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How to Calculate Two-wheeler Insurance Premium in India?

By Vikas Chandra Das
22 July 2022, 8:11 PM

In recent years, two-wheelers have become a staple of Indian households. Their utility and affordability make them a preferred mode of transport for many people. However, things like meeting with an accident or facing damage due to man-made and natural disasters can't be ruled out. So, having the optimum bike insurance coverage is paramount. Even knowing the two-wheeler insurance online premium is essential.

The premium of your two wheeler insurance policy depends on various factors such as the make and model of your vehicle, its age, and the amount of coverage you want for your vehicle.

In this article, we will discuss how to calculate two-wheeler insurance online and why it is crucial to determine the same before taking an insurance policy for your vehicle.

Why is Determining the Two-Wheeler Insurance Premium Crucial?

The two-wheeler insurance premium is one of the most important factors when purchasing two-wheelers. This is because you need to pay a large amount of money as a down payment, and then you will be required to pay monthly installments for the rest of your life. Therefore, you must ensure you get enough coverage so you do not have to pay anything extra later.

The bike insurance online depends on various factors such as age, engine capacity, model, etc.

The first step in buying any policy is understanding what it entails and how much it will cost you. The second step would be comparing different policies to find one that suits your requirements and budget.

Factors Affecting the Bike Insurance Premium Online 

The two-wheeler insurance premium is calculated based on the risk of losing your vehicle to theft or damage. Bike insurance online is an essential aspect of your vehicle ownership. The premium determines the amount you will have to pay for the insurance coverage. The amount you pay depends on various factors such as the make and model of your two-wheeler, engine capacity, age, usage, and the geographical area where you live.

To calculate your bike insurance premium online, the insurance company looks at factors like:

The Model of the Vehicle

If you own a high-performance bike, its model will naturally affect your premium. Also, if your bike has many features like an ABS and airbags, that would add to your premium.

The Age of the Vehicle

Older vehicles are considered riskier than newer ones. Hence, older vehicles will cost more bike insurance premiums than newer ones.

Vehicle's Engine Capacity

The higher your vehicle's engine capacity, the higher its premium amount would be. For example, if your bike has an engine capacity of 125 ccs to 150 ccs, your premium will be lower than those having vehicles of 160-175 ccs.

Your Driving Record (If Any)

If you have a clean driving record, chances are high that you will be offered lower premiums than those with poor records. However, if you have been involved in accidents or violations within the last three years, the insurance company may not offer you any discounts.

Gross Weight of Your Bike

The heavier your bike is, the more premium you will have to pay. This is because most insurers consider heavy bikes more dangerous and charge premiums higher than for lighter ones.

How Do You Calculate the Two-wheeler Insurance Premium?

The following steps will help you calculate the bike insurance premium:

  • Check for the coverage offered by your existing insurance policy. You can check if it covers all aspects of your vehicle or only some specific items like damages caused due to accident or theft. If it doesn't cover everything, consider buying a new policy from another insurer that provides comprehensive cover at an affordable price.
  • Ensure that your two-wheeler meets all mandatory requirements set by the authorities to get insured without any hassles later. This includes ensuring that your vehicle has a valid registration certificate, insurance certificate, RC book, and other relevant documents before applying for insurance coverage.
  • Make use of an online tool to calculate the two-wheeler insurance online premium, which can help you compare policies offered by various insurers in just a few minutes!

Steps to Calculate Bike Insurance 

You can calculate the insurance premium online using the two wheeler insurance calculators provided by the insurance companies.

  • Determine your annual mileage and then multiply it with the fuel efficiency rate (in miles per gallon) to estimate your vehicle's yearly fuel expenses.
  • Determine the value of your bike by checking its market price online or from a local dealer if available. You can also get help from friends or family members who own similar bikes. If you have owned it for an extended period or have paid off its loan ultimately, then include that amount in your final calculations.
  • Calculate the sum Insured, the money you will get in case any accident occurs due to which you lose money or property.

Read more - Beginners Guide to Buy Bike Insurance Online

Things to Keep in Mind When Calculating the Two-wheeler Insurance Premium

Buying a new bike is exciting. But it would be best to be careful while deciding on the right insurance policy for your two-wheeler. The premium amount can vary significantly depending upon various factors such as vehicle type, age, ownership, and usage pattern.

Here are some tips that will help you determine the two-wheeler insurance online premium amount:

  • List down all your vehicles and their respective owners' details. Also, include the loan details of any other vehicle in your or your spouse's name. This will help you get a clear picture of how many vehicles you own and hence how much coverage each vehicle will require.
  • Write down all your monthly expenses for fuel, maintenance and insurance services for each vehicle separately. You should also consider all other costs incurred for purchasing and maintaining these vehicles, such as registration fees, parking charges, etc.
  • Make sure you track how often you ride each two-wheeler and for what purpose (commuting or leisure). For instance, if your daily commute involves riding through congested areas, this needs more protection than an occasional trip out on weekends which is unlikely to result in accidents or damage caused by third parties (hit-and-run cases).

Benefits of Calculating the Two-wheeler Insurance Premium

Many benefits are associated with calculating your two-wheeler insurance online premium before buying an insurance policy. Some of these benefits include:

  • You can compare different policies offered by other companies.
  • You will know what coverage you should opt for depending on your needs.
  • You can get discounts if you opt for specific add-ons such as health insurance or accident cover.
  • You can save money by knowing how much each component contributes towards increasing or decreasing your overall premium.

In addition to this, other benefits come with calculating two-wheeler insurance online. For example, getting an affordable deal from an insurer may be challenging if you have a higher-than-average risk profile. However, if your risk factor turns out slightly higher than average, searching for suitable two-wheeler insurance online won't be that tough.

Wrapping Up

Understanding how to calculate a two-wheeler insurance premium is vital to knowing the basic information regarding your vehicle's insurable value and calculating your premium amount. If you are looking forward to purchasing a two-wheeler or thinking of switching to one, it is essential to know how much the cost of insuring it will be. To buy a new two-wheeler that offers safety and convenience, you must decide how much money is sufficient for this purpose. You can avoid overspending and save money if you understand all the steps in calculating the insurance premiums.

Read more - Benefits of Bike Insurance Premium Calculator


1. What is a two-wheeler insurance premium?

A two-wheeler insurance premium is a sum insured amount you must pay to your insurance company in exchange for the coverage the latter offers you. This sum insured amount varies based on the type of vehicle and its total damage repair cost (TDR) value.

2. Why is determining the two-wheeler insurance premium necessary?

Determining the two-wheeler insurance premium is important because it will help you decide what kind of policy you need based on your budget. If you want to buy a new bike, you can use this figure to decide on the right coverage-premium combo based on your needs.

3. How can you determine the bike insurance online premium?

The bike insurance premium is based on your motorcycle's value, age, type, brand, model and engine capacity. Input against these variables in the calculator to determine the bike insurance online premium at the earliest possible time!

4. What is an essential step in determining the bike insurance premium?

A vital step is determining the type of coverage you need and how much you need. It will depend on whether you are buying a new or used motorcycle, financing it through a bank or paying cash, and whether you want additional features.

5. What does the bike insurance premium depend upon?

The premium depends on the type and value of your two-wheeler, your driving record, and whether you have any other insurance policies.

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