Motorcycle insurance is designed to protect you and your motorcycle financially in an accident, theft or damage.
Under this insurance type, there are usually three options (3rd Party, 3rd Party Fire & Theft and Comprehensive) which offer different levels of cover including Riding apparel cover, windscreen and headlight damages, lost or stolen keys, repair costs, emergency roadside services and accidental damages.
Although motorcycle insurance isn’t compulsory, it is very common & important for New Zealand for Motorcyclists.
We think Motorcycle Insurance is a good idea. If you own a motorcycle, they are one of the most expensive things you could own and easily cost thousands of dollars. Even if you think you are a great driver, you can’t say the same for others out there. In the unfortunate event where they crash into you and can’t afford the repair costs, you don’t want to spend thousands from your own pocket, or worse, replace the car entirely. Most motorcycle Insurance comes in three levels and covers different things. Choose the right policy for your need and find out where you are covered and where you are not.
First, pick a Motorcycle Insurance company such as AA, AMI, Tower, State, Star Insurance, Protecta, Swann Insurance, Classic Cover, Club Auto.
Second, have your details ready including REGO (Motorcycle number plate), the driver’s detail (DOB, drivers and driving history, address of where the motorcycle will be mostly parked. Other details you may want to prepare include your motorcycle make and model, membership information if you already have another policy with the provider, and the estimated agreed or market value of your motorcycle.
Third, pick your cover type from the most common types of Motorcycle Insurance including: 3rd Party, 3rd Party Fire & Theft or Comprehensive. Here’s a quick look at their differences.
The most basic policy (3rd Party) usually only covers you if you damage someone else’s property with your motorcycle. Other benefits like protection against Fires and Thefts, Locks and Keys, Windscreen damages are usually not part of this level.
3rd Party Fire and Theft provides more cover than just the basic policy to include Fire and Theft. This means that your motorbike will now be insured for damage or replacement due to fire, theft attempts and certain natural disasters as well the basic third party benefits.
Comprehensive is usually the most expensive and offers the most protection including repairs and replacement of your motorcycle aswell as damage to someone else’s vehicle and property. This is the best option if you have a car that you can’t afford to replace entirely, and it will cover the costs of repair or replacement regardless of who is at fault in an accident. An accident could be anything from scratches from a wall to more serious motorcycle crashes.
Fourth, pick an Excess you’re comfortable with. Typically Excess options usually range between $500 to $1,500. The higher the Excess the cheaper the premiums (your ongoing cost of insurance). Excess is the amount you’ll have to pay when you need to make a claim. You take away some of the risk that the insurance company takes on, so they reward you with a cheaper price (premium). However, make sure you’ve got enough in your bank to pay the Excess if you do get into an accident or needed to use your insurance. Remember, putting the Excess on your credit card is expensive!
Lastly, check that your insurance cover is still right for you every 12 months or if you have any changes to your family, income or lifestyle. For example, you will want to adjust your agreed value (the amount your car is insured for) as your motorcycle decreases in value, to help bring down your premium, or make changes to drivers listed on the policy.
Quashed is an online platform that makes it easy for you to manage and track all your insurance in one place. You’ll be prompted at the right time to check on your insurance and it helps you keep track of how your premiums are increasing each year.
The cost of your premium is different with each provider and they don't all follow the same guidelines when it comes to calculating costs. Premiums are the on-going payments you make to continue your cover and protection. Below are some of the common factors used in the industry that will play a part in determining your premium.
Your coverage: Whether it’s a 3rd Party, 3rd Party Fire and Theft or Comprehensive policy makes a big difference as it offers different levels of protection. How much the car is insured for (agreed value) or market value will also make a difference. The more it’s protected for the more you can expect to pay.
Your age & riding experience: Younger, less experienced, riders are more likely to get into accidents and so the price increases to account for this.
Your riding history: Recent riding accidents and/or any violations such as speeding and drink driving will impact on the price you pay. It’s an indication of your chances of making a claim, with a clean driving history getting you the lowest price possible.
Your address: Number of accidents or claims in an area and repair cost feeds into the price. Insurance providers will also adjust the premium based on your parking location, and whether it is secure in terms of risk. If you park inside a garage, your motorcycle is considered lower risk than on-street parking, thus you will have a lower premium price.