Celebrate Diwali Safely with HDFC ERGO Bike Insurance

• Dec 11, 2025
• Admin

When it comes to owning a bike, having the right insurance plan is just as essential as wearing a helmet. Bike insurance not only protects you from financial losses due to accidents, theft, or damage, but it also ensures you comply with Indian Motor Vehicle laws. One of the most frequently asked questions among bike owners is — “What is the bike insurance price, and what factors determine it?”

In this detailed guide, we will explore everything you need to know about bike insurance price, including the types of policies, influencing factors, how to calculate your premium, and smart tips to save money on your two-wheeler insurance.

Understanding Bike Insurance

Bike insurance, also known as two-wheeler insurance, is a financial safety net that covers you against unexpected expenses resulting from accidents, theft, natural disasters, or third-party damages involving your motorcycle or scooter.

In India, every bike owner must have at least a Third-Party Liability Insurance policy as per the Motor Vehicles Act, 1988. This mandatory coverage protects you against legal and financial liabilities arising from damages or injuries caused to a third party by your vehicle.

However, a Comprehensive Bike Insurance Policy offers wider protection, covering both third-party liabilities and own-damage costs, ensuring peace of mind.

Types of Bike Insurance Policies in India

Before diving into the pricing aspect, you should understand the different types of two-wheeler insurance plans available in the market.

1. Third-Party Liability Insurance

This is the mandatory coverage required by law. It covers damages caused to another person, vehicle, or property by your bike. However, it does not cover any damage to your own vehicle.

The price of third-party insurance is regulated by the Insurance Regulatory and Development Authority of India (IRDAI), and it mainly depends on your bike’s engine capacity (cc).

2. Comprehensive Bike Insurance

This plan offers complete protection by covering:

• Damages to your bike caused by accidents, fire, natural calamities, or vandalism.
• Theft of your bike.
• Third-party liabilities.

The price of a comprehensive plan includes both third-party premium and own-damage premium, which vary based on multiple factors such as bike model, age, location, and IDV (Insured Declared Value).

3. Standalone Own-Damage Cover

This plan allows you to buy own-damage protection separately if you already have a third-party cover. It gives flexibility to enhance coverage as per your need.

4. Long-Term Bike Insurance

To avoid annual renewals, you can opt for 2-year or 3-year long-term policies. These plans lock the premium rates for the policy period, offering protection from yearly price hikes.

Factors Affecting Bike Insurance Price in India

Bike insurance prices differ for every owner because multiple factors influence the premium calculation. Understanding these factors can help you make an informed decision.

1. Type of Coverage

A comprehensive plan costs more than a third-party policy because it offers wider protection. However, it gives you better value in the long run.

2. Insured Declared Value (IDV)

IDV represents the current market value of your bike. It is the maximum amount the insurer will pay if your bike is stolen or completely damaged.
Higher IDV increases the premium but also ensures a higher claim amount in case of total loss.

3. Engine Capacity (cc)

The engine’s cubic capacity directly affects the insurance cost. Bikes with higher engine capacity are considered riskier and attract higher premiums.
For instance:

• Bikes up to 75cc have lower premiums.
• Bikes between 75cc to 150cc have moderate premiums.
• Bikes above 150cc have higher premiums.

4. Age of the Bike

Older bikes have lower IDV and hence lower premiums. However, they may attract higher maintenance costs and lower resale value.

5. Make and Model

Premiums vary based on the bike’s brand, model, and variant. Sports or luxury bikes cost more to insure due to expensive spare parts and higher risks of theft.

6. Location

Urban areas or metro cities usually have higher insurance premiums because of greater traffic density and accident risk compared to smaller towns.

7. No Claim Bonus (NCB)

NCB is a reward for not filing any claims during the previous policy year. You can receive discounts up to 50% on the own-damage premium over consecutive claim-free years.

8. Add-On Covers

Add-ons like zero depreciation, roadside assistance, or engine protection enhance your coverage but also increase the overall insurance price.

9. Voluntary Deductibles

Opting for a voluntary deductible — a portion you agree to pay during a claim — can help reduce your premium amount.

10. Anti-Theft Devices

Installing certified anti-theft devices approved by ARAI (Automotive Research Association of India) may qualify you for discounts on your premium.

Average Bike Insurance Price in India

While exact pricing depends on several variables, here’s a general overview of what you can expect:

• Third-Party Insurance: Rs. 500 to Rs. 2,000 annually, depending on engine capacity.
• Comprehensive Insurance: Rs. 1,000 to Rs. 10,000 annually, depending on IDV, model, and add-ons.
• Premium Bikes (above 500cc): Can range between Rs. 8,000 to Rs. 25,000 annually for comprehensive coverage.

These are approximate values; the actual price varies based on insurer and coverage details.

How to Calculate Bike Insurance Price

You can easily calculate your bike insurance premium using online tools available on insurance company websites or aggregators.

Here’s how it works:

1. Visit the insurer’s website or online calculator.
2. Enter your bike details such as make, model, registration year, fuel type, and location.
3. Select the type of policy (Third-party or Comprehensive).
4. Choose the desired IDV and add-ons.
5. The calculator will instantly display your estimated premium.

Using this feature helps you compare plans and select the most affordable and suitable option for your needs.

Add-On Covers That Affect Bike Insurance Price

Add-ons or riders are optional features that enhance your insurance coverage. While they increase the premium, they provide better protection and peace of mind.

Here are some popular add-ons:

1. Zero Depreciation Cover

It ensures you get the full claim amount without depreciation deductions on replaced parts during repairs.

2. Roadside Assistance Cover

Offers help during breakdowns, flat tires, or emergencies anywhere and anytime.

3. Engine Protection Cover

Covers repair costs if your bike’s engine gets damaged due to water ingression or oil leakage.

4. Personal Accident Cover

Provides financial protection in case of injury or death of the owner-driver due to an accident.

5. Consumables Cover

Covers costs of consumables like nuts, bolts, lubricants, and other small items during repairs.

6. Return to Invoice Cover

Reimburses the original invoice value of the bike in case of total loss or theft, including road tax and registration cost.

Though add-ons increase your bike insurance price, they enhance your coverage substantially.

Tips to Reduce Bike Insurance Price

If you want to save on your bike insurance without compromising coverage, follow these smart tips:

1. Compare Different Policies: Always compare quotes from multiple insurers before purchasing or renewing.
2. Opt for Voluntary Deductibles: Pay a small share of claims voluntarily to reduce your premium.
3. Renew on Time: Avoid policy lapses to retain your NCB benefits.
4. Choose the Right IDV: Selecting a balanced IDV ensures affordability and adequate coverage.
5. Avoid Small Claims: Save your NCB by avoiding minor claims that you can handle out-of-pocket.
6. Install Anti-Theft Devices: Insurers offer discounts for ARAI-approved security systems.
7. Bundle Insurance Policies: If you have multiple vehicles or home insurance with the same insurer, ask for a bundled discount.

How to Buy Bike Insurance Online

Buying bike insurance online is convenient, fast, and transparent. Here’s the step-by-step process:

1. Visit the official website of an insurance company or aggregator.
2. Enter your bike registration number and personal details.
3. Choose the type of policy and coverage amount.
4. Customize your plan with add-ons (if desired).
5. Review the premium quote and make payment online.
6. Download the soft copy of your policy instantly.

Online purchase eliminates the need for paperwork and allows you to compare multiple options before making a decision.

How to Renew Your Bike Insurance Policy

Renewing your policy on time ensures continuous protection and keeps you legally compliant. The process is simple:

1. Visit your insurer’s website.
2. Enter your policy number or registration details.
3. Review and modify your coverage if needed.
4. Pay the renewal premium online.
5. Receive your renewed policy instantly via email.

If your policy has expired, you might need a vehicle inspection before renewal, so it’s best to renew before expiry.

Importance of Renewing Bike Insurance on Time

Timely renewal is crucial for several reasons:

• Avoid penalties for riding without valid insurance.
• Retain your accumulated No Claim Bonus.
• Ensure continuous coverage without inspection delays.
• Prevent financial loss during unforeseen events.

Even a one-day lapse can make you ineligible for NCB discounts, so set reminders to renew in advance.

Bike Insurance Price for Electric Two-Wheelers

With the rising popularity of electric bikes and scooters in India, insurers now offer tailored plans for them.
The premium for electric bikes depends on factors such as motor power (kW), battery type, and market value.

Generally, electric bike insurance prices are slightly lower than petrol counterparts due to lower maintenance costs, though battery replacement risks are considered during pricing.

Why Bike Insurance Is Important Beyond Legal Requirements

Many people purchase insurance only to fulfill legal obligations, but its true value lies in financial protection.
Here are reasons why every bike owner must have valid coverage:

• Protects against expensive repair or replacement costs.
• Offers compensation in case of theft or total loss.
• Covers legal liabilities toward third parties.
• Provides peace of mind during accidents or breakdowns.
• Allows you to focus on recovery instead of financial strain.

Common Mistakes to Avoid While Buying Bike Insurance

1. Choosing the Cheapest Plan: Low-cost policies may exclude essential coverages. Focus on value over price.
2. Ignoring Add-Ons: Skipping useful add-ons might lead to heavy out-of-pocket expenses later.
3. Incorrect IDV Selection: Choosing too high or too low IDV can either increase your premium or reduce claim amount.
4. Not Comparing Insurers: Each insurer has different pricing and claim processes; comparison ensures the best deal.
5. Failure to Read Policy Terms: Always read inclusions, exclusions, and claim conditions carefully.

How Claim Settlement Works

When you face an accident or damage, filing a claim properly ensures a smooth settlement.

Steps to File a Bike Insurance Claim:

1. Inform your insurer immediately.
2. File an FIR if theft or third-party damage is involved.
3. Submit claim documents (policy copy, RC, license, repair estimate, FIR).
4. The insurer inspects the vehicle and approves the claim.
5. Settlement is made directly with the garage (cashless) or reimbursed later (reimbursement claim).

Choosing an insurer with a high claim settlement ratio ensures reliability during emergencies.

Bike Insurance Price: Key Takeaways

• Third-Party Insurance is mandatory, while Comprehensive Plans offer full protection.
• Premiums depend on factors like IDV, bike type, age, and add-ons.
• You can calculate the price online before purchasing.
• Use NCB, deductibles, and online renewal to reduce costs.
• Always compare insurers to find the best coverage at a fair price.

Investing in a comprehensive two-wheeler insurance policy is not just a legal necessity but also a smart financial decision. It ensures safety, convenience, and long-term savings.

Frequently Asked Questions (FAQs)

Q1. What is the minimum bike insurance required in India?

Every bike owner must have Third-Party Liability Insurance to legally ride on Indian roads. It covers damages to another person, vehicle, or property.

Q2. How much does bike insurance cost in India?

The price varies from Rs. 500 to Rs. 10,000 annually depending on the type of coverage, bike model, engine capacity, and chosen add-ons.

Q3. Can I reduce my bike insurance price?

Yes. You can lower your premium by maintaining a claim-free record (to earn NCB), installing anti-theft devices, opting for voluntary deductibles, and comparing multiple quotes.

Q4. What happens if my bike insurance policy expires?

If your policy expires, you lose coverage and NCB benefits. You must renew it immediately, often after vehicle inspection if lapsed for long.

Q5. How is the bike insurance premium calculated?

Premium depends on several factors like IDV, engine capacity, location, age of bike, and add-ons. Use online calculators to estimate it accurately.

Q6. Is zero depreciation cover worth it?

Yes, for new or expensive bikes, it’s highly recommended. It ensures you get the full claim amount without depreciation cuts on replaced parts.

Q7. Does bike insurance cover theft?

Yes, Comprehensive Bike Insurance covers theft. The insurer reimburses the IDV amount after police verification and documentation.

Q8. What is the validity of bike insurance?

Typically, bike insurance is valid for one year, but you can also buy long-term policies for two or three years to save on renewal hassles.

Q9. Can I transfer my bike insurance when selling my bike?

Yes, the insurance policy can be transferred to the new owner after completing necessary paperwork and NCB adjustments.

Q10. Which is better — online or offline bike insurance purchase?

Buying bike insurance online is better as it’s faster, paperless, and allows you to compare multiple insurers to get the best price and coverage.

Final Thoughts

Understanding bike insurance price and how it is calculated helps you make smarter financial decisions while ensuring complete protection. Whether you own a simple commuter bike or a high-end superbike, choosing the right plan gives you peace of mind against unexpected mishaps.

Always remember — the goal isn’t just to buy the cheapest insurance but to get the right coverage at the best value. Regular renewals, claim-free years, and careful selection of add-ons can make your bike ownership safe, affordable, and worry-free.