If you’re looking for motorcycle insurance in NSW, here’s how to find a policy that offers the right cover at the right price.
Few things compare to the freedom and unmistakable joy of hitting the open road on a motorcycle. But regardless of whether you’re zipping through the city on a scooter or touring back-country roads on a big cruiser, to enjoy true peace of mind when travelling on two wheels, you need to choose the right motorcycle insurance.
There are several factors that affect the cost of cover, so let’s take a closer look at how to find the best motorcycle insurance in NSW.
Ready to compare motorcycle insurance policies for NSW?
Why do I need motorcycle insurance?
There are several important reasons why you should purchase motorcycle insurance, including:
- Protects against essential risks. Fire, theft, collision, vandalism, third party liability and more – motorcycle insurance can protect your bike (and your wallet) against several common risks.
- Cover for a wide range of motorcycles. From sports bikes and cruisers to scooters, mopeds and just about everything else you can think of, there are motorcycle insurance policies available to cover an extensive variety of motorcycles.
- Choose your level of cover. There are three main types of motorcycle insurance cover available, allowing you to choose a policy that matches your cover needs and budget. Some insurers also provide specialist cover for unique motorcycles, such as vintage or classic machines, providing essential protection for your pride and joy.
- Hit the road with peace of mind. Having motorcycle insurance cover in place allows you to hit the road with confidence. Rather than having to worry about the financial impact if something goes wrong, you’ll be free to concentrate on the joy that only two-wheeled travel can bring.
What should I consider when purchasing motorcycle insurance in NSW?
Before deciding on the right motorcycle insurance policy for you, make sure you closely consider your cover needs and budget. Once you know how much you want to insure your bike for and the risks you want to be protected against, you’ll be ready to start comparing policies.
However, it’s also worth pointing out that while Compulsory Third Party (CTP) insurance is included as part of your registration costs in most Australian states and territories, it must be purchased separately in NSW and the ACT. CTP insurance is mandatory and you must purchase a policy before your motorcycle can be registered in NSW.
In addition to CTP insurance, it’s also worth considering taking out motorcycle insurance that covers third-party damage liability and damage to your bike. There are three types of motorcycle liability and damage insurance available – we’ll take a closer look at what they cover in the next section.
What type of motorcycle insurance can I get in NSW?
There are three types of motorcycle insurance available in NSW: comprehensive insurance, third party fire and theft insurance, and third party property damage insurance. Check the table below for more details on what each of these policies does and doesn’t cover.
| Feature | Comprehensive | Third party fire and theft | Third party property damage |
|---|---|---|---|
| Damage to other people’s property |
|
|
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| Damage to your motorcycle when involved in a no-fault accident with an uninsured motorist |
|
|
|
| Damage to your motorcycle caused by fire and theft |
|
|
|
| Damage to your motorcycle caused by accident/collision |
|
|
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| Damage to your motorcycle caused by vandalism, malicious acts, storm, hail, flood, earthquake |
|
|
|
For a full rundown on the cover provided by each type of motorcycle insurance, read the PDS provided by your insurer.
How much does motorcycle insurance cost?
The cost of motorcycle insurance can vary greatly depending on your age, how powerful your bike is and the level of cover you choose. For example, while a 300cc bike may cost $2,500 per year to insure for a 20-year-old rider, cover for the same bike may cost only $700 per year for a 30-year-old.
In terms of power, while a 600cc bike may be around $1,500 per year to insure for a 30-year-old rider, the premiums for a 300cc bike for the same rider could be less than half this amount.
To get a better idea of how much you’ll pay for cover, compare NSW motorcycle insurance quotes from a wide range of insurers.
What things can affect my motorcycle insurance premium?
There are several factors that affect the cost of motorcycle insurance in NSW, such as:
- Your age. Younger riders are statistically more likely to be involved in an accident and therefore have higher premiums.
- The size of your bike’s engine. The more powerful the motorcycle, the higher your premiums will be.
- The level of cover you choose. The higher your level of cover, the more you will need to pay for a policy. The sum insured you select will also influence your premium amount.
- Your riding and claims history. If you’ve never made a motorcycle insurance claim or had a traffic infringement, you’ll pay less for cover than someone with a chequered riding history. However, if you’ve only held your licence for less than two years, you can expect to pay more for cover.
- Where your bike is kept. The suburb where your bike is kept overnight will affect premiums; for example, if you live in an area with a higher than average rate of motorcycle theft you will cop a higher premium. Keeping your car in a locked garage instead of parked out in the open can also reduce premiums.
- Outstanding finance. If there is money owing on your bike, expect your premiums to be higher.
- How much you ride. The less you ride, the cheaper your premiums will be. However, if you ride regularly or cover a significant amount of kilometres each year, expect premiums to rise.
- Rider training. If you complete an advanced rider training course, some insurers will reward you with cheaper premiums.
- Discounts. You can save money on cover by taking advantage of any discounts that apply, such as a loyalty discount for long-term policyholders.
Are there any exclusions and additional costs I should be aware of in NSW?
If your motorcycle has been modified with non-manufacturer accessories and is no longer street-legal or roadworthy, you will not be able to purchase motorcycle insurance cover. You should also be aware of any other general exclusions that apply to your policy, such as:
- No cover if your bike was being used illegally, such as for street racing or burnouts
- No cover if your bike was being ridden by someone under the influence of alcohol or drugs
- No cover if you ride your bike while unlicensed
- No cover if your bike was carrying a larger load or larger number of passengers than permitted by law
Finally, keep in mind that motorcycle insurance in NSW attracts stamp duty at a rate of 5% of the insurance premium. While the insurer is usually liable to pay this duty, sometimes the additional cost will be passed on to you.
Picture: Shutterstock
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