Motorcycle insurance is similar to car insurance in many respects, with similar kinds of policies and it pays to shop around. There are a number of different insurers and policies, ranging from third party property to full comprehensive insurance.
Here are some of the policies you might consider for your motorcycle:
- Comprehensive Motorcycle Insurance – covers your bike for accidental damage cause by you or another party, theft and loss. The policy also includes $20 million liability cover for any damage incurred to a third party’s property.
- Named Rider – a policy with a reduced premium, at the expense of restricting cover to a single nominated rider. Ideal to reduce the premium for sole operators.
- Third Party Property Damage – covering the rider for damage caused to another party’s vehicle or property, up to $20 million. This is generally a little cheaper than third party property insurance for cars, as motorcycles are smaller and likely to cause less damage.
- Third Party Property, Fire and Theft – incorporates third party property, theft and fire cover. Ideal for riders who don’t think their motorcycle is worth comprehensively insuring and are generally safe riders
Case Study
Here is a comparison between two drivers and two different policies:
Cameron is a young rider under 25 with 2 years riding experience. To comprehensively insure his 1996 Kawasaki Kx 125 for $5000 it would cost around $1500 per year. While third party property damage insurance would only cost Cameron around $200 per year.
Jack is 40, also with 2 years riding experience. To comprehensively insure the same motorcycle, a 1996 Kawasaki Kx 125 for $5000, it would only cost Jack around $550 per year. Third party property damage insurance would cost $150 per year.
This shows that the cost of the policy is drastically altered by the kind of policy and the age of the rider. These are two of the most important considerations when choosing an insurance policy.
Motorcycle insurance tips
Here are some basic tips to keep in mind when researching and choosing the right insurance policy:
- The make of your motorcycle and its engine capacity, your age, driving record and the particular insurer will determine the cost of the policy.
- Some theft policies will only cover you if the motorcycle is stolen from a locked and secured, nominated premise.
- Shop around and look for bonuses, for instance replacement of a brand new motorcycle if it’s written off in the first 24 months, or covering some of the cost of damaged riding gear (helmet, jacket etc)
- Take advantage of online motorcycle insurance calculators – these calculators while not giving you an exact figure on your insurance can be used as a helpful guide to differentiating between policies.
- No claim discounts can often save you a lot of money (sometimes up to 60%). These reward safe drivers and some insurers offer a transfer of a previous no claim discount.