GST on Two-Wheeler Insurance Stays at 18% Through 2026
Two-wheeler insurance policies in India continue to attract the standard 18% GST rate through 2026, matching the rate applied to car insurance.
News · 1 min read · Published 24 July 2026
Written by Vivaan Kapoor, Bikes Editor
Highlights
- Two-wheeler insurance premiums continue to attract 18% GST through 2026
- This matches the rate applied to car insurance policies
- Add-on covers on two-wheeler policies are taxed at the same rate
Two-wheeler insurance policies in India continue to attract the standard 18% GST rate through 2026, matching the rate applied to car insurance and keeping the tax treatment consistent across vehicle categories. Add-on covers purchased alongside a two-wheeler policy are taxed at the same 18% rate as the base premium.
Given that two-wheeler premiums are generally smaller in absolute terms than car insurance, the same percentage GST rate translates into a smaller rupee amount, but the underlying tax structure and rate remain identical across both categories.
Owners renewing two-wheeler policies should factor this consistent 18% into their total expected premium, the same way car owners do.