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Guide on How Motorcycle Insurance is Calculated | Factors to Consider

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How Is Motorcycle Insurance Premium Calculated in Singapore?

Reading time: 6 mins

We released an ultimate guide to motorcycle insurance in Singapore few months back – you may want to check that out. The guide explains the types of motorcycle insurance, explains motorcycle insurance excess, some quick tips on how to find the right insurance, factors that affect the insurance premium, insurance renewal and so on.

In this article, we will talk about how insurance providers calculate your insurance premium for your two-wheeler. Read on.

There are three main cover types for motorcycle insurance – Third Party Only (TPO), Third Party, Fire and Theft (TPFT), and the Comprehensive plan.

Basically, your motorbike insurance premium depends on the choice of insurance cover type of the rider, along with other criteria that we have listed below.

There is no clear-cut formula but most insurance companies have an online calculator you can use to calculate your insurance premium. It’s important to note, that different insurance companies consider different factors.

Let’s look at some of the factors that would affect the insurance premium of your motorbike.

5 Factors Insurance Companies Consider When Calculating Your Motorcycle Insurance Premium


Your age is one of the principal factors insurance companies take into consideration to determine what your motorcycle insurance premium will be.

Riders in their 20s typically have to pay 75% higher than their older counterparts because accident statistics have shown that the ratio of younger riders (20 - 29 years old) involved in road accidents is much higher than riders in their 30s and 40s. Because of this, insurance companies increase their motorcycle insurance premiums to cushion the risks that are involved in insuring younger high-risk riders.

Riding Record

Insurance companies will check your past record as a rider to determine your motorcycle insurance premium. Have there been issues with speeding tickets or have you been in an accident before? If so, your motorbike insurance premium will likely be higher.

On the other hand, if you have a good NCD rating, it will be factored in when the insurer determines the amount of your motorcycle insurance premium.

The Type of Motorcycle

This goes without saying (but we will say it anyway); How expensive your motorcycle is will also likely determine how high your premiums will cost. 

Because high-spec motorcycles can cost the insurance company a lot more to repair or replace as compared to cheaper motorcycles on the market. The make and model of the motorcycle will therefore, impact your premium.

Remember the age factor we spoke about earlier? – How younger riders are likely to pay more; Taking that into consideration, we expect a rider that is 37 years old to pay less if he is using the same motorcycle as a 26-year-old.

But if the 37-year-old gets a more expensive motorcycle, say an exotic two-wheeler or a sports bike, he will likely pay a considerably higher amount for a comprehensive insurance cover. So, do keep this in mind when you decide to get your next bike.

Usage of the Bike

Is this a personal or commercial motorcycle? The bike's usage information is considered before the insurer decides the amount of premium you should pay.

Commercial motorcycle premiums will be a lot higher because of the frequency of use. In fact, some insurers in Singapore do not even provide cover for two-wheelers that are used for commercial purposes.

Insurance companies also calculate how often a privately owned motorcycle is used. If you use your motorbike daily, the premium will be higher compared to a rider that may not take the bike out for a ride every day.

Motorbike Insurance Excess

You can lower your motorbike premium if you choose to shoulder some risks. We call this an excess fee.

This is the amount you will pay upfront, before the insurance company pays for a claim. Say, if you pay an excess of $1000, and the damage on your motorcycle costs $7000. The insurance company will bear the balance $6000 in repair costs.

The higher the excess you’re willing to pay, the lower your motorcycle premium will be.

How to Use an Online Motorcycle Insurance Premium Calculator?

All the factors mentioned above are taken into consideration when determining your motorbike insurance premium. But how can you actually calculate what your premium will be?

Direct Asia has an online calculator that can help you calculate how much your motorcycle insurance premium would be, based on the information you give.

Fill in the correct information about the make and model of your motorcycle, your no claim discount rating and other information required to get an accurate quote.

Final Thoughts

Taking all things into consideration, it is certainly advisable to get premium insurance under the Comprehensive plan or at least, the TPFT insurance cover. That way, you can be sure that you and your motorbike are well protected, if you ever meet with an accident while riding.  Also, bear in mind that getting an exotic motorcycle or superbike may not be the best option for you because of the premium it requires. You may want to pick a more affordable motorbike with a lower premium and maintenance fee, especially if you are a new rider.