Insurance
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Types of policies:
1. Compulsory Third Party - part of your rego, covers injury to others, sometimes called CTP, greenslips or TAC;
2. Third Party property - the cheapest, covers damage to the other party's property;
3. Comprehensive - covers accidental damage to your bike including fire and theft plus damage to other party's property;
4. Third Party, Fire and Theft - covers Third Party property, Fire and Theft to your bike but not accidental damage.
Explanation of Terms:
Premium
Is the amount you pay to insure your bike. This can usually be paid yearly, half yearly or monthly.
Excess
Is the amount you have to pay when making a claim.
When repairs are carried out to the bike, you pay the excess to the repairer when you collect the bike. In the event of a write off, the insurance company usually deducts the excess amount from your settlement cheque.
No Claim Bonus
Is the discount you are entitled to according to the number of years you have been insured without making a claim. Some insurance companies will recognise a 'No Claim Bonus' on a motor car insurance policy or even claim free years for driving a company car. Usually, some conditions apply. Proposal is the application form you must complete and submit to the insurer for acceptance of the insurance on the bike. Remember to be totally honest when answering all the questions on the proposal, as
this may affect acceptance.
Cover Note:
Some insurance companies offer an interim cover note to insure your bike whilst you complete the proposal form. This is particularly handy if you have just parted with all your cash on a brand new bike / helmet and gear and are a bit short to pay the insurance premium. Most bike dealers can organise a cover note so you can ride away on your bike with peace of mind knowing it's insured. But don't forget that a
cover note is only an interim cover until you complete the paperwork, usually 21 days. A cover note does not bind you to the insurer who issues it, however, you may find that if you do not proceed with the policy, a fee could be charged called a "time on a risk fee".
Discounts are sometimes offered for:
1. Club membership
2. Advanced rider training
3. Reduced usage/limited usage
4. Good insurance and/or driving/riding record
5. Your age
Remember to check:
1. Is the bike insured for agreed value or market value (details follow - read on)?
2. Do you get a replacement bike if the machine is under a certain age (usually one or two years) after a total loss?
3. Are you covered if someone else rides it?
4. Are the accessories / modifications covered?
So, what's insurance?
Insurance is based on the concept that your yearly premium is placed in a pool with all the other policyholders and in the event that your bike is damaged or stolen the cost to repair or replace your bike is drawn from this pool. Insurance companies take a bit of a PR hiding every now and then - almost everyone loves to hate them at premium time, though they're your best mate when they front up with the cheque after the worst has happened.
Details of policies
The first thing to understand is what different types of insurance do.
Compulsory Third Party is what you pay as part of your registration and covers personal injury that you might cause to someone else, such as a pillion, other road users or pedestrian(s).
Next up the ladder is third party property, which covers damage you might do to someone else's property, like punching a hole in the side of someone's Benz. This can be quite inexpensive and useful in the situation where the bike itself may not seem to be worth insuring, but is still capable of causing some serious damage to other people's property.
Some insurance companies package third party with a fire and theft cover - called a TPFT policy. This covers other people's property plus your bike if it's stolen or catches fire. However you're not covered for accident damage on your own machine.
The difference between this and comprehensive insurance is that your bike is also covered for accidental damage by comprehensive. You may find the price difference between the two is minimal and that comprehensive is what's required by a bank for a secured personal loan. The last thing you need is to be paying off a personal loan on a bike you no longer have due to an accident or theft.
So what's not covered?
There are standard exclusions to cover under most companies policies, some
of these are:
Riding whilst over the legal alcohol limit, riding an unregistered bike, where the damage and/or loss is caused intentionally by the insured owner, and riding without a licence.
It's a good idea to ask a prospective insurer for a copy of their policy wording although you will find that the exclusions are fairly standard. You may also want to give the insurance company a quick call before lending the bike to a friend, just to check what the conditions are - particularly if that friend is younger than you. Very often you're simply up for an increased excess when another rider is involved.
What's an excess? That's the part you are liable to pay before the insurance company gets out the chequebook. Just about all policies have a clause, which says that you cop any damage up to, say, $500 (this is the excess). Sometimes you'll be offered the option of paying a lower premium if you accept a higher excess, or vice versa.
Some terms you may come across are "agreed value" and "market value" - they mean exactly what they sound like and refer to how much you get if the bike is written off or stolen. This is worth investigating. Agreed value will be a sum you and the insurer agree on and the premium maybe more expensive. Market value will be dictated by market forces and will probably follow the advice of recognised dealer guides, classified adds, and other sources.
Value is a vexed question for owners of classic machinery or one-off specials and/or bikes over 20 years old. You may find you'll need to seek a specialist insurer in some cases and this is where the advice of a relevant club or association can be invaluable. There may be times when it simply isn't possible to insure a unique machine for anywhere near the actual cost you have outlayed.
Bolt-on accessories and modifications can usually be covered, so long as you let the insurer know about them. If you make some changes to the bike, let the insurance company know and again, be totally honest. As for riding gear, that's usually at your own risk if you're the one at fault. If another person is at fault, you're within your rights to expect a replacement for whatever has been destroyed, from the party at fault or
their insurer. Sometimes this will involve depreciation, particularly on clothing.
The best deal
How much will you pay? That depends on the perceived risk you and the bike represent, plus the value of the bike itself. For example, a learner on a high performance bike like a Suzuki RGV250 or Aprilla RS250, and you happen to live in a high crime area in a big city, the cost will be dearer. By way of contrast, a Ulysses club member (all over 40 years of age) with recognised rider training behind them, and a more relaxed kind of motorcycle that's garaged securely for most of the week, will most likely pay a fraction of the price even on a more expensive piece of machinery.
Here's what helps to get the price down: Some club memberships, some advance rider training courses, a good insurance record with previous policies, a good driving/riding record, owning the bike outright (ie no secured loan), being over 35, having a bike that's not a high-profile crash or theft risk, living in a low-crime area and preferably in a rural setting, garaging the bike for most of the time and only using it as a weekend toy.
It also pays to shop around. Sometimes market forces (like the entry of a new insurance company) will induce some special deals, or you may find some companies quote high because they feel they have to offer the service but don't really want to. In a particular scenario others simply won't cover a bike/rider. Investing, a few minutes in ringing around the insurance companies direct usually pays for itself in premium savings.
Oops...
Okay, so the worst has happened. Your pet possum ran under the front wheel just as you were leaving for work, you've panicked, grabbed a handful of front brake and somehow put the whole shebang up a tree. Now what? The law varies for state to state, but a serious accident where there's a lot of property damage and/or any personal injury requires police attendance.
Regardless of that, the universal advice is to collect all the info you can. Names and numbers of witnesses, plus anyone else involved. If you collected another vehicle, get the driver's rego and licence number. If you happen to have quick access to a camera, use it. Maybe even draw a sketch of the scene and make a few notes on what happened while it's all still fresh in your mind. If your bike is rideable, two quotes are preferable.
The trick is to put the claim in quickly and sit tight. If you managed to get all the facts together and there's no serious dispute over what happened, you should be pleasantly surprised at how quickly the whole thing is settled and you're back on the road.
No tricks
Insurance companies have long been on a mission to provide policies in plain English, or as close as they can get to it. If you're dealing with a reputable company there shouldn't be any complications, so long as you read the documentation, ask about anything that's not clear and make sure you shop around for the best package for you.
Code of Practice
Most licensed insurers are signatories to the General Insurance Code of Practice. These companies work within a set of guidelines for fair and open dealings between general insurance companies and their customers. The code provides a dispute resolution process, which is binding on the insurance company. Its worth checking to confirm your insurer supports the code.
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Types of policies:
1. Compulsory Third Party - part of your rego, covers injury to others, sometimes called CTP, greenslips or TAC;
2. Third Party property - the cheapest, covers damage to the other party's property;
3. Comprehensive - covers accidental damage to your bike including fire and theft plus damage to other party's property;
4. Third Party, Fire and Theft - covers Third Party property, Fire and Theft to your bike but not accidental damage.
Explanation of Terms:
Premium
Is the amount you pay to insure your bike. This can usually be paid yearly, half yearly or monthly.
Excess
Is the amount you have to pay when making a claim.
When repairs are carried out to the bike, you pay the excess to the repairer when you collect the bike. In the event of a write off, the insurance company usually deducts the excess amount from your settlement cheque.
No Claim Bonus
Is the discount you are entitled to according to the number of years you have been insured without making a claim. Some insurance companies will recognise a 'No Claim Bonus' on a motor car insurance policy or even claim free years for driving a company car. Usually, some conditions apply. Proposal is the application form you must complete and submit to the insurer for acceptance of the insurance on the bike. Remember to be totally honest when answering all the questions on the proposal, as
this may affect acceptance.
Cover Note:
Some insurance companies offer an interim cover note to insure your bike whilst you complete the proposal form. This is particularly handy if you have just parted with all your cash on a brand new bike / helmet and gear and are a bit short to pay the insurance premium. Most bike dealers can organise a cover note so you can ride away on your bike with peace of mind knowing it's insured. But don't forget that a
cover note is only an interim cover until you complete the paperwork, usually 21 days. A cover note does not bind you to the insurer who issues it, however, you may find that if you do not proceed with the policy, a fee could be charged called a "time on a risk fee".
Discounts are sometimes offered for:
1. Club membership
2. Advanced rider training
3. Reduced usage/limited usage
4. Good insurance and/or driving/riding record
5. Your age
Remember to check:
1. Is the bike insured for agreed value or market value (details follow - read on)?
2. Do you get a replacement bike if the machine is under a certain age (usually one or two years) after a total loss?
3. Are you covered if someone else rides it?
4. Are the accessories / modifications covered?
So, what's insurance?
Insurance is based on the concept that your yearly premium is placed in a pool with all the other policyholders and in the event that your bike is damaged or stolen the cost to repair or replace your bike is drawn from this pool. Insurance companies take a bit of a PR hiding every now and then - almost everyone loves to hate them at premium time, though they're your best mate when they front up with the cheque after the worst has happened.
Details of policies
The first thing to understand is what different types of insurance do.
Compulsory Third Party is what you pay as part of your registration and covers personal injury that you might cause to someone else, such as a pillion, other road users or pedestrian(s).
Next up the ladder is third party property, which covers damage you might do to someone else's property, like punching a hole in the side of someone's Benz. This can be quite inexpensive and useful in the situation where the bike itself may not seem to be worth insuring, but is still capable of causing some serious damage to other people's property.
Some insurance companies package third party with a fire and theft cover - called a TPFT policy. This covers other people's property plus your bike if it's stolen or catches fire. However you're not covered for accident damage on your own machine.
The difference between this and comprehensive insurance is that your bike is also covered for accidental damage by comprehensive. You may find the price difference between the two is minimal and that comprehensive is what's required by a bank for a secured personal loan. The last thing you need is to be paying off a personal loan on a bike you no longer have due to an accident or theft.
So what's not covered?
There are standard exclusions to cover under most companies policies, some
of these are:
Riding whilst over the legal alcohol limit, riding an unregistered bike, where the damage and/or loss is caused intentionally by the insured owner, and riding without a licence.
It's a good idea to ask a prospective insurer for a copy of their policy wording although you will find that the exclusions are fairly standard. You may also want to give the insurance company a quick call before lending the bike to a friend, just to check what the conditions are - particularly if that friend is younger than you. Very often you're simply up for an increased excess when another rider is involved.
What's an excess? That's the part you are liable to pay before the insurance company gets out the chequebook. Just about all policies have a clause, which says that you cop any damage up to, say, $500 (this is the excess). Sometimes you'll be offered the option of paying a lower premium if you accept a higher excess, or vice versa.
Some terms you may come across are "agreed value" and "market value" - they mean exactly what they sound like and refer to how much you get if the bike is written off or stolen. This is worth investigating. Agreed value will be a sum you and the insurer agree on and the premium maybe more expensive. Market value will be dictated by market forces and will probably follow the advice of recognised dealer guides, classified adds, and other sources.
Value is a vexed question for owners of classic machinery or one-off specials and/or bikes over 20 years old. You may find you'll need to seek a specialist insurer in some cases and this is where the advice of a relevant club or association can be invaluable. There may be times when it simply isn't possible to insure a unique machine for anywhere near the actual cost you have outlayed.
Bolt-on accessories and modifications can usually be covered, so long as you let the insurer know about them. If you make some changes to the bike, let the insurance company know and again, be totally honest. As for riding gear, that's usually at your own risk if you're the one at fault. If another person is at fault, you're within your rights to expect a replacement for whatever has been destroyed, from the party at fault or
their insurer. Sometimes this will involve depreciation, particularly on clothing.
The best deal
How much will you pay? That depends on the perceived risk you and the bike represent, plus the value of the bike itself. For example, a learner on a high performance bike like a Suzuki RGV250 or Aprilla RS250, and you happen to live in a high crime area in a big city, the cost will be dearer. By way of contrast, a Ulysses club member (all over 40 years of age) with recognised rider training behind them, and a more relaxed kind of motorcycle that's garaged securely for most of the week, will most likely pay a fraction of the price even on a more expensive piece of machinery.
Here's what helps to get the price down: Some club memberships, some advance rider training courses, a good insurance record with previous policies, a good driving/riding record, owning the bike outright (ie no secured loan), being over 35, having a bike that's not a high-profile crash or theft risk, living in a low-crime area and preferably in a rural setting, garaging the bike for most of the time and only using it as a weekend toy.
It also pays to shop around. Sometimes market forces (like the entry of a new insurance company) will induce some special deals, or you may find some companies quote high because they feel they have to offer the service but don't really want to. In a particular scenario others simply won't cover a bike/rider. Investing, a few minutes in ringing around the insurance companies direct usually pays for itself in premium savings.
Oops...
Okay, so the worst has happened. Your pet possum ran under the front wheel just as you were leaving for work, you've panicked, grabbed a handful of front brake and somehow put the whole shebang up a tree. Now what? The law varies for state to state, but a serious accident where there's a lot of property damage and/or any personal injury requires police attendance.
Regardless of that, the universal advice is to collect all the info you can. Names and numbers of witnesses, plus anyone else involved. If you collected another vehicle, get the driver's rego and licence number. If you happen to have quick access to a camera, use it. Maybe even draw a sketch of the scene and make a few notes on what happened while it's all still fresh in your mind. If your bike is rideable, two quotes are preferable.
The trick is to put the claim in quickly and sit tight. If you managed to get all the facts together and there's no serious dispute over what happened, you should be pleasantly surprised at how quickly the whole thing is settled and you're back on the road.
No tricks
Insurance companies have long been on a mission to provide policies in plain English, or as close as they can get to it. If you're dealing with a reputable company there shouldn't be any complications, so long as you read the documentation, ask about anything that's not clear and make sure you shop around for the best package for you.
Code of Practice
Most licensed insurers are signatories to the General Insurance Code of Practice. These companies work within a set of guidelines for fair and open dealings between general insurance companies and their customers. The code provides a dispute resolution process, which is binding on the insurance company. Its worth checking to confirm your insurer supports the code.
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