Motorcycle Insurance Advanced
Definition of a Motorcycle for Insurance Purposes
There’s very little chance of mistaking a standard motorcycle for anything other than what it actually is. There are, however, plenty of motorcycles that get redesigned, customised and modified to such an extent that they would outwardly appear difficult to classify, especially when it comes to buying the insurance for them. But in the world of motorcycle insurance it’s all very straight forward and the rules of classification are crystal clear. The definition of a motorcycle is simply any two wheeled vehicle that is powered by a mechanical engine. This two wheeled vehicle can also include a side car or a trailer. However, a three wheeled vehicle will also be classed as a motorcycle if any two of its wheels are found on the same axle.
Motorcycle Insurance Policy Types
Third Party Only is the most basic of the three policy types. It only gives the motorcyclist cover for injury to others (including pillion passengers) and damage to property. It does not cover any repair costs to the motorcycle or its replacement if stolen.
Third Party, Fire and Theft policies give the motorcyclist the legally required third party liability cover, plus it also insures the bike against fire and theft.
Fully Comprehensive is normally the most expensive insurance you can buy for your motorcycle. However, it does cover the loss or theft of the bike plus any repairs needed for damage sustained in an accident. Fully comprehensive also incorporates everything that is included in a third party, fire and theft policy
Motorcycle Insurance Pay as You Go
With the pay as you go system being a success story for car insurers it was only a matter of time before the idea was applied to motorcycle insurance. Consequently, some insurers now offer the choice of buying their motorcycle insurance on a pay as you go option rather than having to buy it for the whole year. These policies are paid for on a monthly basis enabling the policyholder to have complete flexibility over the length of time they require the insurance. To keep the insurance valid is simply a case of paying the monthly premiums for as long as it is required.
The advantage of this is that it allows you to stop and start your motorcycle insurance to suit your needs, and also enables you to receive the benefits that insurance companies often attach to these kind of schemes. One that is often featured with the pay-as-you-go concept is the bonus accelerator. With this you get rewarded a one years no claims discount for keeping the insurance policy open for a period less than a year. So, for example, you might find 8 months of insurance bought on a pay as you go basis will actually reward you with a one year’s no claims discount.
Taking Your Motorcycle Abroad
All motorcycle insurance will give some basic cover for traveling in Europe. It does, however, require the country you are visiting to be part of the EU, and if it is you are automatically insured for the minimum amount demanded by the laws of that country. Though, if you prefer, you are normally able to increase the level of insurance for the duration of any travels by asking your insurance company. However, in most cases you will be expected to pay a small extra charge for doing so, but it will bring your insurance levels up to the same as they are in the UK. If anything, the risk of accident and theft abroad is far higher, so it can be quite reassuring to know that you have an insurance policy that won’t let you down while you’re traveling abroad.
If you have ever traveled through Europe in the past you may have been advised to take with you an Insurance Green Card. This was once a necessity in EU countries to prove you had insurance cover, but it is no longer required as your insurance certificate and policy schedule are now considered valid proof of having the legal minimum insurance for those countries. But, if you are taking your motorcycle to Europe, do remember to pack these documents because if you are involved in an incident you will have a lot of explaining to do if you cannot easily produce them.
Motorcycle No Claims Discount
Possibly one of the most important aspects for getting cheaper motorcycle insurance is the No Claims Discount. Although it generally won’t reach the same levels as that of car insurance, you will normally still find insurers offering you as much as 50%. The way you build a motorcycle no claims discount is exactly the same as it is for a car. You will need at least 12 months to elapse without making a claim on your insurance before you can even begin on the discount ladder. The following claim free years will then see your discount increase until it reaches the maximum of 50%, or whatever the insurers happen to be offering.
As with car insurance you can normally protect yourself against losing your motorcycle no claims, but there will obviously be a small extra charge for this privilege. It is worth it though, as a no claims discount is one of the most valuable tools in reducing the overall cost of motorcycle insurance.
Motorcycle Insurance Tip
Motorcycle No claims Discount is non-transferable and very rigidly fixed to the named person on the policyholder. In that respect you cannot gift it to another person as each individual has to build up their own discount. Also, if you have both car and motorcycle insurance then these are treated as different entities, and you will have to build a separate no claims discount for each.
Optional Legal Expense Cover
Many motorcycle insurance policies have optional extras you can add on to further increase the amount of cover, and these are generally offered to you when you buy the main policy. One such addition is legal expense cover. This additional insurance will cover you for any legal costs that may arise from claims where the accident might not have been your fault. This also has the great advantage of ensuring your no claims discount remains intact. If you are unfortunate enough to be involved in an incident then legal expense cover will ensure you get appointed a professional representative to carry you through any proceedings and negotiations.
Be aware, though, that despite professional representation you still have obligations to meet, and one of these is to inform the insurers immediately of any settlement payments made in respect of the claim. However, this and any other responsibilities that fall on you are always stated in the small print, so do read them carefully for failing to uphold your side of the contract could nullify the entire insurance policy.
There are often exclusions found in Legal Expense Cover, and one of the most common ones is when your motorcycle is used for other purposes. For example, you will normally find exclusions in legal cover when the motorcycle is used in competitions, speed trials and rallies etc.
Insurance Tip
If you know you’re going to be using several different motorcycles then a multi bike policy could very well be your best choice. This allows the policy holder the flexibility to add extra motorcycles onto one insurance policy.
What You Need to Inform Your Motorcycle Insurance Company About
Nobody expects a keen biker not to tinker with his machine, but there are several things often done in all innocence that can actually be classed as alterations. Under your insurance policy conditions you have a duty to disclose any changes made to your motorcycle, so therefore you would have to tell the insurance company about these. This could be anything from tweaking the engine to enhance it’s performance to making slight cosmetic changes to the bike’s bodywork, for example. Basically, anything you change or enhance that wasn’t already standard when the motorcycle came off the production line. Of course, the biggest fear is that this will push up the price of the insurance, but this isn’t always the case and quite often you will find it does not affect the insurance in any way at all.
You are also expected to inform your insurance company if you change the usage of the motorcycle. For example, by adding a trailer and then using it to make deliveries could result in the motorcycle falling into an entirely different category, so in cases like this you are duty bound to disclose this information.
Also, if you are allowing other riders to use your motorcycle then you need to inform the insurance company of this as well. By naming them on the insurance you have covered yourself in the event of one of them being involved in an incident, and once again you will also have fulfilled your legal obligations attached to the insurance.
Insurance Tip
If you have a motorcycle stolen while the keys are still in the ignition then you will normally have a difficult time when it comes to making a claim, so remember to always remove keys and secure the motorcycle to the best of your ability. This way if the worst happens and it does get stolen you will not have to argue your case with the insurance company.
Reducing Your Motorcycle Insurance Premium
In most cases motorcycle premiums are dependent upon individual circumstances, however there are a few things you can do in order to keep insurance costs to a minimum. For a start you could limit the usage of your motorcycle. For example, if you have other transport you could choose to use this and the motorcycle only at weekends, and by doing so you may well be offered a limited mileage discount from the insurance company.
When choosing a motorcycle try and avoid the high powered ones. A sports bike compared to a standard cruising one will bring with it higher risks on the road, therefore the insurance company will need to cover those risks by making the insurance premium more expensive. Finally, consider the security of your motorcycle and reduce the risk of it being stolen as much as possible. By safely storing it off-road or in a lock-up overnight you will have made it much harder to steal, and by doing so the insurers will probably offer you much cheaper insurance.