General Motorcycle Insurance Information

How does bike insurance work and is it possible to get cover if you participate in rallies and other events without paying over the odds?

How does bike insurance work?

Bike insurance is designed to cover the cost of accident-related damages and injuries, depending on the level of cover you take out. There are three options available:

- Third party only: This covers liability for injuries to others and damage to their property.

- Third party, fire and theft: Add protection for your own bike if it stolen, damaged in an attempted theft or damaged in a fire to traditional third party cover.

- Comprehensive: All the cover of a third party, fire and theft policy plus repairs for your own bike in the event of an accident (subject to exclusions). Depending on the policy you choose it may also incorporate features such as accidental damage, medical expenses and personal accident cover.

As policies vary widely between insurance companies it’s important to shop around before determining the right deal for you. Some companies offer more protection than others as ‘standard’ features of their policy, while you may need to pay an additional premium to secure ‘optional extras’.

Some of the features you may wish to consider include: breakdown cover; legal expenses cover; a temporary replacement bike while yours is repaired; insurance to ride other motorbikes with the owner’s permission in emergency situations; and cover while riding in Europe.

In addition, consider the policy excess – this is your contribution towards a claim. Usually an excess is divided into a ‘compulsory excess’ set by the insurance company and a ‘voluntary excess’ which is an additional amount you agree to pay towards a potential claim. Increasing the excess will usually lower premiums, but it should be kept at a level you can comfortably afford.

What about cover for rallies and track events?

Most bike insurance policies are designed for bikes that are used on the road and not in rallies or other specialist events. However, if you shop around you may be able to find suitable cover from a racing/sport bike insurance specialist.

To ensure you get the level of cover you want you should examine the terms and conditions carefully to ensure the event you plan to participate in is covered. For example, is it a road race, track race, rally, or motocross event? Generally you will not be covered for participation in the event itself but will simply be covered while off track. Racing bike insurance policies may stipulate that you are covered while the bike is taken on the public highway, including travelling to and from events and between rally stages.

In addition, check to see if there is cover for off-course storage and transit. Does the insurance policy offer “all perils” physical damage protection (subject to terms and conditions) for the bike while it is transported to and from events and while it is not in the paddock or garage areas? Does the policy stipulate that the bike must be stored in a locked garage when not in use? Depending on the policy you choose, it may also be possible to cover spare parts, tools, the trailer itself and any essential equipment.

For events that don’t involve racing the motorbike such as club meets and other non-racing showcases, you may be able to take out additional cover if you contact your insurer directly.

How much will you pay for bike insurance?

As participating in motorsports and rallies exposes the bike to additional risks you may expect to pay more for your insurance – providers typically base premiums on the likelihood of you making a claim and consider factors such as your riding history; how you will use the bike; your annual mileage; the bike you ride; your personal circumstances; and your address.

The good news however, is that there are ways to limit this risk and therefore bring premiums down. Here are some tips:

- Agree to a mileage limit: The fewer miles you travel, the less likely you are to be involved in an accident so consider agreeing to a mileage cap.

- Choose a conventional bike: Older bikes with smaller engines generally qualify for cheaper premiums because they cost less to replace/repair and are less likely to be driven at fast speeds.

- Increase security: Electronic and mechanical security devices recommended by insurers could bring premiums down.

- Limit the named riders: Adding other riders to your policy could cause premiums to increase depending on their riding history.

- Park safely: Store your motorbike in a locked garage overnight to limit the risk of theft and vandalism.

In addition, remember to shop around for bike insurance – the leading comparison websites can compare deals from more than 20 insurance companies. However, remember to look beyond price alone and also consider the levels of cover available to ensure you’re receiving value for money.