Motorcycle Insurance Explained

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Motorcycle insurance broadly covers all styles of two-wheeled transportation on the roads including mopeds, touring bikes and high-performance sports motorcycles. Some companies can exclude some form of motorcycle as they may not fit within their risk category. As an example, conservative insurers may not cover modified motorcycles. They will normally have a modified motorcycle insurance plan, moped plan or scooter plan that can be taken as an alternative with a different set of inclusions.

Who is a potential candidate?

Anyone who rides a motorcycle needs to have motorcycle insurance. It doesn't matter if you are an occasional weekend rider or spend every day on your cycle, you need to be covered. The law for motorcycles is the same as for other motor vehicles.

What typically does it cover?

Motorcycle insurance covers the motorcycle from damage caused by an accident as well as liability to other vehicles or injury caused to another party. Typically, you would make a claim through your motorcycle insurance policy in the same way you would an auto insurance policy.

You also get coverage for a number of accessories with are associated with motorcycle riding. As an example your helmet, leathers, saddlebags and backrest should all be covered. However, the insurance on these accessories is limited so if you have an expensive helmet or other accessory it is recommended by brokers to insure it separately.

You should receive roadside assistance as standard as well as a trip interruption payment to ensure you can get home if you are traveling interstate.

What typically does it not cover?

Damage to your motorcycle caused by weather is not typically covered unless the damage is caused while the motorcycle is stored correctly (e.g. in a garage or a covered car park).

Damage to custom work completed on your motorcycle is also not covered unless you have stipulated to the insurer that the custom work has happened and have provided photographic evidence of the work. This is becoming increasingly common as more people are making large claims for custom work.

Damage caused to you by another party who is uninsured is not covered in the event of an accident. You normally have to request an 'uninsured motorist' inclusion.

Motorcycle insurance packages vary massively between states so check the policy carefully as it may different from the advertised package.

Additional coverage that policy holders might take out in this area

Motorcycle plans tend to be comprehensive as it covers damage, public liability, roadside assistance, medical expenses and travel expenses. However, those expenses are limited to assisting you in that immediate moment. You may need more comprehensive medical protection and roadside assistance policies to benefit fully from a claim.

As in auto insurance you can be comprehensively insured on your motorcycle but as a standard policy is so comprehensive there is no real extra coverage you need unless your state has any glaring omissions for their standard cover list.

What will it typically cost?

The price is determined by your experience, your auto record, the bike you would like insured and the amount of cover you need. You could pay up to 5% of the value of your motorcycle per year as a premium but it is likely you will pay less than that as discounts are always offered for clean driving records, age, gender and a whole host of other reasons.

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