Guide to Motorcycle Insurance

motorcycle insuranceMotorcycle insurance is important for anyone that owns and rides a motorcycle, even if you are only a weekend or occasional rider.

Basic insurance covers any damage you may cause to other vehicles or property and full motorcycle insurance coverage will offer you replacement or repair of your motorcycle in the event of an accident, theft, fire or natural event. We all know how dangerous the roads are for a motorcycle rider and insurance makes good sense.

Unfortunately, many riders don’t have adequate coverage or don’t bother to take out insurance because they believe it is too complex, unnecessary or too expensive.

However, motorcycle insurance is quite simple to understand and much cheaper than you might have thought. The following is a basic guide to Australian motorcycle insurance.

Comprehensive
This type of insurance is the same as a comprehensive car insurance policy. This means that your bike is covered for any road accidents as well as from theft and fire. It also protects you against any claims made against you for damage caused to other vehicles or property. This type of insurance is the most expensive, but you can get discounts if you restrict the policy to one nominated rider and/or claim a good rider discount.

Legal liability
This only covers you against damage to a third party vehicle or property. Any damage to your own bike will not be covered under this policy. This is the minimum level of coverage that you should have if you own and ride a motorcycle and this type of policy is also much cheaper than comprehensive insurance.

Fire and Theft
This is available as an add on to legal liability insurance or as a standalone policy. It covers your bike in the event of theft or fire. This provides a little bit of extra cover for those who select legal liability insurance and is often taken out as a standalone policy for those with unregistered motorcycles (such as dirt bikes or racing bikes).

Vintage/Classic Insurance
This type of insurance is most suited to vintage or classic motorcycles. This type of insurance allows you to create a custom policy and protect your classic ride.

This insurance is suitable for those who ride their classic bike daily or once every now and then. However, this is an especially great way to insure a motorcycle that is not used very often and you can often get further discounts if it is kept in a secure location.

It is important to know that not every motorcycle insurance company offers this special type of insurance.

As you can see the motorcycle insurance industry is not overly complex and insurance can be organised in a few minutes.

The cost of insurance may put some people off, but basic cover doesn’t have to cost much at all. In fact, if you are an occasional rider you may be able to pick up a policy for less than $200 a year!

Covering your bike makes good sense and riding around without any type of insurance isn’t a good idea. At the very least you should be covered against any damage that you may cause to other vehicles or property.

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