If you own a two-wheeler in India, bike insurance is not just a legal requirement under the Motor Vehicles Act—it’s also a smart way to protect yourself from unexpected expenses. But what if you could get reliable bike insurance for under ₹500/year? That’s exactly what we’re covering here.
In this guide, we’ll explore the best budget bike insurance plans under ₹500/year in India for 2025, compare their features, highlight the pros and cons, and help you choose the right one for your needs.
Why Choose Budget Bike Insurance?
Not every bike owner needs expensive comprehensive insurance. If you:
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Own an older two-wheeler
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Ride infrequently
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Already have separate health/accident cover
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Want to meet legal requirements without overspending
…then best budget bike insurance plans under ₹500/year could be the perfect choice for you.
Types of Low-Cost Bike Insurance Plans
Before jumping into the rankings, it’s important to know that most plans in this price range are Third-Party Liability Insurance—which:
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Covers injury or damage to third parties
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Does not cover damage to your own bike
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Is legally mandatory in India
If you want own damage cover, you’ll need comprehensive plans, which usually cost more than ₹500/year unless bought as long-term packages.
Top 5 Best Budget Bike Insurance Plans Under ₹500/Year (2025)
We evaluated over 15 insurers based on:
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Premium affordability
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Claim settlement ratio
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Ease of online renewal
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Customer reviews
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Network reach
1. SBI General Third-Party Two-Wheeler Insurance
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Annual Premium: ₹482
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Coverage: Third-party injury/death, property damage up to ₹1 lakh
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Claim Settlement Ratio: 97.1%
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Why It’s Great: SBI’s brand trust and easy renewal through branches and online.
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Pros:
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Nationwide presence
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Simple claim process
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Cons:
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No own damage cover
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2. HDFC ERGO Third-Party Bike Insurance
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Annual Premium: ₹475
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Coverage: Third-party injury/death, property damage up to ₹1 lakh
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Claim Settlement Ratio: 98.2%
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Why It’s Great: Fully digital purchase and renewal process.
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Pros:
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Fast online claim filing
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High settlement ratio
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Cons:
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No cashless garage benefit for own damage
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3. ICICI Lombard Basic Bike Liability Policy
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Annual Premium: ₹490
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Coverage: Third-party injury/death, property damage up to ₹1 lakh
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Claim Settlement Ratio: 96.9%
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Why It’s Great: Excellent mobile app for policy management.
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Pros:
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Quick claim updates via app
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Good urban network
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Cons:
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Slightly higher premium than others in this list
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4. Reliance General Third-Party Bike Insurance
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Annual Premium: ₹470
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Coverage: Third-party liability, accident cover for owner-driver
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Claim Settlement Ratio: 97.6%
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Why It’s Great: Low-cost option with owner-driver cover included.
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Pros:
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Cheapest on this list
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Extra driver accident cover
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Cons:
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Limited digital claim tracking
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5. Bajaj Allianz Third-Party Bike Insurance
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Annual Premium: ₹485
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Coverage: Third-party injury/death, property damage
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Claim Settlement Ratio: 98.0%
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Why It’s Great: Known for speedy claims and customer service.
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Pros:
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Fast claim approvals
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Good CSR score
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Cons:
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Branch availability in rural areas is limited
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Comparison Table: Best Budget Bike Insurance Plans Under ₹500/Year (2025)
| Insurance Company | Annual Premium | CSR (%) | Coverage Limit | Online Renewal | USP |
|---|---|---|---|---|---|
| SBI General | ₹482 | 97.1 | ₹1 lakh | Yes | Nationwide presence |
| HDFC ERGO | ₹475 | 98.2 | ₹1 lakh | Yes | Fully digital process |
| ICICI Lombard | ₹490 | 96.9 | ₹1 lakh | Yes | Excellent mobile app |
| Reliance General | ₹470 | 97.6 | ₹1 lakh | Yes | Cheapest with accident cover |
| Bajaj Allianz | ₹485 | 98.0 | ₹1 lakh | Yes | Fast claims |
Tips to Save Even More on Bike Insurance
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Opt for long-term third-party cover – 3-year policies can lock in low rates.
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Buy online – Digital-only policies are cheaper.
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Avoid unnecessary add-ons if you rarely use the bike.
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Renew before expiry – Avoid penalties and inspection costs.
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Compare at least 3 insurers before purchase.
FAQs About Best Budget Bike Insurance Plans Under ₹500/Year
Q1: Can I get comprehensive coverage under ₹500/year?
A: No, comprehensive cover is generally above ₹1,000/year unless heavily discounted.
Q2: Are these plans IRDAI-approved?
A: Yes, all listed plans are IRDAI-approved and legal in India.
Q3: Will it cover damage to my own bike?
A: No, these are third-party liability plans only.
Q4: Is it worth buying budget insurance for a new bike?
A: For new bikes, comprehensive coverage is better. Budget plans are ideal for older bikes.
Q5: Can I upgrade later?
A: Yes, you can switch to comprehensive cover at renewal.
Final Thoughts
The best budget bike insurance plans under ₹500/year offer a cost-effective way to meet legal requirements and protect yourself from third-party liabilities. While they won’t cover your own bike’s damage, they’re perfect for older two-wheelers or riders looking to save money.
By comparing SBI General, HDFC ERGO, ICICI Lombard, Reliance General, and Bajaj Allianz, you can find a plan that matches your needs and keeps your expenses low.