There are many aspects that determine your Bike insurance premium. The premium of your bike insurance may vary with your neighbor, as the premium of bike insurance depends on many factors. Some of the factors are discussed here:


The most important factor in deciding the premium of the bike insurance is the coverage. Higher the coverage, higher is the insurance premium. Minimum you have to go for only third party cover which covers the damages, injuries or even death caused to the third party. But this alone may not suffice and hence you can go for comprehensive cover which will cover you with accidents, thefts, natural calamities, other mishaps along with the third party cover.

Model and make of your bike

The better your model is, the higher is the premium of your two wheeler. If you own a luxury bike or a premium model, then you must be ready to pay a higher premium.

Your age and driving record

Yes, your age may also decide your premium. The age bracket of 18 to 25 is likely to cause more accidents and physical damage, hence the people who fall in this age bracket are asked to pay a little more premium. The company also considers the past driving record of the rider.

Year of Manufacture

The old bikes have a higher rate of depreciation and hence their IDV or insured declared value is low. Hence they have a lower premium.

Add on

If you own a luxury two wheeler you would have spent some money in accessories, and hence you would like to protect that too. So, if you are going for an add-on cover such as zero depreciation cover, there will be a hike in the premium amount of your bike insurance.

More dense area

If your address falls into the “High density” locality or an urban location, then be ready to pay a higher premium. The reason being that the insurance company believes that a higher dense area or an urban locality will have a higher traffic and hence the chances of accidents are more. This is why they may ask you to pay more premium.

Anti-theft Discount

If you have fitted an Anti-Theft device in your two wheeler, this means that the chances of theft has reduced to minimal, so you have done half of the job of an insurance company, hence your premium amount will be quite low. An ARAI approved anti-theft device may fetch you an additional discount of more than 2%.

NCB or No claim bonus

One of the important factors to calculate your premium is NCB or no claim bonus. This benefit is given to those people who have not claimed an iota from the insurance company in the past year. This way you are liable to get a bonus or a discount from the company for not demanding any claim in past. This is one of the appreciation the company gives you in the form of bonus for being a responsible driver.


The insurance company gives discounts to the people who are from the professions like doctors, government employee, defense personnel, etc. So if you happen to be one of these, you will be expected to pay a lesser premium.

Voluntary Deductible

This is one easy way of lowering down the amount of insurance premium of your two wheeler. You will be paying a lesser premium if you voluntarily declare to the bike insurance company that you would be able to bear the expenses of a certain amount of money at the time of claim.

Although bike insurance premiums are fairly low, it is ultimately our money spent on the coverage of our bike. This just makes sense to know the factors that influence bike insurance premium calculation, so that we are aware of the value of the cost.

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Factors that Define Bike Insurance Premium Calculation