How Is Bike Insurance Premium Calculated In India?


Published on February 21st, 2019

For some, it may be a necessity to buy a bike, for some it is passion, but for everyone who buys a bike, it is an important event. Buying a vehicle, especially a bike gives you convenience.

The market is flooded with numerous choices; there are endless bike models from different brands and based on every customer’s demand, different bikes are designed. There are basic models, and then there are sports bikes, cruiser and so on. The end goal is to keep customers happy by meeting their requirements and desires and to establish the brand name.

Buying a sports bike especially involves a lot of money and pricing such high-end bikes won’t be a cake walk. It would involve considering a lot of parameters.

However, it is made easier with installments, bike loans and other financial offers, which customers can use to buy the bike they wish for.


After purchasing the bike, the next mandatory step is to buy a bike insurance policy. This covers you from any physical damages, as well as any financial loss – both man-made and natural disasters.

Under any unforeseen destructive circumstances, it’s always better if you keep a safety cover, in the form of car insurance policy – third party liability insurance cover or comprehensive insurance plan.

The benefit of third-party liability insurance is that it protects you from damages caused by your vehicle to another vehicle/ person who is not insured.

In such cases, it will save you off the extra time and money, and the legal troubles it may impose on you. This is a mandatory clause in your bike insurance policy, to cover the policyholder or bike driver if both are same.

1. Calculating Bike Insurance Premium


However, coming down to calculating the premium amount per annum which the customer pays to the insurer, depends on a number of other factors.

This is the formula that goes into calculating your bike insurance premium. It is a sum of your own damage premium – (No Claim Bonus + Discount if any) + the premium amount. If you check it online, this is the formula that is used to give you a bike insurance premium quote.


2. Online Bike Insurance Calculator

Bike insurance premium calculator is an online tool that allows you to calculate the cost of premium that you are required to pay every year to avail the policy benefits.

You can easily compare different two-wheeler insurance quotes from different motor insurance companies.
By making alterations in your requirement, you can analyze the cost for different plans.

Using a bike insurance calculator, you can eliminate the cost of the agents and save both time and efforts.

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3. Issues Which Can Influence Your Bike Insurance Premiums

Before the premium amount is decided, it is influenced by a number of below-mentioned factors –

  • The bike model, year of manufacturing and the type of bike – whether it’s a basic bike or a cruiser or a sports bike.
  • All these factors influence your bike insurance premium. The newer the bike, the lesser is the premium and vice versa.
  • The premium amount will be less if the cubic or engine capacity of your bike is less
  • Insured Declared value or the current value of the bike is an important deciding factor
  • If you have put on some extra bike accessories, then you would need to pay an extra premium
  • If you have other safety devices installed in your bike, then you will have to pay a lesser premium amount.
  • Your age is also an important factor. Experienced drivers are required to pay a lesser premium as compared to beginners.
  • Age of the bike and its depreciation value also influence the cost of the premium. The rate of depreciation on old bikes is more as compared to new bikes and for this reason, your bike’s age also plays an important role in determining the cost of the premium.
  • No-claim Discount and Deductibles( if any)
  • Add-on covers such as coverage for bike accessories, coverage for co-passengers, and personal accident cover.
  • The area or the city from which the bike is purchased also makes the difference. If your bike is registered under Zone A cities such as Pune, Delhi, Chennai, Hyderabad, Bengaluru, Ahmedabad, Mumbai, and Kolkata will be higher as compared to the rest of the cities that fall under Zone B.

Your two-wheeler insurance premium will be derived on the basis of the choices that you make.


4. Benefits Of Bike Insurance Calculator

  • You don’t have to visit the insurer’s office. All you need to do is go to the insurer’s site and select the two wheelers insurance online calculator option.
  • Calculating insurance premium online saves your money as it is a free tool.
  • You can determine the best policy for yourself by comparing different quotes.
  • It is a quick and hassle-free process that requires minimal paperwork.
  • By selection different variables you can witness how the premium changes based on the choices made by you. Which otherwise is not possible to do offline.
  • With the help of an online premium calculator, you can decide the policy offering your maximum coverage at the minimum cost of the premium.

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If you are a bike owner, you must be aware that buying bike insurance is imperative and how it is calculated, is even more important to know. Do not forget to have a third party liability insurance cover when buying your bike insurance policy. Make sure you know about your bike, its value, and features to avoid paying any extra money on your bike insurance premium.