6 Variables That Contribute To our Two-Wheeler Insurance Premium

A two-wheeler is not just a luxury anymore but a necessity as it makes managing remote workers travelling extremely convenient. Similarly, purchasing a two wheeler insurance policy to protect your vehicle from any unforeseen circumstances is equally important because it is necessary as well as mandatory. As per the Motor Vehicles Act, 1988, every vehicle plying on Indian roads must at least have a valid third-party liability insurance policy. However, this policy only covers damages caused to the third-party’s person and property and not the ones caused to the policyholder’s property.

If you wish to protect your vehicle as well, you need to buy a comprehensive policy.

When you have the backup of an adequate two wheeler insurance policy, you need not worry about paying for the damages caused to your bike during natural calamities like floods, earthquakes, etc., or man-made calamities like riots, vandalism, etc. In case your precious bike gets stolen, it would be paid for under the insurance policy.

It is essential to keep a close eye on the premium-coverage ratio to ensure you benefit the most. Compare policies sold by various insurance companies online. The possibility is that you are likely to find that you’re paying more than others for the same vehicle.

Various factors affect vehicle insurance premium costs. You should know about these before you buy vehicle insurance.

  1. Coverage type

Your insurance premium majorly depends on what type of coverage you’re selecting, either third-party or comprehensive. The third-party cover is basic and compulsory according to the law. This policy covers damages caused to the third-party’s person, property, or death. However, the policy does not cover own damage. The premium benchmark for third-party liability policies has been set by the Indian insurance regulator.

On the other hand, a comprehensive policy costs a little more than the third-party one. However, it covers third-party liability along with own damage caused due to natural or man-made events. Always ensure that you prioritize timely insurance renewal to receive coverage benefits.


  1. Additional covers

You can purchase add-ons to enhance your existing coverage. There are various options to choose from such as Zero Depreciation, Engine Protector, 24×7 Roadside Assistance, etc. However, each of these add-on covers requires you to pay an extra premium. Therefore, only choose those that you require.

  1. Modification of various parts

People usually go for modifying their two-wheelers without realizing that every modified part can increase the IDV and subsequently the premium amount significantly. Therefore, you must insure each modified part separately. In case an uninsured modified part gets damaged, you might face a huge financial loss.

  1. Geographical location

If you’re located in an urban location (also known as Zone A cities), the risk exposure increases because of the traffic density and so the premium for your bike insurance also increases. On the contrary, if you’re using your bike in a rural area (Zone B cities), the premium payable will be lower.

  1. Deductible

The payable insurance premium is highly influenced by the deductible. The deductible is an amount you have to bear as part of the claim. It can be a certain percentage or predetermined value, as agreed upon while purchasing the policy. You can opt for voluntary deductible and reduce the insurance premium on your two-wheeler.

Select an appropriate cover for your bike and reduce your out-of-pocket expenses in case of any mishap. Make sure to compare various policies online before selecting one to get the cheapest two wheeler insurance that also provides you with the coverage you need. You can use the two wheeler insurance premium calculator and get quotes easily.


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