Variables that impact the motorcycle insurance


20 Jun 2023

Factors to Consider When Determining Your Motorcycle Insurance Premiums.

The cost of motorcycle insurance is influenced by several different factors. The insurance provider evaluates a variety of factors in order to assess risk when determining the premium of your motorcycle insurance policy. The factors that affect the premium must thus be known in order to comprehend why your insurance policy costs the amount it does.

Factors to consider for two-wheeler insurance premiums

  • Make and model - It is true that a bike's make and model affect its cost. The brand and model of the bike are also the obvious factors that affect the motorcycle insurance price because insurance is purchased to preserve the value of the bike. Owning a cheaper bike will also result in a lower insurance premium. On the other hand, you will have to pay a higher premium if you possess a costly sport bike.

  • Age of the bike - The age of a bike is also considered when determining the premiums of 2-wheeler insurance. This is the reason that every insurance portal asks you to input the age of your bike when you purchase an insurance plan in order to give policy pricing.

  • Type of policy - The type of coverage you choose to purchase will have a significant impact on the cost of your motorcycle insurance. The premium cost will be lower if you choose mandatory third-party coverage. However, it only truly protects you against losses caused by third parties; it doesn't actually serve the goal of safeguarding your own bike. Selecting comprehensive insurance will ensure that your personal damages are also covered, giving you a complete defense.

  • Insured declared value - The insured declared value of the bike represents its current market value. A motorcycle's IDV is determined once a year since depreciation causes the motorcycle's value to drop over time. The IDV is taken into account when determining premiums since the supplier of two-wheeler insurance is only obligated to reimburse damages up to the bike's worth.

  • The capacity of the engine - The engine size of the bike is one of the most frequent and significant elements that affect the cost of motorcycle insurance rates. The size of the engine is determined by its cubic capacity. A bike with an engine size of 75 CC or less will result in a lower premium payment. However, you will need to pay more for your bike insurance coverage if it has a 350 CC engine.

  • NCB - The No Claim Bonus (NCB) is a bonus that insurers offer to policyholders who avoid filing a claim throughout the policy year. The NCB is provided as a reduction in the premium for the subsequent policy year. If you maintain a claim-free record and practice safe driving, you might increase this benefit by up to 50%.

  • Devices to prevent theft - For installing security devices that have been approved by the Automotive Research Association of India, several motorcycle insurance companies offer discounts. It suggests that if your bike is equipped with approved safety equipment, your bike insurance rate will be cheaper as modern technology minimizes the possibility of bike theft and loss, reducing the chances of insurance companies offering compensation.


When choosing two-wheeler insurance coverage, keep in mind the aforementioned factors. If you are aware of these factors, it will be easy for you to determine the suitable premium for your bike and ride it without any worries.

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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.