Two-wheelers are subject to depreciation. Wear and tear can reduce the value of your bike as it ages. This will affect your insurance rates. Save money on buy bike insurance by buying it online Understanding the impact of depreciation on your two-wheeler’s insurance premium will help you manage costs and ensure that you are adequately covered. This article will examine the impact of depreciation and give you some tips to manage it.

Depreciation and Your Two-Wheeler Premium

The value of a two-wheeler is highest when you purchase a brand-new one. As time goes on, the value of a two-wheeler decreases because of various factors such as age, wear and tear, and market conditions. Depreciation is the term used to describe this reduction in value. It affects insurance rates in many ways.

Depreciation and IDV

The insured declared value (IDV), is the maximum payout that your insurer will make in the event of a total loss or theft. IDV is calculated based on your bike’s market value at the time of purchase minus depreciation. Your insurance premium can be affected by the IDV of your bike decreasing as it ages.

Premium Calculation

The insurance premium is calculated by taking into account several factors such as the age, model, and make of the bike, its usage, the location, and the driving history and age of the rider. The IDV of the bike is used to calculate the premium. The premium is higher if the IDV of the bike is higher.

Claim Settlement

The amount you receive in the event of a claim will depend on the IDV of your bike at the time the claim was made. Depreciation can cause the IDV of your bike to decrease, and you could receive a payout that is not enough to cover repairs or replacement.

How To Manage The Impact Of Depreciation On Your Two-Wheeler Premium

You can manage the impact of depreciation on your two-wheeler’s insurance premium. Here are a few tips:

How to Choose the Right IDV

It is important to choose the right IDV in order to manage the impact of depreciation. It may seem tempting to reduce the IDV in order to lower your premium. However, this can lead to underinsurance if you have to file a claim. A higher IDV will increase your premiums unnecessarily. To achieve a balance, choose an IDV which reflects your bike’s market value and offers adequate coverage.

Select Add-ons

Add-ons can be added to your policy as optional coverage for a premium. Add-ons like engine protection, zero depreciation, and roadside assistance are popular. These add-ons help manage depreciation as they provide additional coverage for certain parts or components.

Maintain your bike

Regular maintenance will help to prolong the life and value of your bike. You can keep your bike in good shape and avoid major repairs. This will reduce the chance of an insurance claim and help maintain its value.

Compare Quotes

Bike insurance online  Premiums can differ significantly between insurers. Comparing quotes can help find the best deal. Compare apples-to-apples, that is, compare similar coverage, deductibles, and limits.


Depreciation can impact your insurance rates in several different ways. Understanding how depreciation affects your insurance premium and taking steps to minimize its impact will help you get adequate coverage for a reasonable price. Depreciation can be managed by choosing the right IDV and adding add-ons to your policy, as well as maintaining your bike and comparing insurance quotes. Review your insurance policy regularly to make sure it is still adequate and meets your needs.