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How Bike Insurance Can Impact The Resale Value Of Your Bike

Have you ever thought of selling off your old bike and purchasing a brand new one that your friend described? Or are you planning to move to a different city because of which you think it would be best to sell off your two wheeler to your friend? In either case, you should know how to acquire the maximum value while selling your old bike, in which bike insurance can help you immensely.

In this article, you can learn how bike insurance can help you get the best price on the resale amount, and also some other handy tips which can help you increase the selling price of your bike.

What is IDV in bike insurance?

In simple terms, the Insured Declared Value (IDV) is the price of your bike in the market. IDV is valid only under a comprehensive bike insurance policy. So, for example, let us say you purchased a bike at the cost of ₹2 lakhs two years ago. Today, the cost of your bike is ₹70,000. So, the IDV of your bike will also be ₹70,000.

However, you need to consider that the IDV is calculated based on the depreciation of your two-wheeler as per the manufacturer’s specifications and not on the value you can sell your bike. There might be a friend who is ready to purchase your bike at ₹80,000, but the IDV for your bike will remain to be ₹70,000.

When you buy online two wheeler insurance, you get the option of selecting the IDV. It is important that you state the IDV for your bike correctly as the claim amount you receive also depends on IDV. Your IDV is the highest amount which you can receive after you make a claim on your insurance. Be very careful to not select a higher IDV as it can lead to exorbitant premium as well as a rejection of claims. Low IDV will result in you getting lower claim settlement than the actual value of the bike in case of theft or total damage of your bike. You can use an insurance premium calculator for a two-wheeler to input the approximate IDV for your bike and calculate your premium amount.

Why is IDV so important from bike resale point of view?

Suppose your bike is stolen and never found, or even worse, you meet with an accident, and your bike is damaged beyond repair, the insurance company will reimburse the entire price of your bike as it is mentioned in the IDV of your bike insurance policy.

If you do not have comprehensive bike insurance, and if your bike is damaged badly in an accident, the resale value would be too low and the loss incurred would be too high to ignore.

Thus, having a valid bike insurance policy with a correct IDV helps you to claim the same amount in resale. Every insurance company is particular about the IDV in your two-wheeler insurance plan. For older bikes, the insurance company will send a surveyor to assess the correct IDV before offering the same in your insurance policy. As a result, the IDV mentioned in the insurance policy is the perfect parameter to judge the exact resale value for your bike. You can show your insurance policy to the prospective buyer and demand a resale value equal to the IDV in the bike insurance policy.

Factors Considered while Calculating IDV For Bike:

  • Make and model of your bike
  • Date of purchase
  • The city you registered your bike in
  • Type of fuel bike consumes
  • Age of bike
  • Bike policy period

Depreciation Rates for Bikes is Calculated as:

We saw that the market value for bikes depreciates with age. The following table is a uniform depreciation chart followed by leading insurance providers in India to determine the IDV for bike insurance:

Age of Bike Depreciation %
Below 6 months 5%
6 months to 1 year 15%
1 – 2 years 20%
2 – 3 years 30%
3 – 4 years 40%
4 – 5 years 50%

Bonus Tips to get good resale value for your bike:

Apart from comprehensive bike insurance with an IDV feature which will help you fetch the best price for your bike, here are some bonus tips which can help your bike appear worth buying to the interested party.

  • Keep Your Bike Clean: This is one thing you must first do when you decide to sell your bike. Even though, practically, factors such as engine power and mileage would matter more, psychologically the first thing a buyer would see is how the bike looks. So, to make sure you give a good “first impression of your bike”, you need to keep it clean and tidy.
  • Get Rid of Dents: Nothing is more annoying for a potential buyer than apparent visual dents on your bike. You need to get them fixed before showing it to your buyers. You can also consider repainting your bike to give it a fresh look.
  • Maintain your Paperwork: You might have changed insurance companies over the years when you used the bike. In all cases, it is best you maintain all the paperwork to ensure an easy transaction once you make a deal with the buyer. It would be wise to not opt for cheap two-wheeler insurance just to pay a lower premium amount. Also, consider two-wheeler insurance renewal for your bike or let the buyer know about it in case it has already expired.


We know it is difficult to bid goodbye to our bikes, especially our first motorcycle, which gave us plenty of fun travel memories. With comprehensive two-wheeler insurance and these bonus tips, you can find the best price for your two-wheeler companion in the resale market.

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