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Motorcycle Insurance – An Introduction

If you’re looking for bike insurance it’s important to have a basic understanding of how the cover works so you can find a policy that not only provides value for money, but also offers all the protection you need.

What is bike insurance?

Bike insurance offers financial cover and peace of mind for you and everyone else on the road. Depending on the level of cover you take out, it could protect you against the cost of riding related damages and injuries, while also protecting you from fire damage, theft and other risks.

There are three levels of bike insurance available – these are:

Third party only: This is the minimum amount of protection available and is required by law. It protects the policyholder against liability for damage and injuries to third parties; as well as damage to property.
Third party, fire and theft: Covers your own bike against fire, theft and damage from an attempted theft in addition to standard third party cover.
Comprehensive cover: Policies vary from insurer to insurer but will usually cover claims for damages to your motorbike in the event of an accident (subject to exclusions) and potentially accidental damage, medical expenses and more.

How do you know which level of cover is right for you?

As a rule of thumb, the more cover you take out, the better – however, if you ride a relatively inexpensive motorbike and premiums for comprehensive insurance are high then you may prefer a third party or third party, fire and theft policy.

If you do opt for comprehensive cover, there are a number of features to look out for that may be offered as standard by an insurer or may only be available for an additional premium. Think about which cover options are important to you before you shop around. These may include:

Breakdown cover – Some insurers offer breakdown cover as an add-on to a policy. Check to see what this includes – does it incorporate recovery/relay; home starts; onward travel; and cover overseas?
Equipment cover – Check the policy limits on protection for your helmet, leathers and other riding equipment.
Legal assistance – This covers legal costs if you are involved in an accident where a third party was at fault – legal professionals can help recover losses, such as for medical expenses and loss of earnings.

Riding other motorbikes – Are you covered to ride another person’s motorbike with their permission in an emergency situation?
Temporary replacement – If your motorbike requires repairs after an accident, will the insurer provide you with a temporary replacement?
Travelling in Europe – Before taking your motorbike overseas you need to ensure you have the correct documentation or you could face heavy fines.
Vandalism – Look for cover that protects your motorbike against acts of vandalism.

Once you have decided which features are important to you, there are some additional aspects to look out, including:

Excesses: Most insurers set a ‘compulsory excess’ – an amount you must pay towards the cost of any claim. In addition you can also choose to pay a ‘voluntary excess’ which is an additional amount you agree to pay when taking out the insurance policy should a claim ever be necessary. Setting the voluntary excess at a high level can cut premiums, but it should only be set at a level you can comfortably afford.
Exclusions: Check the terms and conditions for exclusions – these are instances in which a bike insurer will not offer a payout.
No-claims bonus: Most insurers offer a no-claims bonus – for every year you don’t make a claim you build up a discount up to a pre-determined limit. With some insurers it’s possible to protect this no-claims bonus after four or more years.

How much does bike insurance cost?

Premiums for bike insurance vary from insurer to insurer and are based on how they assess your risk – the more likely you are to make a claim, the higher your premium will be. To assess this risk they take into account factors including your claims history; personal circumstances, such as whether you are married, have any medical conditions, etc; your annual mileage; the number of riders on your policy; the vehicle’s security; your address – such as whether you live in a heavy traffic area; and the vehicle itself – how old it is, how you plan to use it, etc.

As quotes vary from insurer to insurer, it’s vital to shop around using a comparison website to get an overview of the deals available to you. There are also a number of steps you can take to cut premiums further – such as by enhancing the security of your motorbike; parking in a garage overnight; limiting the number of riders on your policy; agreeing to a mileage limit; building up a no-claims discount; raising your voluntary excess; and paying premiums annually to avoid interest charges.