Importance of having bike insurance in place
If you’re tempted to ride without bike insurance then think again – it is required by law in the UK. Here we look at why bike insurance is so important and what to look for from a policy.
Why is bike insurance essential?
The purpose of bike insurance is that if you cause an accident it will cover the cost of any riding related damage or injury suffered by a third party. Depending on the level of cover you choose, you could also get cover for yourself and your bike.
There are three types of bike insurance available in the UK:
- Third party only: Covers damage or injuries to third parties as well as damage to their property. It will not protect your motorbike or provide cover for personal injuries.
- Third party fire and theft: Standard third party only cover but with additional protection for your bike in case it is stolen, suffers damage during an attempted theft, or fire damage.
- Comprehensive: Typically, comprehensive cover allows the policyholder to claim for damage to his/her own vehicle (with the exception of policy exclusions), alongside features that vary from insurer to insurer but typically include accidental damage, medical expenses and vandalism.
What about uninsured riders?
Unfortunately many bike owners don’t take out insurance cover, even though failing to do so is breaking the law.
Thankfully if you are involved in an accident with an uninsured rider you will be protected. The Motor Insurers’ Bureau ensures victims of untraced or uninsured motorists are compensated with all motor insurers obliged to be part of the bureau and contribute to its funding.
Riding without motorbike insurance is very risky, however. The Bureau keeps a database with details of policyholders which the police can access to see whether or not someone is insured either at the scene of an accident or during a spot check. In the event that you are caught riding without insurance you could be fined, face penalty points on your licence, or even have your bike seized by the police.
So what should you look for in a bike insurance policy?
When choosing a bike insurance policy there are a number of aspects to consider, including:
- The level of cover: Typically third party and third party fire and theft policies are obtained by riders with relatively inexpensive motorbikes. If you opt for comprehensive cover consider the standard features offered – for example will the insurer supply a temporary replacement bike while yours is being repaired; and are you covered to ride other bikes on an emergency basis if necessary?
- Additional options: Consider whether or not you are willing to pay extra for additional cover such as legal expenses cover; breakdown cover; and travelling in Europe.
- Excess levels: Most insurers set a compulsory excess – this is an amount you are obliged to pay towards a claim so consider this when shopping around as a high excess could make many smaller claims worthless. Also consider how high you want to set the voluntary excess – this is an additional amount you can agree to pay towards the cost of a potential claim when you take the insurance policy out. Setting the voluntary excess at a high level can reduce your premium, but it should only be set a level you can afford.
- Rewards: What incentives does the bike insurance policy offer? For example, is there a no-claims discount and if so how high is the bonus and how quickly can you earn it? Are there additional discounts, such as for buying online or for being a member of an owners’ club?
- Payment options: Many insurers allow customers to pay monthly, but this option normally includes interest charges so you may prefer to make payments annually.
How can you find a competitive deal?
You could potentially save time and money by using a comparison website to compare policies from a range of motorbike insurance companies. By entering your details into an online form, the website will do the work for you, returning quotes from the insurers in its listings with the cheapest deal listed first. Just remember to examine the terms and conditions before you buy to ensure you’re getting value for money.
There are several other steps you can take for which many insurers offer discounts - these include: increasing the security of your bike with insurer-recommended devices; parking in a garage overnight; agreeing to a mileage limit; adding older, more experienced riders as named riders; and building a no-claims discount.