Best Insurance Plans for Bikes Under ₹1 Lakh

Posted on: Jul 4, 2025 | 3 mins | Written by: HDFC ERGO Team

Best Insurance Plans for Bikes Under ₹1 Lakh

It's important to protect your budget two-wheeler with an ideal bike insurance type to ensure legal compliance and safety on the road. The right policy will safeguard you against unexpected repair or replacement costs and legal problems. Bike insurance is more important than ever because of the rise in theft cases and accidents in India. This blog covers everything you need to know about the best two-wheeler insurance for budget bikes.

Understanding Insurance Needs for Budget Bikes

The Hero Splendor, Bajaj Platina, TVS Star City, and Honda Shine are some popular budget-friendly bikes that cost less than ₹1 lakh. Although these two-wheelers are inexpensive, they have the same insurance needs as more expensive bikes.

Many who buy their first bike often don't realise how important insurance coverage is for their vehicle. It gives you peace of mind while on the road. You can opt from the two insurance types-third-party liability and comprehensive policy, according to your needs. While the former is enough to comply with the traffic rules, it covers only the injuries caused to others and damages to their properties by your bike. It doesn’t protect your two-wheeler. To ensure complete safety, you should opt for the latter. Comprehensive bike insurance may have a high premium, but it covers theft and damages caused by accidents, natural calamities, and man-made disasters, while also providing protection against third-party liabilities.

Recommended Insurance Plans for Popular Bikes Under ₹1 Lakh

Different types of bikes under ₹1 lakh have varying insurance needs based on their specifications and usage patterns.

• For commuter bikes like Hero Splendor, Bajaj Platina, and TVS Star City, comprehensive insurance with zero depreciation and engine safety add-ons works best. Since these two-wheelers are used daily and face regular wear and tear. Zero depreciation ensures full claim settlement on parts without factoring in depreciation, reducing out-of-pocket repair expenses. Engine protection is valuable as commuters often ride in varied weather and road conditions.

• For scooters such as the Honda Activa, TVS Jupiter, and Suzuki Access, comprehensive scooter insurance with personal accident coverage for riders is the best option. Since scooters are often used for family transportation, extra personal accident coverage becomes important.

• For entry-level sports bikes under ₹1 lakh, like Yamaha FZ-S or Honda CB Shine, consider comprehensive coverage with return-to-invoice (RTI) and roadside assistance add-ons. These bikes have slightly higher repair costs and RTI ensures you get the original invoice value if the bike is stolen or damaged beyond repair. Roadside assistance is useful for longer rides.

• For electric two-wheelers under ₹1 lakh, specialised EV add-ons covering battery, charger, and motor are necessary. Electric bike insurance typically costs 10-20% more than standard policy but provides vital protection for the expensive electrical components.

Key Factors to Consider When Choosing Bike Insurance

Several important factors should be considered when choosing bike insurance for your budget two-wheeler.

• Coverage Type:

While third-party bike insurance is the minimum legal requirement and costs less, full coverage offers complete security. Assess your needs and choose the ideal one.

• Insured Declared Value (IDV):

It represents your bike's current market value and sets the maximum claim amount. For affordable bikes, IDV declines more rapidly due to higher depreciation rates. Ensure your IDV correctly represents your bike's current market value to avoid claim settlement problems.

• Claim Settlement Ratio:

This shows how quickly an insurer handles claims. Choose insurance companies with rates above 95% to ensure smooth claim experiences. A high claim payment ratio becomes especially important for budget bike owners who cannot afford claim delays or rejects.

• Network Garages:

A larger network of workshops means easier access to cashless repair facilities, which can lower out-of-pocket costs during emergencies. This is particularly important for budget bike buyers who may not have easily available funds for upfront payments.

• Add-on Covers:

Riders can improve your policy's value without significantly increasing rates. For budget bikes, consider adding zero depreciation cover, engine protection, and service assistance as optional extras.

Tips to Reduce Bike Insurance Premiums

Budget bike owners can apply several tactics to reduce insurance costs while keeping adequate coverage.

• Maintain a clean driving record by avoiding crashes and traffic violations. This helps you collect No Claim Bonus (NCB) benefits, which can reduce your premium by up to 50% over five claim-free years.

• Choose higher deductibles to lower your premium. If you're sure about your driving skills and can afford a higher out-of-pocket cost during claims, going for higher deductibles can reduce your annual insurance rate.

• Install anti-theft devices, such as immobilisers or GPS tracking systems. Many insurers give discounts on premiums for bikes equipped with ARAI-approved security devices, making this a smart investment for budget bike owners.

• Compare policies online before buying or renewing. Different insurers offer different rates for similar benefits. Spending time reviewing options can save you hundreds of rupees yearly.

• Avoid unnecessary add-ons that don't fit your usage needs. While riders improve coverage, budget bike owners should carefully evaluate which ones provide real value for their specific needs.

Conclusion

Choosing the best two-wheeler insurance for your budget bike requires matching the cost with proper coverage. While it may be tempting to opt for the cheapest third-party insurance, a comprehensive policy offers better value and peace of mind for a small additional cost. Take time to compare different insurance policies, understand policy terms, and choose coverage that meets your unique requirements and budget.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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