Just like Loans, the more you shop around, the better your chances of getting the best insurance rate. There are a billion insurance companies out there, so start by asking your home and auto insurance agent about motorcycle insurance. If the company doesn’t offer it, ask your neighbor with the shiny new Kawi Ninja what company he uses. Search motorcycle websites and forums for rider recommendations. Finally, with your list of ‘A’ and ‘B’ companies on hand, dedicate a day to call as many insurance agents as you can.
But wait!! There are some answers you’ll want to have ready once you’re talking insurance plans and rates with an agent. Here, a little preparation goes a long way in making the best impression (which results in an ideal rate) on an insurance agent. Know what they’ll ask before you pick up the phone.
1. Your Personal Liabilities
Just like with Auto insurance, your age and your driving record are key factors. Usually the older you are the cheaper you rates will be.But if you are new to operating motorcycles you will probaly be in a higher rate category until you gain some riding experience. Auto accidents do count when buying motorcycle insurance. Even if you are new to motorcycle, the accidents you had in your automobile will count against you. Therefore, the cleaner your driving record, the cheaper your insurance will be. Also, If you’re older but a first-time rider, you will likely have a higher rate. However, you might be able to offset that by investing in special DMV or motorcycle classes – just be sure to hang on to your certification for proof.
2. They know where you live
Working/living or driving in a high crime/ high accident area can greatly affect your rate. If you live and/or regularly drive in a high crime or high accident area, your rates will likely be higher than someone in a ZIP code with less crime and accidents. Have a plan for how you’ll store the bike. A garage, an alarm, or any other form of security for your parked bike is necessary no matter where you live. A bike that spends most of it’s time in an open, unsecured area is clearly a risk for any insurance company to take on.
3. The Bike
Just like in auto insurance, that glitzy, brand-spankin’ new model is going to cost more to insure that an older stock or basic bike.
4. How much you ride
If you live in the part of the country that has a definite riding ‘season’, make this apparent to your agent. By only using your bike for half the year, your mileage stays low and your rate usually will follow suit. Where you are driving to and parking your bike will influence your rate. If you have to keep your bike parked on a construction sit, your insurance may be increased due to the increased risk of injury to your bike.
5. Over Insuring
Avoid over-insuring, since you’ll never get more than the market value of your bike in the event of an accident. Bear in mind that the rate is not based solely on your bike, but also your lifestyle, your riding habits, and your history. Once that is out of the way, you need to pick an insurance plan.
3rd Party Liability: Insurance that covers other
people and their property in the event of an accident that is your fault. Instead of you personally paying for the damage to the other party’s property, your insurance pays the bill.
It doesn’t cover damage to you or your property. Most states require you to have at least liability insurance on your bike. Full Coverage Insurance: (also called “comprehensive”) is available in different amounts, and will cover you and your property in an accident, whether the event was your fault, someone else’s, or “no-fault”. Full coverage also extends to any passengers on your bike present in the accident.
Look into a combination of liability insurance and comprehensive insurance. This will provide you with the most coverage overall in the event of a mishap.
There is no reason to overpay one insurance company when another one is willing to give you a better deal. If an accident would occur you will get the same value for your bike regardless of what company you choose. B taking the time to find out how the insurance comany will view you, your bike, and your riding habits, you can learn how to save while still getting a great policy.
Essentially, know your basics, know what to expect, and make sure that you understand the details of any insurance package you are purchasing. Although no one wants to get in an accident, they happen to the best of us, and the whole experience can be a lot less painful if you've got a good insurance plan to back you up.
With so many providers out there the motorcycle insurance world can be a confusing one.To help you keep track of all the different policies out there here is a list of questions to ask as you shop around.
1.
Answer all questions truthfully. If you don't, your insurance become invalid in the event of a claim. Any intermediary (broker, company representative etc) should warn you of the consequences while you are getting a quote.
Answer all questions truthfully. If you don't, your insurance become invalid in the event of a claim. Any intermediary (broker, company representative etc) should warn you of the consequences while you are getting a quote.
2.
Find out the identity of the insurer from the broker. That way you are better able to compare prices, and if you have a complaint you can contact the Chief Executives of both the broker and the insurer.
Find out the identity of the insurer from the broker. That way you are better able to compare prices, and if you have a complaint you can contact the Chief Executives of both the broker and the insurer.
3.
Check if there are any restrictions in cover. The most important one is the level of excess, which is the amount you will have to contribute in the event of a claim. This is usually about £250 and if it is above this the broker is under a moral duty to tell you what it is.
Check if there are any restrictions in cover. The most important one is the level of excess, which is the amount you will have to contribute in the event of a claim. This is usually about £250 and if it is above this the broker is under a moral duty to tell you what it is.
The cheaper the premium, the higher the excess. Some excesses depend on whether the bike is garaged or not, ask what the conditions are if your bike's nicked from a mate's house for example. Normally if you're not at home when your bike's nicked they'll pay out but there may be an increase in the excess.
4.
Check if there are restrictions in the number of named riders or bikes covered.
Check if there are restrictions in the number of named riders or bikes covered.
5.
Is legal cover offered? If so, how much are you being charged for it, and can you take it out later on in the event of a claim. It's a "nice little earner" for brokers.
Is legal cover offered? If so, how much are you being charged for it, and can you take it out later on in the event of a claim. It's a "nice little earner" for brokers.
6.
Find out what administration charges over and above the premium the intermediary is leveling. There can be significant differences between companies in the level of these charges.
Find out what administration charges over and above the premium the intermediary is leveling. There can be significant differences between companies in the level of these charges.
7.
How much is charged if you alter your policy in any way mid-term?
How much is charged if you alter your policy in any way mid-term?
Motorcyclists are far more likely to do this than car drivers and there can be significant hidden charges if you buy a new bike in the summer.
8.
If you're switching to a new company, find out what charges are levelled for new business. Also how much is charged at renewal?
If you're switching to a new company, find out what charges are levelled for new business. Also how much is charged at renewal?
9.
What are the cancellation charges - they can be excessive.
What are the cancellation charges - they can be excessive.
10.
If you have to make a total loss claim, for theft or a write-off, ask if your insurance will be cancelled.
If you have to make a total loss claim, for theft or a write-off, ask if your insurance will be cancelled.
11.
When you get the quotation back, check the small print very carefully ie agreed value, claims, no claims bonus, and convictions.
When you get the quotation back, check the small print very carefully ie agreed value, claims, no claims bonus, and convictions.
Some very small print includes: "if you change type of tyres from standard fitment that could invalidate your insurance."
12.
What's the amount and extent of any Personal Accident cover? Is there a
What's the amount and extent of any Personal Accident cover? Is there a
24 hours claims help-line?
What about free collection and delivery from repairer following a claim?
Is a courtesy vehicle provided when yours is being repaired? Are you covered for Europe? If so, for how many days a year?
13.
Why do I need motorbike insurance?
Why do I need motorbike insurance?
Bike insurance is a legal requirement for anyone riding a motorcycle on the road. It protects you against liability you may have if your bike is involved in an accident and damages another vehicle or injures another person.
14.
What if I ride my motorbike without insurance?
What if I ride my motorbike without insurance?
If you ride a motorbike without the correct insurance you are breaking the law and could face a fine, points on your licence, and could even have your bike seized by the police.
15.
What are the different types of motorbike insurance?
What are the different types of motorbike insurance?
There are 3 different levels of motorcycle insurance: third party, third party fire and theft, and fully comprehensive cover.
16.
What is third party motorbike insurance?
What is third party motorbike insurance?
Third party insurance is the cheapest option. It provides the basic motorcycle cover required by law and pays out for damage to someone else or their property if your bike is involved in an accident. However, it doesn't cover repairing or replacing your motorcycle.
17.
What is third party, fire and theft motorbike insurance?
What is third party, fire and theft motorbike insurance?
Third party, fire and theft insurance provides the same cover for your motorcycle as third party insurance, but in addition it covers the cost of repairing or replacing your bike if it's stolen or damaged by fire.
18.
What is comprehensive motorbike insurance?
What is comprehensive motorbike insurance?
This is the most expensive but most inclusive motorbike insurance. As well as having all the features of third party motorcycle insurance, it will cover repairs to your bike, the loss if it's stolen, and may offer additional features such as legal expenses cover.
19.
What factors will affect how much I have to pay for my motorbike insurance?
What factors will affect how much I have to pay for my motorbike insurance?
Your insurance premium will depend mostly on your age (the younger you are the more it will cost), the make, the power and capacity of your motorbike's engine and the area where you live.
Insurance companies will also take into account your driving record including previous accidents, claims and road traffic convictions. Factors will vary from insurer to insurer.
20.
What is a no-claims bonus?
What is a no-claims bonus?
If you have been riding a motorbike for some time without making a claim on your insurance then you may be entitled to a no-claims bonus. This is a discount on the cost of your bike insurance premium.
If you have a several years' experience without making a claim on your motorcycle insurance, some insurers will allow you to protect your no-claims bonus for a small additional premium. This allows you to make one or more claims on your bike insurance within a set time without losing your discount
21.
What is an excess?
What is an excess?
All motorcycle insurance policies will expect you to pay the first part of any claim, this is called a compulsory excess. How much this will be will depend on the individual policy and on the claim.
You may be able to reduce the cost of your motorbike insurance by paying a higher voluntary excess, an amount in addition to the compulsory excess. Generally speaking the more you agree to pay the cheaper your premium.
22.
How can I cut the cost of my motorcycle insurance?
How can I cut the cost of my motorcycle insurance?
There are various ways in which you can help cut the cost of your motorcycle insurance:
- keep your bike in a garage
- agree to pay a higher excess
- complete an approved advanced riding course
- fit security such as an insurance-approved lock and alarm, immobiliser or data tag identification and tracking system
23.
What extras should I consider when buying motorbike insurance?
What extras should I consider when buying motorbike insurance?
When looking around for motorcycle insurance quotes, you may want to choose a policy that includes:
- legal assistance to cover legal costs following an accident
- breakdown cover
- insurance for your helmet, leathers and other personal possessions
- no claims discount protection
- European cover, if you intend to ride your bike abroad.
24.
Will my helmet and leathers be covered by my motorbike insurance?
Will my helmet and leathers be covered by my motorbike insurance?
Probably not as part of the basic motorcycle insurance policy, although they may be covered on your home insurance policy. If not, you can take out specific cover for these for an additional premium.
25.
Can I get insurance for my classic motorcycle?
Can I get insurance for my classic motorcycle?
Yes. And the good news is that insurance for classic bikes from the 60s, 70s and 80s tends to be cheaper than insurance for modern motorbikes. This is because they generally attract fewer claims and classic bike owners usually cover less mileage.
26.
Will my motorbike insurance cover a pillion passenger?
Will my motorbike insurance cover a pillion passenger?
Motorcycle insurance policies used to automatically include cover for pillion passengers but now most insurers let you choose whether you want it included or not.
Opting not to cover pillion passengers can cut your premium by up to 10%, but if you intend to carry someone else on your bike then you must have the correct cover or you will be breaking the law.
Glossary
* Certificate of Insurance
The certificate is a document that proves you have valid insurance for your motorcycle. It includes who can ride the bike and what it can be used for.
* Claim
This is the formal application you make to your insurer for payment under your policy.
* Compulsory excess
The compulsory excess is the amount your insurer requires you to pay towards each claim.
* Cover
The risks your motorcycle insurance policy protects you against.
* Cover note
A document issued when you take out motorcycle insurance as temporary evidence that your bike is covered by the insurance.
* Cover type
Third party, third party, fire and theft or fully comprehensive.
* Excess
The amount you agree to pay of each claim.
The compulsory excess is the amount your insurer requires you pay, a voluntary excess is an additional amount you can opt to pay towards a claim to cut the cost of your premium.
* Exclusion
An event or circumstance in which the insurance company does not have to pay out under the policy.
* Fully comprehensive insurance
The most inclusive motorcycle cover available which, as well protecting you from liability to other people and their property, covers the cost of repairing or replacing your motorbike whether you are at fault or not.
* Immobilizer
An electronic anti-theft device activated when the ignition key is removed.
* Insurance schedule
The insurance schedule is a document that gives details of the cover you have and information that you have supplied to your insurer.
* Insured
The person whose motorcycle is insured, also called the policyholder .
* Insurer
The organisation that issues the insurance policy and pays any claims in exchange for an insurance premium.
* Market value
The cost of replacing your motorbike with another of the same make and model and of a similar age and condition at the time of the accident or loss.
* No-claims bonus/discount
A discount on your premium if you have ridden a bike for a length of time without making a claim on your insurance.
* Policy
The document setting out the legal rights and obligations of you and your insurer.
* Policy holder
The person whose motorcycle is insured.
* Premium
The amount you pay for your insurance.
* Protected no-claims bonus or no-claims discount
If you have a 4 or more years' no-claims bonus then you may be able to pay an extra amount and not lose your bonus if you make a claim.
* Renewal notice
The notice sent by the insurer to you as the policyholder inviting you to renew your policy.
* Sum insured
The total amount for which the motorcycle is insured.
* Third party insurance
The basic motorcycle insurance required by law. Third party only covers your liability for death or injury to someone else and your liability for damage to someone else's property.
* Third party, fire and theft insurance
Similar to third party insurance but third party, fire and theft also pays compensation if your motorcycle is damaged by fire or is stolen.
* Voluntary excess
An additional amount you can opt to pay towards a claim in order to cut the cost of your premium.
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