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5 Major Factors of Your Bike Impacting its Insurance Cover

By Vikas Chandra Das
08 September 2022, 4:06 PM

It's great to ride a new bike. By protecting your priceless item from any unanticipated accidents, the appropriate insurance coverage provides you with the necessary financial security. People do not often think about insurance. They should ideally do the same when looking for, comparing, and purchasing a bike insurance coverage as when buying a bike. Typically, an insurance agent or the dealership will help you purchase your first policy. Many of us are unaware of the fact that we really don't need much help and may get two-wheeler insurance coverage on our own. The purchase of a two-wheeler insurance policy involves several different factors. Most importantly, it should fit into your budget and offer sufficient financial protection during times of need. It is also true that you shouldn't pay a significant sum of money to cover your bike's insurance. You must comprehend the fundamentals of bike insurance in order to strike the proper balance. We'll concentrate on how your bike influences insurance in this post and explain why prices can vary from person to person.

Your bike impacts its insurance policy in many ways. Some of the questions that an insurer might ask you about your bike are mentioned below.

1. Who is the Manufacturer of Your Bike?

The bike's manufacturer, or brand can have a significant impact on the cost, which in turn affects the premium for bike insurance. Many ardent motorcycle enthusiasts imagine owning a Harley Davidson, BMW, or Indian Springfield. Bike owners are enticed to purchase such bikes by their incredible characteristics, particularly the firing, and beauty. All of this raises a bike's value and directly affects how much its bike insurance will cost. On the other hand, while basic and fuel-efficient bikes like TVS, Bajaj, and Hero Honda are less expensive, their insurance costs are comparably low.

2. What is the Model of Your Bike?

The model you choose has a big impact on the cost of insurance, just as the manufacturing brand of the bike is crucial in determining the bike insurance rate. The insurance premiums for even identical models are different from one another. For instance, TVS Motors produces the TVS Apache RR and TVS Apache RTR, although they fall into distinct price ranges. As a result, depending on how much the bike is worth, you will pay a different premium to cover them.

3. How Much is the Engine Capacity of Your Bike?

The engine is deemed as the heart of a bike. It will be in better health the more you take care of it. The cubic capacity (cc) of the engine will be one of the primary elements used to determine the premium cost when you purchase bike insurance. Higher-cc motorcycles will also cost more to insure.

4. When was Your Bike Purchased?

As time goes on, the value of two-wheelers decreases. Numerous problems, like bike wear and tear, engine damage, etc., arise as bike ages rise. Your bike insurance's worth will also plummet due to this value decline.If you have a recently purchased bike, of course, its depreciation would be less hence high premiums you have to pay. 

5. How Much is the Insured Declared Value of Your Bike?

Insured Declared Value is referred to as IDV. This is the value that you must choose when purchasing your insurance. It is roughly the bike's current market value. Keep in mind that a greater IDV will raise the cost of your insurance and a lower IDV will result in a lower total loss claim payout. Therefore, each time you renew the policy, set the appropriate IDV.

Apart from the basic factors, the modifications that you make to your bike may also affect its insurance policy.

Performance Modifications: Performance upgrades for two-wheelers frequently include fuel-efficient components or mechanisms that boost speed. As we all know, accidents are more likely to occur at higher speeds. Performance modification is being investigated by insurers as a potential reason for the high number of claims.

Whether or not you decide to make the adjustment is entirely up to you. However, it is almost inevitable that bike insurance rates will increase given the danger.

Visual Modifications: You cautiously make an effort to enhance the appearance of your favorite hobby by giving it a fresh look or altering the color totally. However, the risk of theft increases as a product's aesthetic value does. This directly affects the cost of two-wheeler insurance, and as a result, the insurance provider asks for a larger premium. A proportional difference in premiums results from the market value of your bike rising along with its aesthetic value.

Security Modifications: This kind of modification safeguards your automobile while also lowering your insurance costs. Your bike is less likely to be stolen with security enhancements. If you have an anti-theft device in place, the insurer will view you as low-risk and disregard your preventative efforts.

The insurance provider provides discounted two-wheeler insurance in an effort to promote this habit. Therefore, security upgrades keep your bike safe at all times while also allowing you to save money on insurance.


You are shielded from legal liability by bike insurance. Additionally, it saves you money by offering a cashless claim function that enables you to repair your bike without emptying your wallet. Therefore, purchasing bike insurance is crucial. Think about all the information about your bike mentioned above before purchasing bike insurance. They have a significant impact on the cost of your two-wheeler insurance premium.



1. How does the age of the bike affect its depreciation rate?

Depreciation is the decline in an asset's market value. The bike depreciates more and more each year as it gets older. The Motor Tariff Act's table is used to compute the depreciation rate.

2. My bike has a low insured declared value. Will it affect my bike insurance?

In the event of a total loss, a smaller IDV will result in a reduced claim amount. When your bike is irreparably destroyed, it is referred to as a total loss, and your insurance company will compensate you with the predetermined IDV. Therefore, it is advised to set the appropriate IDV in order to receive the appropriate compensation.

3. What are the parameters for a bike engine’s cubic capacity when it comes to bike insurance?

The Insurance Regulatory and Development Authority of India has set coverage based on the engine’s cubic capacities for insurance. The insurer will calculate the IDV for your bike based on these parameters for the engine.

4. How does bike modification impact two-wheeler insurance policy?

Usually, improvements raise the bike's worth. If you decide to insure the alterations, they will have an impact on the price of its insurance policy. Accordingly, depending on whether you decide to insure the modifications to the bike, the premium cost could increase.

5. Is there a limit on the number of add-ons I can purchase?

There is no restriction on how many add-ons you can purchase. However, it is suggested that you only purchase add-ons that satisfy your needs. This will assist you in preventing a rise in the cost of your two-wheeler insurance because add-ons raise the cost.

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