Knowledge Centre

Cost of ownership of bikes

Published on Januray 21, 2020. EST READ TIME: 5 MIN

In India, the most convenient and easily affordable mode of transportation is two-wheelers. Two-wheelers are lightweight, easy to maneuver, and save a lot of time during commutation. Moreover, riding a two-wheeler is adventurous and can act as a stress buster especially in the case of bikes. Riding bikes has become a passion among the younger generations which adds some thrill and excitement into their lives.

Your excitement and joy know no bounds when your new two-wheeler is about to be purchased. You would have made various plans about going on rides along with your friends, having fun, and exploring new places. However, another important factor that must be kept in mind while purchasing your new two-wheeler is the two-wheeler insurance policy. Third-party two-wheeler insurance is mandatory in India for taking your two-wheeler on to the roads. In addition to the third party two-wheeler insurance, the comprehensive insurance policy will help in providing all-round protection to your two-wheeler.

Third-party two-wheeler insurance will help in covering the damages caused to third party vehicles or injuries caused to third party persons due to an accident in which the insured two-wheeler was involved. Moreover, a comprehensive two-wheeler insurance policy helps in covering the vehicle against any damages caused due to natural calamities or manmade calamities.

Factors determining the cost of ownership of bikes

The cost of ownership of your new two-wheeler or new bike is mainly determined by the below-mentioned factors.


The protection provided by the two-wheeler insurance policy remains active only when the insurance premium is being paid continuously. The insurance premium of your bike is mostly decided based upon its capacity (cc). Other factors that can determine the insurance premium can be the age of the bike rider, the model of the bike, installation of safety devices, deductibles, etc. Some insurance types do not consider depreciation as a factor and hence have a high premium.

According to the new norms of IRDAI, new bike owners would have to purchase long term bike insurance i.e. for a period of five years.

Vehicle’s cc Long term third party insurance rates
Up to 75cc Rs. 1,045
Between 75cc to 150cc Rs. 3,285
Between 150cc to 350cc Rs. 5,453
Above 350cc Rs. 13,034


If you are planning to purchase a bike by obtaining a loan, then there are several banks which can offer you these loans. You should compare the rate of interest, the processing fees of the loan, and the EMIs involved. By the loans for the purchase of bikes, you will be able to obtain funds at nominal interest rates and also wider loan repayment period would be available. You should do thorough research, compare, and then apply for the loan according to your requirements.


The maintenance and servicing cost of two-wheelers or bikes in India depends upon the capacity (cc) of the vehicle.

Bike capacity Regular Servicing Price Breakdown Assistance Authorized Servicing
Up to 180cc Rs. 449 Rs. 200-Rs. 250 Rs. 500-Rs. 600
Above 180cc Rs. 549 Rs. 200-Rs. 250 Rs. 900-Rs. 1000


Usually, most of the two-wheelers or bikes lose 10%-15% of their value the moment they come out of the showrooms. Then, the value further depreciates by 10% of the actual value every year.

Relocation or transfer of bike

Relocation or transfer of bike can take place by cargo truck shipment or truck shipment. Train shipments are very economical and cost between Rs. 2000 and Rs. 5000. But train shipments are not reliable and safe for bike relocation. Cargo truck shipment is reliable and can be availed at a reasonable price as well. Depending on the cost of the bike, the relocation cost of bikes by cargo trucks ranges between Rs. 4000 and Rs. 8000 on an average.


Hence, with consideration for the above-mentioned factors, the total cost of ownership of bike for an average period of 5 years is approximately between 1.5 times-2 times of the actual price of the bike when it was in the showroom.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle".

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