Does Bike Insurance Renewal Get Costlier After 5 Years?

When you first buy a bike in India, motorcycle insurance might feel like just another expense. But as years roll by and you approach the five-year mark, many owners notice that the cost to renew their insurance seems to rise, sometimes sharply.

Types of Bike Insurance

In India, bike insurance are of the following three types:

• Third-party liability insurance: Mandatory under the Motor Vehicles Act; it covers damage or injury you cause to others.
• Comprehensive insurance: Includes third-party cover plus own-damage cover for your bike.
• Own damage cover: Covers damage to the insured bike and is available only with an active third-party liability cover.

Since September 2018, IRDAI (Insurance Regulatory and Development Authority of India) has mandated that new bikes must have third-party liability cover for 5 years, which can be paid in a single lump sum at the time of purchase. This means you won’t pay third-party premiums annually for the first five years if you choose the long-term option.

Does bike insurance premium get costly after five years?

Yes, insurance premiums get costlier with age. Here are the key reasons:

Parts availability

After the bike is older than 5 years, spare parts are tough to find, and even if available, they are more expensive. Manufacturers reduce or stop large-scale production of parts for older models once newer versions take over. So when something wears out, say, your headlamp assembly or a specific engine component, you may not find it easily at the authorised service centre.

For example, imagine you own a bike that’s been running smoothly for six years. One day, your clutch plates need replacement. The service advisor informs you that the parts have to be ordered, or worse, replaced with a costlier alternative. You end up paying more and waiting longer. Since insurance considers higher repair costs and limited part availability as increased risk, your premium or repair expenses can go up after five years, even if you have been a careful rider.

Poor servicing

Suppose you own a five-year-old bike and need a specific engine or suspension part. Since the original component isn’t available anymore, your workshop fits a cheaper, non-original alternative. Over the next few months, that part wears out faster and affects nearby components, or fails under regular use. You are back at the workshop again, paying for another repair and losing time. Over time, these repeated issues add up, making maintenance more frequent and expensive than before.

Introduction of new bikes

New bikes with features like ABS or traction control help keep your wheels stable, especially during sudden braking or slippery conditions. But if you are riding an older bike, there is a much higher chance the wheels can lock up, skid, and throw you off balance. That one difference can easily turn a near miss into a serious crash. On top of that, modern bikes come with stronger frames, better weight distribution, and smart alerts that help you react quicker on the road. When your bike doesn’t have these upgrades, insurers see a higher risk of major damage or injury if an accident happens. From an underwriting perspective, this places your bike in a higher risk category, which results in a higher insurance premium because the possible claim cost is quite greater.

Zero depreciation cover

Zero depreciation add-ons sound great when your bike is new because you don’t have to worry about the insurer cutting your claim amount due to part depreciation. But once your bike crosses the five-year mark, things start to change. From the insurer’s point of view, older bikes have more wear and tear, which increases the risk and cost of claims. That’s why you will either see a much higher premium for this add-on or find that it is no longer available.

Conclusion

So, does comprehensive bike insurance renewal get costlier after five years? It can, but not in every case. As your bike ages, own-damage premiums may rise, add-ons like zero depreciation may cost more or disappear, and annual TP renewals apply. However, maintaining NCB, comparing insurers, and choosing the right coverage can help you control premium increases.