How CC Impacts Your Bike Insurance Premium

When buying bike insurance, several factors determine the premium you need to pay. One of them is the CC (Cubic Capacity) of the bike’s engine. Whether you are a first-time buyer or an experienced rider, understanding how CC affects your insurance policy can help you make an informed decision.

In this blog, we will explore what CC is, how it affects your bike insurance premium, and other factors that influence the cost of your policy. You should have a clear understanding of what is the meaning of cc in bike and how to manage your bike insurance to get the best value for money.

What is CC in Bike?

CC stands for Cubic Capacity, which refers to the size or volume of a bike’s engine, measured in cubic centimetres (cc). The engine's cubic capacity is an important aspect of your bike's performance and capabilities. In simple terms, it indicates how much space is available inside the engine for the fuel-air mixture to combust. It directly correlates with the power and speed of the bike.

Key points about CC:

• Higher CC = More Power: Bikes with higher CC generally have more power, which means they can achieve higher speeds and perform better, especially on highways or long-distance travel.
• Smaller CC = Lower Power: Bikes with lower CC engines are typically designed for city commutes. They are more fuel-efficient but have less power.
• Classification of Bikes based on CC:

○ Under 150cc: Commuter bikes with lower engine capacity, high fuel efficiency, and affordable premiums.

○ 150cc to 400cc: Mid-range bikes offering a balance between power and fuel efficiency.

Above 400cc: Sports or high-performance bikes that deliver high power but come with higher maintenance and insurance.

The Role of CC in Your Bike's Performance:

• Performance: Larger CC engines typically offer better acceleration and speed, making them ideal for long-distance drives and fast riders.
• Fuel Efficiency: Smaller engines are generally more fuel-efficient and better suited for short, city commutes.
• Insurance Risk: Higher CC engines are often considered by insurance companies as riskier due to the possibility of higher speeds, increased likelihood of accidents, and expensive repairs.

How Does the CC of a Bike's Engine Affect the Insurance Premium?

The CC of the bike plays a significant role in determining the insurance premium. Here’s why:

1. Higher CC Leads to Higher Premiums:

• More Power, More Risk: Insurance companies calculate premiums based on risk. A bike with a high CC engine is considered higher risk because it can reach higher speeds and is often used for more adventurous riding. This increases the likelihood of accidents or damage, making insurers charge a higher premium to cover these risks.
• Cost of Repairs: Bikes with higher CC engines typically have more expensive parts and are costlier to repair in case of an accident. This higher repair cost is reflected in the premium.

2. Larger Engine Capacity = Higher Maintenance Costs:

•         Bikes with higher CC engines generally have more complex engines and advanced technology. Maintenance costs are higher, and the cost of spare parts is often more expensive compared to smaller CC bikes. This is another factor that insurers consider when setting premiums.

3. Age and Model of the Bike:

• Newer bikes with larger engines generally attract higher insurance premiums due to their higher market value and repair costs. Additionally, newer models may come with advanced technology, which can increase the cost of repairs or replacement in case of an accident.

4. Insurance Types:

• If you choose a comprehensive policy (which covers both damage to your bike and other vehicles), the premium will be higher for a larger CC bike. Third-party policies, which only cover damage to third parties, may have slightly lower premiums, but a high-CC bike will still be more expensive to insure.

Other Factors Which Affect the Insurance Premium

While the engine CC plays a key role in estimating the insurance premium, several other factors also affect how much you will pay for bike insurance. Let’s explore these:

1. Age of the Rider

• Young Riders: If you are under 25, your insurance premium may be higher due to the perceived risk that younger riders are more likely to be involved in accidents.
• Experienced Riders: Riders over 30 with a good riding history may benefit from lower premiums, as they are perceived as less risky.

2. Riding History

• Accident-Free Record: Riders with no history of accidents or traffic violations are often eligible for discounts on their premiums.
• Traffic Violations: A history of accidents, speeding tickets, or insurance claims can lead to higher premiums as the risk factor increases.

3. Type of Coverage

• Comprehensive vs. Third-Party: Comprehensive coverage, which covers both your bike and third-party damages, comes with higher premiums compared to third-party-only insurance, which only covers damages to others.
• Add-ons: Add-ons such as engine protection, roadside assistance, or zero depreciation cover can also increase your premium.

4. Bike Security

• If your bike has added security features such as alarms, GPS tracking, or a strong anti-theft system, you may be able to lower your premium. These features reduce the risk of theft, making the bike less risky to insure.

5. Location

• Your place of residence also affects your premium. If you live in an area with higher traffic, a higher crime rate, or more frequent accidents, your premium may be higher. On the other hand, bikes insured in rural or less populated areas may attract lower premiums.

6. Bike Usage

• Daily Commute: If you use your bike for daily commuting, especially over long distances, your premium might be higher due to the increased risk of accidents.
• Occasional Use: If you only use the bike on weekends or for leisure, you may be eligible for a lower premium.

Conclusion

Effective cost management requires understanding how your bike's CC impacts your insurance rate. Higher-CC bikes, which offer more power and speed, often have higher premiums due to the increased risk and repair costs associated with them. However, bike insurance premiums are also influenced by several other factors, including the rider’s age, riding history, the type of coverage selected, and the bike's security features.

Before choosing a bike and finalising your bike insurance online, it’s important to consider both the CC of the engine and other factors, such as your riding habits and bike usage.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.