to your regular bike insurance policy, but it will add to the bike insurance cost. Therefore, you should take only those that are necessary. 

Some popular add-ons include:

• Zero-depreciation cover
• Personal accident cover
• Medical cover
• Cashless hospitalization cover

Note that the insurance policy does not cover any modifications done to the bike.

6. Renewal After Policy Expires 

Bike insurance is ideally renewed a week before its expiry. If you fail in doing it, you will lose the discounts that the company gives you. That will make the motorcycle insurance cost you more.

How to Get the Cheapest Insurance for Your Bike

Are you looking for the cheapest insurance premium for your two-wheeler in India? Try these effective tips:

• Choose the suitable Insured Declared Value (IDV) or current value of your bike.
• Opt for the required add-ons only.
• Install an anti-theft alarm system on your bike.
• Eliminate agents and their commission by buying bike insurance online.
• Decrease the number of claims.
• Raise voluntary deductibles.
• Study your insurance plan and know what you are paying for to avoid unnecessary charges.

The Final Word

To get the cheapest bike insurance price, you need to invest at the right time. Know your needs and what your policy offers you to bring down the rates.

A two-wheeler insurance policy proves to be useful in several circumstances like theft, accident cover, damage, and third-party liability. So always be sure to renew your insurance on time to save any unnecessary struggle and anxiety.