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Are you looking to insure your motorbike, moped or scooter?
Whether you ride to work every day or only go dirt biking on the weekends, you can find a motorcycle insurance policy to suit your needs. Compare motorcycle insurance policies and learn how to find the best cover for you.
Ready to compare motorcycle insurance and get cover?
What types of motorcycle insurance are there?
There are four main types of motorbike insurance available on the market:
- Compulsory Third Party (CTP) is your mandatory, bare-bones cover. If you only want to get on the road then this is the only thing you need. However, should an accident come your way, you may find yourself in dire straits as this only covers injuries to the people involved in the accident. Neither yourself nor any property is covered.
- Third Party Property Damage (TPPD) is your basic optional insurance, giving you a little more cover should trouble strike. This will cover damage and repairs to any property you might crash into, as well as any legal fees should you be dragged into court. Any repairs to your own bike will have to come out of your pocket. This is a good option if your bike is particularly old or cheap.
- Third Party, Fire and Theft covers everything that TPP insurance does, in addition to any damage from fire or theft to your own bike or to other people’s property. There is usually a limit on the amount of cover provided, often dependant on the value of your motorcycle.
- Comprehensive is your ‘no worries’ policy. This covers nearly all damage, whether that be accidental or your own fault. It also covers you for theft, fire, natural disaster, or if your bike was plucked up by mysterious forces and never seen again.
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What else should I be looking for in a policy?
Consider the cost of a policy and the cover offered, as well as the various extras and options available. Some of the extras you might find include:
- Helmet and riding gear cover. Your riding leathers, helmet and other gear can be expensive. A lot of policies can cover theft or damage of helmets and riding gear.
- Personal effects cover. Often found separate to riding gear cover, you may be able to find policies that let you insure personal effects carried on or in the bike.
- Agreed or market value. If market value isn't a fair reflection of your bike's true worth, for example if you need insurance for a modified motorcycle, then you might want to look for policies that offer agreed value as an option, rather than simply insuring it at market value.
- Flexible excess. It may be worth looking for insurers that let you set your own standard excess, to further tailor your costs.
- New replacement. If a relatively new motorcycle is written off following an insured event, you might be able to get a brand new equivalent replacement. A time limit, often 2 years, usually applies to this cover type.
- Temporary replacement vehicle. If you need your bike to get around, then it might be worth looking for policies that cover hire vehicles following theft.
- Personal items. You can get covered for the theft or damage of personal items and trailers.
- Keys and locks. Cover for the cost of re-keying or re-coding locks if your keys are stolen.
- Windscreen damage. You may be able to find an option for excess-free windscreen and broken glass claims.
- Protected no claims bonus. Policies that offer no claims discounts may also offer an extra-cost option that lets you make at-fault claims without losing your discount.
- Tools and trailer cover. If you use your bike to tow a trailer, or use it to transport any trade tools, then cover for these will often be found as separate options.
What insurance options do I have?
Like car insurance, motorcycle insurance generally comes in three forms: comprehensive, third party fire and theft, and third party property online. The best motorcycle insurance policy for you depends on how you use your motorcycle.
Each policy typically covers the following, however this may differ between insurers:
| Accidental Damage |
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| Intentional Damage |
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| Storm or Flood |
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| Fire |
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| Theft |
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| Earthquake |
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| Emergency Accommodation Transport and Repairs |
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| Legal Liability |
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| Towing Cost |
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| Locks and Keys |
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| Riding Gear |
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| Personalised Registration Plates |
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| Maritime Liability |
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What affects my motorbike insurance premiums?
- The value of your bike. Newer, more expensive and more powerful bikes will usually cost more to insure than older, cheaper and less powerful models. Consider how much your bike will cost to insure before you lay down your hard earned cash to buy your motorcycle insurance.
- Your claim history. The longer you have a policy without making a claim, the greater the no claim discount you will receive from your motorcycle insurance provider. This can help you save on your premiums.
- Your age. Riders under the age of 25 are much more costly than older drivers. So, if you're over 25 you may wish to consider whether it’s worth adding an under 25 rider to your motorcycle insurance policy. Specifying that no one under 25 will be riding your bike might save you a lot of money.
- Modifications. In some cases, modifications to your bike can help you save on premiums, such as if you add a security system to deter thieves. However, if your bike undergoes performance enhancements to make it faster or more powerful, you can expect your premiums to go up.
- How much you ride. You can save money by finding motorcycle insurance that allows you to only pay for cover for the kilometres you ride. Make sure not to over or underestimate your annual mileage when purchasing cover.
- Where you keep your bike. Keeping your bike in a secure, locked garage (or car hold) whenever it isn’t being ridden it will lower your premiums. If your bike is left parked on the street you can expect to pay more for your motorcycle insurance.
- Your level of cover. If you need to be covered for more risks under a comprehensive policy, your premiums will obviously be higher.
- Engine capacity. More powerful engines typically come with higher premiums. This is because accidents at higher speeds often cause more damage, riders may be more likely to lose control of powerful motorcycles, and these types of motorbike might be statistically more likely to be ridden in an unsafe way.
- Your excess option. You can opt to pay a higher excess in return for a lower premium.
Can you lower your insurance premiums?
It's natural to want cheap motorcycle insurance.
If you can adjust the factors that affect your premiums, you may be able to get lower premiums. Can you:
- Keep your motorcycle in a different place overnight? You'll often get lower premiums for keeping it in a secured garage rather than out in the open.
- Re-assess the value of your bike? For example, if you've insured a brand new motorcycle at agreed value then it might be over-insured two years later, and you might be paying too much for cover.
- Pay premiums annually? Many insurers will charge less overall for premiums paid annually rather than monthly.
- Get discounts? You may be entitled to a range of discounts, including loyalty bonuses, no claims bonuses, discounts for signing up online, multi-policy discounts and others.
- Adjust your cover? You might be paying extra for policy options that you don't feel strongly about.
What excess will I have to pay on my motorcycle insurance?
The excess is the amount you will need to contribute towards a claim. The exact amount will often depend on the type of claim, the insurer, the policy and your chosen options. Sometimes there will be more than one excess payable, including:
- Basic excess - Also known as the "standard excess." This basic excess will apply to most types of claims. When you get to choose your own excess for higher or lower premiums, you're typically adjusting the basic excess.
- Age excess - Under 25s will often have to pay an additional age excess in the event of a claim.
- Undisclosed rider excess - If the driver isn't listed as a user on the policy, an additional excess may need to be paid in the event of a claim.
- License or experience excess - Inexperienced riders who have held their motorcycle license for less than 2 years may need to pay an inexperienced rider excess. Sometimes this will only apply to over 25s.
- Special excess - Special excesses may be applied for individual circumstances. For example, if you have a history of traffic infringements then an insurer might only agree to cover you with a special excess. Often a special excess will apply to certain types of claim. For example, there might be a special "theft excess" with some policies.
How much should I choose for my basic excess?
The ideal amount depends on your circumstances and the policy. It may be worth opting for a higher excess to help reduce your premiums, especially if you're a particularly safe rider, or only intend to make claims in the event of a total loss.
However, it's generally a good idea to make sure the excess is affordable, so you can more easily make a claim if needed.
How are my bike insurance premiums calculated?
Different insurers will use different factors when determining premiums. Generally all of these factors might be considered to determine motorbike insurance quotes.
- What is your claims history like? If you’ve made a claim on your motorcycle insurance in the past, insurers will classify you as posing an increased likelihood of making a future claim. This will drive your premiums up. On the flip-side, a no claims bonus can help lower the cost of cover significantly.
- Who rides your bike? If you’re an experienced rider with an unblemished claims history and you’re the only person riding your bike, the cost of your cover should stay low. But if you want your motorcycle insurance policy to also cover a 22-year-old rider with a speeding conviction and several previous insurance claims, expect your premiums to skyrocket.
- Do you have a clean riding history? If you’ve got a long string of speeding and traffic offences, insurers will see you as posing a high level of risk and will increase your motorcycle insurance premiums.
- Where do you live? If you live in a high crime area the likelihood of your bike being stolen increases. This will be reflected in the cost of your motorbike insurance premiums, as will whether or not you keep your bike safely garaged overnight.
- Are there any security systems installed on your bike? Bikes with alarm systems or immobilisers are less likely to be stolen, which means you can save on your motorcycle insurance premiums.
- What kind of bike do you ride? If your bike is expensive and/or high powered, expect it to cost more to insure than cheaper, less powerful models.
- How much do you ride? The fewer kilometres you ride, the lower your motorcycle insurance premiums.
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Richard Laycock
Richard Laycock is Finder's insurance editor and has been wrangling insurance product disclosure statements for the better part of five years. His musings on insurance can be found across the web including on Money Mag, Yahoo Finance, and Travel Weekly. When he’s not helping Aussies make sense of insurance fine print, he is testing the quality of cocktails in his newfound home of New York. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance.
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Ask an Expert
Hi, I own a 1996 FLHR Harley Davidson Road king this bike has been mine since new and has travelled 28,150 klm the bike is as new.
I have been calling numerous insurance companies regarding comprehensive insurance for the bike as my son would now like to take the bike he is also named as an owner on the rego papers.
But to get sense out of these companies is very difficult I’m finding out’ hence I decided to write to you for some professional advice.
I had my own HD mechanical workshop for 20 years and I’m a qualified registered automotive mechanical engineer’ but to try and get it through to these people the condition of the machine has been very difficult as they are of the opinion the condition of the bike is the same as another 20 year old bike’ This bike has been serviced and maintained as per the HD recommendations but the oil and oil filter have been changed every 4,000 km with Synthetic oil being used from 20,000km.
They even question my changing the standard front twin disc brakes which are single pot calipers to high performance twin pot calipers with an approved 3000 psi set of braided lines.
I won’t go on I think you get my point the bike is pristine but they look at it as a 20 year old piece of rubbish but still want a ridiculous premium with very high excess included and that is after having met all their over the top conditions to insure it.
Can you come up with a company thats actually more interested in good business other than money grabbers that source the policy out to another company anyway and don’t give a rats about more classic aged motor cycles.
Regards, Chris
Hi Chris,
Thanks for getting touch with finder.
Typically, insurers will only offer comprehensive bike insurance to vehicles less than 10 years old. Also, the insurance you get will usually depend on the type of bike you have. If ever you’re able to insure your classic bike, indeed the premium would be high and costly. You could be paying more to insure the vehicle than what it’s actually worth.
Nevertheless, it’s still worth doing your homework and you can choose to insure your bike for an agreed value or market value, that is:
– The agreed value is agreed upon when you first take out your insurance policy.
– The market value is determined by the insurer depending on the market value of your vehicle at the time of the accident.
On this page, you can find a helpful guide on motorcycle insurance. There’s also one insurer featured on that page which you may like to contact and see what options available for you.
I hope this helps.
Cheers,
May
what is lowest premium for my third party insurance for my eterno scooter
Hi Hanumant,
Thanks for getting in touch. finder.com.au is a comparison service and does not currently have the facilities in place to provide quotes for motorcycle insurance.
All the best,
Richard