Motorcycle Insurance 101
Maybe you are a daredevil, seeking the thrill of the wind blowing through your hair. Or maybe you’re looking for a more affordable alternative to commuting to and from work. Whatever your motivation for wanting to buy a bike, one thing is for sure… You need insurance! The only question is, which type of motorcycle insurance is best for you? Well, here is everything you need to know to help you find the best insurance deal.
Why Insurance is a Must- Have:
Chances are, you’re digging deep into your pocket to purchase this new ‘iron pony’, the least you can do is ensure that you protect your own investment. And when you consider South Africa’s road accident statistics, the need for insurance cover becomes crystal clear.
Generally, motorcycle insurance covers the liability that you may have should your bike be involved in an accident in which someone else is injured or their property damaged. Depending on the policy type that you opt for, the insurance may also cover your bike repairs and/or replacement.
What Are Your Options?
You will come across three main motorcycle insurance products.
- Third Party Cover – this type of insurance offers basic motorcycle cover and normally pays out when someone else (a third party) has been injured or their property has been damaged as a result of being involved in an accident caused by you or your bike. As the most basic and cheapest insurance product for bikes, this type of policy will not cover repairs or the replacement of your bike.
- Third Party Theft & Fire – building on Third Party cover, this type of policy offers you additional cover should your bike be damaged by a fire or need to be replaced as a result of being stolen or hijacked.
- Comprehensive Insurance – offering coverage to all the parties involved in an accident, this type of policy is the most inclusive policy for your bike. Naturally, the more the coverage, the higher the policy pricing will be though. That said, the value that a policy of this nature offers is also generally much higher than the other two types of motorcycle insurance products.
Some insurance providers further offer the following benefits as optional extras on a policy:
- 24-hour emergency medical and roadside assistance
- Personal accident cover (including medical, death and disability benefits)
- Tyre coverage
- Cover for riding apparel
- Cover for dents and scratches
It may be helpful to remember that the following factors may influence the policy cost (both the monthly premium as well as the excess applicable):
- Owner’s age – the younger you are, the higher your perceived risk factor will be and the more expensive your insurance may be.
- Your bike – the make, power and capacity of your bike generally influence the cost of your insurance, since a more expensive or rare bike generally costs more to replace.
- Your location – the area where you live and/or where you will store the bike.
- Your driving record – the more accidents you have been involved in, the higher your risk of claiming.