Things to Know Before Purchasing Motorcycle Insurance 

Things to Know Before Purchasing Motorcycle Insurance 
June 03 05:53 2022

Insurance is one of those things you buy and never hope to use. But, it is crucial. It’s hard to predict when accidents will occur. However, when they happen, it is best to be prepared.

Shopping for motorcycle insurance can be challenging even for people who’ve bought one before. But with some research, you can find the best deal that’ll save you hundreds of dollars. The best thing to do is to compare motorcycle insurance offered by different companies before choosing one. This article lists five factors that will help you make the right decision when purchasing insurance for your motorcycle.

Type of Insurance Policy

Motorcycle insurance is available in three different forms; third-party only insurance, third-party fire & theft, and comprehensive insurance. Having third-party only insurance is a requirement in most places. It protects you from liability for bodily injury and property caused to third parties should an accident occur. However, the driver and their motorbike aren’t covered. We should also mention that some insurance companies offer this policy with lower coverage for motorcycles than cars.

Third-party fire and theft insurance protects your bike in the event that damage or loss results from fire or theft. Some policies also cover towing costs resulting from these accidents. But, we should mention that theft claims are usually compensated if the whole motorbike was stolen and not just parts.

Comprehensive insurance offers more coverage than the above two. On top of covering damages to third parties, you can also make claims for damage or loss, injuries, and death to third parties that resulted from an accident. Some companies also let you add more benefits to your cover like personal accidents, medical expenses, etc.

Remember that the above two will not cover the driver’s medical fees, meaning that the driver will still need health insurance to make insurance claims when involved in an accident.

Claim Settlement Ratio

The main reason for purchasing insurance is to protect you during your time of need. You need to know how much your coverage a policy offers before buying it. And that is where the claim settlement ratio (CSR) comes in. CSR means how many claims the insurance company can settle matched with the total number of claims it has received during a financial year.

The higher the CSR, the better. Because it gives you some certainty that your claims will be resolved. Besides the Claim Settlement Ratio, it’s also wise to know how to claim insurance so that you aren’t confused when you need help.

Policy Exclusions

These are the risks that the insurer doesn’t cover. Apart from knowing what the insurance includes, you should also know what is excluded to avoid disappointment. No one wants to make insurance about a claim only to find out later that their policy doesn’t cover it.

Please avoid policies that have many exclusions. While they may seem cost-saving at first glance, they will eventually cost you more money. When deciding which policy to buy, consider other things like Insured Declared Value, No Claim Bonus, customer support, add-ons, etc.

Your Motorcycle Usage

How do you use your motorbike? Is it for private use? Or do you use it to commute to work on top of leisure activities? Or do you use it for both personal and business use? Answering this question is essential as it will help you decide which policy to buy.

All insurers need you to declare your usage, and some will even want you to reach out so they can judge your motorbike usage. If you forget to inform your usage or give the wrong details, your application will be rejected or your claim reduced.

Shop for Motorbike Quotes

Don’t settle for the first policy you get. Instead, compare policies offered by different companies and decide which suits you best. Even if you find an insurer offering low premiums, you should double-check to ensure that you are getting. It’s also advisable to work with a professional advisor to help you compare the plans and decide on one that matches your needs.


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About Article Author

Ma Pages
Ma Pages

Like sharing articles about out of the ordinary trips, places you may have never heard of, my passion for food and wine and, often times, about luxury journeys. I enjoy the finer things in life. Who doesn’t? Follow me and see , learn and experience the beauty, people, places and getaway , your future perfect holiday .

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