The basics of bike insurance and how to find a good deal

When shopping around for cheap bike insurance it’s important to look beyond the price of the policy alone, and consider what you’re getting for your money.

Here we look at the basics of bike insurance so you can search for the right deal for you with confidence.

What is bike insurance and how does it work?

Bike insurance is a legal necessity in the UK. Depending on the level of cover you choose, it could protect you against the costs of riding related damages and injuries.

There are three levels of cover available:

• Third party only: This is the minimum level of cover required by law and includes liability for damage or injuries to third parties and damage to their property.
• Third party fire and theft: As well as claims made against you in the event of an accident, it also covers fire, bike theft and any damage from an attempted theft.
• Comprehensive: Will usually allow you to make claims for damages to your motorbike in the event of an accident (subject to exclusions) and will also typically cover vandalism, accidental damage and medical expenses (policies vary between insurers).

Depending on the policy options available from the insurer and how much you’re willing to pay, you may be able to secure additional cover such as for a temporary motorbike if yours needs to be repaired; cover for riding other motorbikes in emergency situations; legal assistance; travelling in Europe; and breakdown cover.

Is there anything else to watch out for?

There are several other aspects of bike insurance that you should familiarise yourself with before shopping around – including:

• Excesses: An excess is your contribution towards a claim. This is typically split into a ‘compulsory excess’ – an amount your insurer decides you must pay towards a claim; and a ‘voluntary excess’. A voluntary excess is agreed when taking out a policy and this is an additional amount paid towards the cost of a claim. Setting the voluntary excess at a high level could reduce premiums – but it should only be set at a level you can comfortably afford in case a claim is necessary.

• No-claims discounts: For every year you are insured and don’t make a claim you will build up a no-claims discount. Bear in mind that any claim on an insurance policy under which the insurer cannot recover its losses – even if the accident was not your fault – will affect your no-claims discount. With some insurers it is possible to protect a no-claims discount after four or more years for an additional premium meaning that if a claim is made you will not lose your no-claims bonus. However, the claim still has to be declared when taking out another insurance policy.

• Policy exclusions: Every insurance policy has exclusions – circumstances under which the insurer will not pay out. They vary between providers so check the terms and conditions carefully.

How much will you have to pay for bike insurance?

Insurers assess a number of risk factors when you take out an insurance policy to determine how high your premiums should be – the higher the perceived likelihood of you making a claim, the higher your costs. This can be influenced by a number of factors including:

• Claims history: Whether you have made a claim in the last five years.
• Personal circumstances: Factors such as your age, your occupation, your marital status, whether or not you have any medical conditions and so on, could influence your premiums.
• Mileage: The longer you plan to spend on the road the more likely you are to have an accident and so riding less should earn cheaper premiums.
• Riders: The number of riders included on your policy and their driving history such as whether they have any driving convictions.
• Security: Where will you park the bike during the day and at night and what security devices does it have in place?
• Vehicle: Its age, its value, and how you plan to use it – for example, will you use the bike purely for social use; or will you also use it to commute to work?
• Your address: Your address is often used by insurers so they can assess the volume of traffic in your area and the crime rates.

How to find a good deal on motorbike insurance

Reducing the risk of making an expensive claim will lower your bike insurance premiums. So for example, fitting insurer-approved security devices will reduce the risk of bike theft and therefore many providers will cut premiums as a result. Increasing your voluntary excess, limiting your mileage and building up a no-claims discount will also help you save.

To find a competitive deal, use a bike insurance comparison website to compare the policies available from a range of insurers. These websites help riders gain an overview of what’s available so they can be more confident of finding the right policy for their needs.