Motorcycle Insurance

Sales of motorcycles and scooters have grown dramatically in the past few years and it’s easy to understand why. In addition to the many “born-again bikers”, who may have owned a small bike in their teens and want to recapture the experience in their 40s or later, there are many for whom a motorbike is an ideal commuter vehicle.

Motorbikes are cheap to buy and run, much more so than cars. Road tax is less expensive for bikes than for cars – and costs nothing for classic bikes. Parking is often free and, in London, there is no Congestion Charge to pay.

But what about insurance?

Basic principles of bike insurance

In essence, motorbike cover works in much the same way as it does for cars.

The minimum type of bike insurance is “third party”. This covers liability for:

• Injuries to other people, including passengers
• Damage to other people's property
• Accidents that your passenger may cause

The next level up is “third party, fire and theft”. This provides the above cover, plus protection against fire or theft of the bike.

“Comprehensive” insurance provides cover for the above, plus:

• Accidental damage to your motorbike or scooter
• Personal accident benefit: if you are injured and the accident is not your fault the insurer will obtain compensation on your behalf
• Medical expenses: mostly covers your transport to hospital, any medical tests and, sometimes, physical rehabilitation after your injury
• Loss of or damage to personal effects, for example theft of a helmet held in a top-box.

What determines the cost of motor insurance?

People often grumble about rising motorbike insurance costs. Why do prices go up?

• The soaring cost of litigation. Bikers and drivers are more likely to claim for personal injury, like a serious case of whiplash, and the amounts paid out for injuries are much higher than they used to be.
• Brand new, high-spec bikes are often as expensive as a good second-hand car, although some can be bought much more cheaply.
• NHS costs. Accident and emergency departments can now claim for the cost of your treatment from your insurance company
• Uninsured drivers. About one in 20 drivers is uninsured, but recent research carried out by Direct Line and Mori suggests that this figure is more like one in 10 drivers. This adds around £30 to the average annual premium.

How is your quote calculated?

• Postcode. You are deemed to be higher risk if you live in a city or urban area - especially if you park your bike in the street. Security measures – alarms, locks and so on reduce premiums. Garaging your bike can cut premiums substantially.
• Age and experience. Newly-qualified riders, especially under 25s, are more likely to have accidents than older, more experienced ones. If you have held a full bike licence for some years, premiums are reduced substantially. Also, attending special courses, such as those by the Institute of Advanced Motorists (IAM) will often lead to a discount.
• Claims history. The less you claim, the less you pay. The best no claims histories are for three years or more
• Excess. The more money you’re willing to pay out as excess, the lower your premium.
• Size of bike. Perhaps even more than cars, the size of a bike relative to a rider’s age, can make a huge difference. A Honda Fireblade can accelerate to 60mph faster than a Ferrari and can reach 160mph in seconds. A 50cc twist-and-go moped, restricted to 30mph by means of a “limiter”, will cost far less to insure.

Buying insurance: The information you need

Make sure you have the following information on hand when obtaining a quote:

• Bike make, model and cc (engine size)
• Registration number
• Full postcode
• Number of years you’ve had your no-claims discount
• Where the car is normally kept - street, garage, etc
• Details of other riders - name, date of birth, licence type, residency in UK and occupation. This information is far less likely to be required than with car insurance
• What the bike will be used for – social, domestic or business.
• Estimated annual mileage.
• The type of cover - comprehensive, third party fire and theft, or third party only
• Full details of claims and convictions from the last 5 years