Two Wheeler Insurance

What Are the Variables that Impact the Motorcycle Insurance Premium?

What Are the Variables that Impact the Motorcycle Insurance Premium? Motorcycle Insurance is the solution to cover the soaring costs that may emerge because of damage caused to the motorcycle. It…

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What Are the Variables that Impact the Motorcycle Insurance Premium?

Motorcycle Insurance is the solution to cover the soaring costs that may emerge because of damage caused to the motorcycle.

It includes all kinds of motorcycles, scooters, and mopeds.

Whichever motorcycle you buy, you need to buy an insurance policy. So, you should keep aside an appropriate amount of money to cover this.

Variables That Impact the Motorcycle Insurance Premium

A bike insurance premium is based on a number of factors. The companies evaluate the risk exposure based on various specifications like age of the applicant, make of the vehicle, vehicle model, the geographical location of the applicant, etc.

Insurance Regulatory and Development Authority (IRDAI) regulates the insurance companies in India. It makes sure the policyholder’s interests are protected.

It is very important for you to understand the variables that affect the motorcycle insurance premium. It will help you to figure out the reason behind the premium attracted by your selected insurance plan.

Variables Impacting the Bike Insurance Premium

  1. Age of the Applicant: The age of the insurer impacts the insurance premium. The younger the rider, higher will be the premium. According to the insurance companies, a younger rider could drive rashly as compared to a middle-aged rider.
  2. Make and Model of the Motorcycle: For a low-end bike, the insurance premium will be low. If you have a high-end bike, you will require extensive insurance coverage. In such a case, the insurance premium will be high.
  3. Year of Manufacture: The age of the bike and the rate of depreciation have a direct relationship. This means that if the vehicle is old, the rate of depreciation will be more. So, if your vehicle is old and you purchase a policy for it, the Insured Declared Value (IDV) will be low. Thus, the insurance premium will be low.

IDV is based on the age of the motorcycle

Age of the Motorcycle IDV
between 0-6 months 95% of ex-showroom price
between 6 months -1 year 85% of ex-showroom price
between 1 - 2 years 80% of ex-showroom price
between 2 - 3 years 70% of ex-showroom price
between 3 - 4 years 60% of ex-showroom price
between 4 - 5 years 50% of ex-showroom price


  1. Engine Capacity: If you know the motorcycle engine’s cubic capacity (cc), you can roughly calculate the insurance premium. It is one of the most important factors to determine the bike insurance premium. If the engine capacity is high, the premium will be high, and vice-versa.
  2. Geographical Location: If you stay in an urban city, the density of traffic will be high. Hence, the chances of accidents will also be high. So, be prepared to pay a higher premium. If you are located in a small town or a village where the denseness of the traffic is low, the insurance premium will also be low.
  3. Installation of Anti-Theft Device: If you have an anti-theft device or any similar safety mechanism installed in your bike, you will get an extra discount on the bike insurance premium.
  4. No Claim Bonus: You may get a discount of up to 50% if you haven’t filed an insurance claim in the last few years. Consider this as a reward by the insurance company for riding safely.
  5. Deductible: If you opt for a voluntary deductible, the bike insurance premium payable to the insurance company decreases.

How Does Calculation of Bike Insurance Premium Online Help

The whole process of calculating bike insurance premium can be done online. It saves a great amount of time and effort.

  • The calculation of bike insurance premium online is based on an algorithm and hence accurate.
  • It helps to eliminate the need to pay any sort of commission or fees to the middlemen.
  • It is an error-free tool at no extra cost.

Bike Insurance Premium Calculator

You can get quick insurance bids by using bike insurance premium calculator. All you need to do is go to the official website of the motorcycle insurance policy provider and click on the bike insurance premium calculator.

You will be asked to provide the following details:

  • Your name, contact number, and email id
  • Extra cover
  • Details about the make, model, class, and bike manufacturer.
  • City and registration date
  • Type of fuel

So, go ahead, compare the various policies, calculate the bike insurance premium online and make an informed decision to buy your motorcycle insurance policy.