Does the Cost of Two-Wheeler Insurance Decrease As Your Bike Ages?


Owning an old bike can be a source of great sentimental value, whether it is the first bike you bought from your first job or an inheritance from your grandfather. The nostalgic feelings it evokes are irreplaceable, and that is why, even in today’s era of modern motorcycles, many riders are still drawn to the timeless charm and classic appeal of these old bikes.

But, has it ever occurred to you how two-wheeler insurance for these beauties works? Do they need a comprehensive bike insurance plan? Does the cost of two-wheeler insurance decrease as the bike ages? And much more. If you need answers to these, keep reading.

Aspects Considered While Calculating the Cost of Your Bike Insurance

The insurance cost of your two-wheeler depends mainly on the following factors.

Factors Explanation
Insurance provider The company you choose for getting your bike insurance
Engine capacity The power and size of your two-wheeler engine.
Insured Declared Value The estimated market value of your bike.
Insurance coverage type The extent of coverage, like Comprehensive insurance.
Age of the Bike The year in which your bike was manufactured
Location The place where you live as it affects risk and potential claims.
Bike Model The specific make and model of your bike.
No Claim Bonus The discounts you get for not making any claims in previous years.

The Relation between Two-wheeler Insurance Cost and the Age of the Bike

Reduced insurance premium as the bike ages

As your bike ages, it loses its value due to regular wear and tear, which is also known as depreciation.

Further, the estimated market value of the bike will also be less as it ages. Therefore, in case of any damage, you will get compensation based on your IDV, so considering all these factors, such as your depreciation and deductible, the bike generally has lower bike insurance costs. Moreover, the cost may further decrease if there is no claim bonus for not claiming during the insurance term.

Increased insurance premium as the bike ages

While insurance premiums for older bikes typically decrease due to depreciation, several factors can influence premiums and may result in a higher insurance cost for your two-wheeler. The higher maintenance cost for the old bikes, increased risk of accidents and limited availability of the  older bike’s parts are the prime contributors to the increased premium amount.

Hence, insurance providers do not depend on a single aspect and consider various factors while determining premiums. The bike’s conditions, maintenance history and risk factors involved play a crucial role. Thus, having insurance for an ageing bike is more than just a financial decision.

Benefits of Having Bike Insurance Policy for Old Bikes

Whether you’re riding a bike that is old or new, it is important to have bike insurance. Following are some of the benefits of having two-wheeler bike insurance for an old bike-

  1. You get coverage if you encounter accidents, fire, theft, or natural disasters due to your old bike.
  2. Whether you are riding an old or new bike, you need to have third-party bike insurance. Your bike insurance policy for old bikes can help you adhere to the mandatory requirement and save you from getting penalised..
  3. With third-party bike Insurance, you get third-party coverage, that is,  coverage against third-party injury or damages to their property caused by your bike.
  4. Your two-wheeler insurance also gives you coverage against injury through Personal Accident coverage, offering you financial security in case of accidents.


In conclusion, while the cost of two-wheeler insurance generally decreases as a bike ages, several factors may add up to the cost of bike insurance. Therefore, it’s essential to consider all the factors mentioned above and shop around for insurance options that best suit your old bike’s needs and your budget.

Frequently Asked Questions

1. Can I insure a 15-year-old two-wheeler?

Yes, you can definitely insure your 15-year-old bike. Since third-party bike insurance is mandatory, you at least need it. You can also get comprehensive coverage if you want from a trusted insurer such as Tata AIG.

2. My old bike’s insurance has lapsed. Can it be insured now?

Yes, you can still insure your bike even if the previous insurance lapsed. All you need to do is provide a few details about your bike, such as its registration number, manufacturing date, etc. Remember to renew your insurance at least 90 days before it expires to avoid inconvenience.

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