4 Factors That Affect Your Bike Insurance Premium – Positively & Negatively

By | September 9, 2018

Buying insurance for your precious two-wheeler is required by law. Your motorcycle is protected against any untoward incident on the road. Comprehensive protection usually constitutes coverage of medical bills and servicing costs for you and your vehicle.

However, when choosing a good plan for your vehicle, you are usually very concerned about the premiums on the policy that you must pay. Even more irritating are the policy revisions which usually mean that the policy premiums are going up.

Many different factors contribute to the complicated math by which these premiums are calculated. Here is a roundup of all factors that impact your policy premiums positively or negatively, for your better understanding of how motorbike insurance usually works:

Type of Insurance Cover

Thisis the central feature that decides what your premium is going to be. The type of coverage and benefits on your policy is something that you should consider and choose carefully.

For one, understand that there are two kinds of policies for motorbikes. One is the third-party cover, or the liability only cover, that pays for only damages to the third party’s property and does not do anything for your motorcycle or hospital bills.

This bare minimum policy is cheaper, but it does not have the same efficacy as the comprehensive cover wherein your vehicle, and hospital bills are covered as well.

The comprehensive plan is actually a must-have because many parts for motorcycles are quite expensive, and the cost of damage in any accident will far outweigh the premiums you are paying for a comprehensive plan.

A comprehensive cover also includes benefits and compensation for natural disasters, vandalism, and theft besides the obvious accident scenarios.

The Type of Vehicle

This is also one of the significant factors that affect the premium on your motorbike insurance. The make and model of the motorbike, the place where the bike is registered, the age of your motorbike and any modifications to the existing model you may have made are all factored in.

Modifications to bikes usually push the premium upwards, and older and smaller bikes have a much less premium to pay for the smaller risk they pose of being in accidents.

The higher the cubic capacity(cc) of the motorbike, the higher the premium will be as they have shown to be part of a larger volume of road accidents and other mishaps.

Your Personal Details

This may perhaps be the peskiest and most surprising part of the vetting done for calculating the premium on motorbike insurance.

Because a lower risk driver will be paying less premium than one who is considered higher risk. Similarly, a male driver who has more than 5 years of experience driving bikes will be paying significantly less than the one who has less experience.

Add-On Covers

There are often loopholes and things that are not covered by your existing policy that you may choose to insure against. These add-on covers add to the cost of the existing policy and may significantly increase your premium.

If you are looking to have a tailor-made policy that suits your needs by protecting you against risks that you deem you are exposed to, having add-ons in your policy is always a good idea.

You can also select the desired add at the time of bike insurance renewal. It’s a great opportunity to choose from different add-ons which you may have missed while buying the bike insurance. But choose wisely because these add-on covers are often quite costly.


When opting a policy for your precious bike, weigh the cost of paying a higher premium against the risks the daredevil machine is going to be exposed to during its natural life.

A comprehensive cover plan is a great idea if you value your bike, but you should really look at the fine print while picking the desired policy. With some research and a basic understanding of how premiums for bike insurance works, you can choose a good plan that is both economical and effective.

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