How Age and Type of Bike Affect Two-Wheeler Insurance Cost?
Think about how your bike supports you from reaching early morning meetings to your weekend rides – it saves time, hassles and money. In case your bike gets stolen, breaks down or is damaged in an accident without insurance, what will you do?
It can disrupt your daily routine, and the hefty repair or replacement will stress your finances.
Purchase a two-wheeler insurance that provides a safety net against emergencies or accidents. But do you know that a bike’s model and age impact your insurance premium? Read on the blog to find out why it matters in the two-wheeler insurance price.
Why Do Age and Type of a Bike Matter in Two-Wheeler Insurance?
Before providing bike insurance, the insurance provider will assess the current market value of the bike to calculate the premium and insurance coverage. The market value of a motorcycle decreases due to depreciation, which is actually IDV (Insured Declared Value).
Insurance provider companies use a depreciated value to determine the Two-wheeler insurance price and premium. A lower depreciated value results in a lower premium and vice versa. For instance, a new bike has high market value and will require a high premium, reflecting its value.
On the other hand, an older bike is less expensive and has wear and tear factors built in. This reflects a lower IDV and reduces the premium for the bike insurance.
At the same time, the model of a bike can heavily impact the two-wheeler insurance price. Sports bikes with higher speeds may have a greater risk of accidents, whereas standard motorcycles and scooters have a low risk profile.
In this context, your expensive sports car may have a higher premium compared to your neighbour’s old scooter.
How Does the Age of a Bike Affect the Two-Wheeler Insurance Price?
The IDV of your bike will be considered the sum insured and fixed at the start of the Two-wheeler insurance policy period. However, the age-wise depreciation for the two-wheelers is applicable only for constructive total loss or total loss claims.
Here is the table that shows the average used percentage of depreciation for fixing IDV based on the age of the vehicle, which varies from insurer to insurer.
| Age of the Two-Wheeler | Percentage of Depreciation for Fixing IDV |
| Bike not exceeding 6 months | 5% |
| Ages within 6 months to 1 year | 15% – 20% |
| When the bike is between 1 and 2 years old | 30% |
| Ages 3 years to 4 years | 40% |
| 5 years older bike | 50% |
Most insurance companies have slightly varying depreciation rates that increase with the age of the insured two-wheeler. It reduces the market value of the bike, thus helping lower the Two-wheeler insurance price.
How Does a Type of Bike Impact the Price of Two-Wheeler Insurance?
The two-wheeler insurance price depends on several types of vehicle models, including regular scooters and motorcycles. A normal commuter’s bike has a lower premium rate, while luxury or hybrid bikes require a higher premium insurance.
For instance, your Harley-Davidson Road Glide Special needs a high sum insured for repair or part replacement, which increases its premium. Conversely, your neighbour’s TVS Zest 110 scooter tends to have a lower premium for comprehensive bike insurance, since spare parts and repair costs are expensive.
What are the Additional Factors to Consider When Buying a Two-Wheeler Insurance?
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Coverage Type
The coverage you choose also affects your Two-wheeler insurance price. Bike owners can opt for comprehensive bike insurance plans to ensure their vehicles’ all-around protection and third-party liability at an affordable premium.
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Customisation
Any modification to your bike can lead to a higher premium due to the increased risk of damage or theft. For example, when making performance enhancements or adding custom parts to your bike, these modifications can increase your bike’s value and risk of theft. You may have to pay a higher premium.
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Anti-theft Devices
Installing an anti-theft device involves alarming features, such as locks and GPS trackers, which reduce the risk of theft. You can lower your premium with just an installation and qualify for a discount on the premium rate.
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Additional Covers
Add-on covers can extend your existing bike insurance coverage and increase your insurance premium rate. Therefore, adding roadside assistance, zero depreciation cover or engine protection provides additional protection to your bike but increases the premium.
Wrapping Up
Whether you own a premium superbike, a budget moped or an electric scooter, having a two-wheeler insurance plan safeguards against theft, accidents and damage. Age and model type of a bike have a significant effect on the two-wheeler insurance price.
For new, luxury, and super bikes, a comprehensive bike insurance policy is the safest option. Conversely, for older bikes, third-party bike insurance is also a good choice.
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