header Two Wheeler Insurance

7 Tips to Buy the Cheapest Motorcycle Insurance Policy

By Vikas Chandra Das
28 July 2022, 2:50 PM

Two-wheeler insurance is beneficial for several reasons. It gives you the freedom to ride on Indian roads legally. Moreover, it provides financial support if an accident or collision involves the insured two-wheeler. 

Two-wheeler insurance policies are of three types - comprehensive, standalone own damage and third-party. While comprehensive insurance covers own damage and damage to a third-party person, vehicle, or property, third-party insurance only settles third-party claims. Whereas a standalone own damage policy covers policyholders and their bikes. No third-party claim can be raised with this insurance.

Generally, comprehensive insurance policies are more expensive than third-party and standalone own damage policies. However, most two-wheeler owners prefer a comprehensive bike insurance policy since it provides extensive coverage. Fortunately, you can buy a bike insurance policy at an affordable cost if you know the best ways to do so.

The following sections contain seven foolproof tips to get a bike insurance policy at the cheapest rate. Read on to know more.

7 Foolproof Tips to Buy the Cheapest Motorcycle Insurance Policy

1. Know Your Bike

Insurers generally consider fast sports bikes, such as Yamaha R1, riskier than normal commuter bikes such as Honda Shine. So, if you and your bike love speed, you may have to shell out a bit more.

Besides the bike category, the CC or Cubic Capacity also plays a major role in determining the price of a two-wheeler insurance policy. For instance, the insurance cost of a 125cc bike is typically lesser than that of a 350cc bike. 

So, before looking for a cheap bike insurance policy, you must check your bike's category and cubic capacity and choose a vehicle that aligns with your spending capacity.

2. Compare Policies Till You Find the Best One

Paytm Insurance offers you access to quotes from 28 Indian insurers. All you need to do is create an online account, enter your bike registration number, and click on 'proceed' to get free quotes and compare various policies.

When comparing insurance policies, look beyond the displayed price. The best policy is the one that offers the highest no-claim bonus (NCB), insurance cover, and other benefits at an affordable price. So, comparing the policy benefits with its price is paramount to finding the best bike insurance policy.

3. Scour for Offers and Discounts

A bike insurance policy can allow you to save more than you ever thought. For instance, some insurers offer discounted premiums to government employees. So, if you are a government employee, flash your identity card to get an instant discount on your bike insurance premium.

The discounts do not end there. If you buy a long-term bike insurance policy for, let's say, five years, you can save more money than you would spend on renewing the same policy every year for five consecutive years. Moreover, buying a long-term insurance plan makes sense because you remain immune from price fluctuations during the policy period. Additionally, if you install anti-theft safety devices on your bike, the insurer may offer you a deep discount of up to 2.5% of the net premium. However, the Automotive Research Association of India (ARAI) must approve the anti-theft security system.

4. Use the NCB Benefits

Two-wheeler owners with a valid comprehensive insurance policy earn NCB if they don't claim in a policy year. So, on renewal, the premium reduces with this NCB feature. The premium reduction rate starts from 20% and goes up to 50% for five consecutive claim-free years.

Read more - A Mini Guide on NCB for Bike Insurance

5. Become an AAI Member

AAI, or the Automobile Association of India, is an independent organisation working as per the guidelines laid by the Insurance Regulatory and Development Authority of India (IRDAI). If you are a member of the AAI, Indian insurers will offer you a discount of 5% on the net premium. 

Don't fret if you cannot secure an AAI membership. You can still join a riders' club to refine and hone your riding skills. Being a pro rider helps you avoid accidents, enabling you to claim the NCB benefits year after year. 

6. Be Happy with a Reduced IDV

IDV or Insured Declared Value is the actual price of your motorcycle after factoring in depreciation. The IDV reduces every year. However, insurers offer the option to increase or decrease the IDV should a policyholder desire so. If you increase the IDV, the premium will also increase. Conversely, if you decrease the IDV, the premium will be adjusted to reflect the change.   

Hence, you may contemplate reducing the IDV to reduce the premium of a bike insurance policy. However, a lower IDV would also mean that you can claim less if your two-wheeler suffers damage. So, apply for a lower IDV thoughtfully.

7. Increase the Deductible

Deductible refers to the amount the policyholder agrees to pay at the time of bike repair after an accident. The deductible is of two types - compulsory and voluntary. While the insurer fixes the compulsory deductible, you are free to choose the voluntary deductible amount. As you increase the voluntary deductible amount on your bike insurance policy, the lender decreases the premium and quotes a lesser amount. 

However, before increasing the voluntary deductible, carefully analyse your financial condition. If you are unsure of sponsoring a part of the repair, it is better to desist from increasing the voluntary deductible amount.   

The EndNote

The suggestions mentioned in this article can help you lower bike insurance premiums considerably. Pick the best pieces of advice from here and visit Paytm Insurance to see these tips in action.  

Read more - Top Selling Bike Insurance Plans of 2022


1. What are the types of bike insurance policies?

Bike insurance policies can be comprehensive, standalone own damage or third-party. A comprehensive insurance policy provides own damage and third-party coverage. In contrast, a third-party insurance policy only covers the damage caused to a third party. A standalone own damage policy would cover policyholders and their respective bikes.

2. Is cubic capacity important for bike insurance?

Insurers check the cubic capacity (CC) of a bike to determine its premium. The premium for a 125cc bike is typically lower than the premium for a 350cc two-wheeler. 

3. How can I compare two-wheeler insurance policies?

Paytm Insurance provides access to 28 Indian insurers. You can register and scan the quotes after entering your bike registration number. 

5. Do AAI members get a discount on bike insurance premiums?

Yes. The members of the Automobile Association of India (AAI) get an additional discount of 5% of the bike insurance premium amount. 



5. What are the insurance premium rates for two-wheelers as per the IRDAI?

The latest rates issued by the IRDAI for two-wheeler insurance for third-party cover range from INR 538 to INR 15,117, depending upon the CC and the insurance term. These rates are effective from 1st June 2022.

Two wheeler Insurance banner
Two wheeler Insurance

Starting at only ₹1.5 per Day*

Enter your details to buy Bike Insurance
By proceeding you agree to Terms & Conditions
Proceed without two wheeler number