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Variables That Affect Your Two Wheeler Insurance Premium

Author: Radha Lakshmi
by Radha Lakshmi
Posted: Nov 21, 2019
wheeler insurance

A two-wheeler insurance policy is an agreement between an insurance company and an individual. In this particular policy, the insurer covers damages caused to the two-wheeler in case of any natural disaster, theft or accidents.

A bike insurance plan secures a policyholder against any liabilities that might arise from injuries to the rider as well as third parties. It all depends on the kind of policy you purchase. If you wish to purchase the cheapest two-wheeler insurance policy that gives adequate coverage, you must compare plans between insurers.

  • How much do two-wheeler insurance policies cost?

Two-wheeler insurance is based on factors such as age, location, model of the bike, choice of coverage, driving history and claim history. If you want the cheapest two wheeler insuraninsurance policy, go for third-party liability cover. The third-party damages will be covered by the insurance policy and you won’t be compensated for own damage.

However, a comprehensive two wheeler insurance policy will give the best coverage. Any kind of possible risks on the road, injuries as well as death will be covered by the policy. The policyholders must assess their insurance needs. They should opt for the policy that suits their needs.

  • Insurance premium

Given below are certain factors on which the two-wheeler insurance premium is based:

1. Deductibles

The premium will be low if the deductible is high. The out pocket expenses will increase if the repair/replacement cost of the vehicle is high. Therefore, a judicious decision about the deductible must be made.

2. IDV of the Vehicle

Model of the vehicle influences the insurance premium as the Insured Declared Value (IDV) varies. For instance, you might pay a high insurance premium for sports vehicles if the IDV of the sports bike is high. Whereas, the premium for inexpensive bikes is low.

Few other factors, which influence the premiums, are as follows:

3. Coverage

The policy you opt for also determines the premium you would have to pay. You can opt for third party car insurance or a comprehensive cover and evaluate quotes using the online two wheeler insurance premium calculator.

4. No Claim Bonus

Not making any claims during the policy term comes with a benefit called the No Claim Bonus. The higher the accumulated NCB percentage, the more reduction in your premium during your two wheeler insurance renewal.

5. Add-On Covers

Several add-ons are offered by competing insurance providers to attract customers. Choose only the ones that are essential to avoid paying higher premium rates.

Year and Manufacture - Along with the age of the vehicle, the rate of depreciation also increases. The IDV (Insured Declared Value) will be low if you buy insurance for an old vehicle. An IDV is the current market value of the vehicle. Therefore, a lower insurance premium is attracted by the insurance plan.

A two wheeler insurance premium calculator is used to figure out the quotes of different insurance companies in India.


Various factors formulate the motorcycle insurance premium. If you wish to reduce your expense, choose the right amount of vehicle insurance coverage. To protect your vehicle, buy an optimum insurance plan. Don’t be underinsured nor over insured. For availing the best insurance coverage, research and analyze before buying.
About the Author

A mother of 2 lovely kids. Digital Marketer by profession and a blogger by passion! Here to inspire and motivate people with my writing.

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Author: Radha Lakshmi
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Radha Lakshmi

Member since: Mar 03, 2019
Published articles: 27

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