header Two Wheeler Insurance

The Reasons Behind Why Car Insurance is Expensive than Bike Insurance?

By Vikas Chandra Das
25 November 2022, 1:42 PM

Insurance is required for both cars and bikes in India. There is a widespread misconception that bike insurance operates similarly to car insurance. While a car is larger and more expensive, the risk associated with riding a motorcycle is higher.

A bike insurance policy is significantly less expensive than car insurance. It depends on where you reside, the value of your vehicle, its engine power but generally speaking, the cost is approximately one-half that of insuring your car. Having the most appropriate insurance coverage in the aspects where you require it can make all the difference.

Therefore, the premium for each type of motor insurance is determined after careful deliberation. What are these dangers, and which categories of auto insurance have the highest premiums? Let's find out.

Reasons Why Car Insurance is So Expensive

The Vehicle Types

Insurance premiums might fluctuate widely from one person to the next simply because each person drives a different kind of vehicle. If you drive a high-performance sports car, expect to pay a higher premium for your motor insurance.

Also, the IDV of a car is more than a bike and while deciding the premium, the insurers calculate the same and offer the quotes based on that. The insurance companies take into account, the make, model and variant of your vehicle before calculating the premium. And, usually cars are of high market value than bikes. Thus, the cost of insuring them would be costly than a bike. 

Traffic Violations in the Past

There is no way around the fact that a driver with a history of reckless behaviour behind the wheel will be subject to increased premium payments. If a car owner has been the subject of claims in the past, the insurance company may require him to pay a higher rate.

Whether you are at fault or not, parking fines, speeding fines, drunk driving convictions, or being questioned after an accident can affect motor insurance coverage. When considering whether or not to insure a driver, insurance companies look at several factors, including the driver's driving record.

What Factors Contribute to the Relatively Low Cost of Motorcycle Insurance?

Bike insurance companies know it is less expensive to insure a motorcycle, so they provide lower premiums for bike insurance. Motorcycles typically have a lower value than other types of vehicles and have lower expenditures for both their parts and their repairs.

In addition, motorbikes often cause less property damage and serious harm when an accident occurs. Do you want to learn more about the factors contributing to the low cost of bike insurance? Here is one.

As was already mentioned, bikes are considerably more compact than cars. Because of this, fewer items on a motorcycle could be destroyed if the motorcycle was involved in an accident. On the other hand, if a motorcycle crashes into a building, the damage may be less than that caused by a bigger car.


As can be seen, each vehicle has a unique motor insurance coverage, and as a result, each one costs a different amount. Bike insurance, on the other hand, is less expensive overall and has lower per-item maintenance and replacement costs. There are numerous differences between car insurance and bike insurance prices. However, assuming that the two policies are equivalent would be a mistake.


1. What steps should be taken if one cannot afford car insurance?

If you cannot pay for auto insurance and your coverage expires, you should stop driving your vehicle immediately. Without proper auto insurance, you are not legally allowed to drive. Alternatively, you can look for measures to reduce your insurance premiums, such as selecting basic coverage, driving a less expensive and older vehicle, increasing your deductible, etc.

2. Does a standard bike insurance coverage include protection for a pillion driver?

A separate personal accident policy needs to be bought for the person riding on the back of the bike.

3. How much does car insurance cost per year on average?

The cost is determined by several variables, including age, gender, geographical location, IDV, MMV, and driving history. Therefore, one should do window shopping and hunt for the greatest deals.

4. Which is more cost-effective to operate, a car or a motorcycle?

A basic motorcycle often has lower maintenance costs than a car over its lifetime. However, the costs associated with operating either vehicle are determined by several factors. The car you drive, and your driving record will both play a role in determining how much you pay for insurance.



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