Factors that are affecting bike insurance policy cost


28 Jun 2023

Factors Influencing Bike Insurance Policy Costs

In today's world, owning a bike comes with the responsibility of having proper insurance coverage. Two-wheeler insurance online safeguards you against financial losses arising from accidents, theft, or damage to your two-wheeler. However, the cost of a bike insurance policy can vary significantly based on several factors. We aim to provide a concise overview and understand the key factors that influence the cost of a bike insurance policy.

What are the key factors that affect bike insurance policy cost?

When it comes to insuring your bike, several factors come into play that can affect the two-wheeler insurance cost. Here are some key factors mentioned below:

  1. Bike's make, model and age

The make of your bike refers to the manufacturer or brand. We often consider the reputation and reliability of the bike’s make when determining premiums. Bikes from reputable manufacturers with a history of safety and performance may have lower insurance costs. The specific model of your bike plays a significant role in insurance pricing. Generally, old bikes tend to have low insurance premiums as they are usually less expensive to repair or replace. However, extremely old bikes may face challenges in finding comprehensive coverage and their premiums may differ based on factors like the availability of spare parts which significantly impact the price of bike insurance premiums. Expensive and high-end bikes typically incur higher premiums due to their increased susceptibility to theft and damage. Older bikes may also result in higher premiums due to higher maintenance costs and increased risk of breakdowns.

  1. Cubic capacity (CC) of the bike

The engine displacement or CC of your bike plays a vital role in determining the insurance premium. We consider the cubic capacity of a bike’s engine as an important factor while determining the premium. Bikes with higher CC generally attract higher premiums as they have the potential for higher speeds, increasing the risk of accidents and damage.

  1. Geographical location

Your location of residence or primary usage affects the insurance cost. Areas with higher instances of accidents, theft, or vandalism typically have higher premiums. Urban areas often incur higher premiums compared to rural areas due to higher traffic density and crime rates.

  1. Insurance coverage type

The type of insurance coverage you choose comprehensive or third-party impacts the policy cost. Comprehensive coverage, which includes both third-party liability and own-damage protection, is more expensive than third-party coverage alone. The extent of coverage directly influences the premium.

  1. No claim bonus (NCB)

No Claim Bonus is a reward provided to policyholders for claim-free years. It helps reduce the premium for subsequent years. A higher NCB percentage leads to a lower premium. However, if you file a claim, your NCB may be affected, resulting in a higher premium during policy renewal.

  1. Personal details

Personal factors such as age, gender, and occupation can also influence the insurance premium. Younger riders or individuals engaged in riskier occupations might have higher premiums due to perceived higher risks associated with them.

  1. Add-on covers:

Opting for add-on covers like zero depreciation, roadside assistance, and engine protection can enhance the coverage of your bike insurance policy. However, selecting add-ons will increase the premium accordingly.

NCB and its importance in Two Wheeler Insurance are vital. before the line starts "No Claim Bonus is a reward provided to policyholders for claim-free years. It helps reduce the premium for subsequent years".


While purchasing a bike insurance policy, it is important to consider these factors as this influence you to make an informed decision while choosing an insurance plan that provides sufficient cover at an affordable rate. To know more about bike insurance costs, do visit us on kotak general insurance for more details.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.