The Cycle of Insurance: The Good and the Bad

You came up with the bright idea of trading in your car for a motorcycle. It’s a smart move right? Save on gas, repairs, upkeep, and emissions, right? While you will save on all those aspects of owning a motor vehicle, you may however not save on insurance. Motorcycle insurance is very expensive unfortunately.

Motorcycle insurance covers the owner or driver against the typical events that may occur, which fall under the categories of accidents and theft. The insurance only covers the owner or driver, because motorcyclists usually ride by themselves, generally without anybody else tagging along.

Compulsory insure for motorcycles is usually low, however fire and theft are not taken into account. Motor bikes are easy to steal and insurance companies are timid when covering such a hot commodity. Expect high premiums if you wish to cover theft and fire.

Also, insurance companies receive a lot of claims dealing with horrific injuries to the motorcycle driver and or passengers when they are exposed to an accident. Motorcyclists are not protected well, especially when you take into fact that they are traveling anywhere from 30-100 mph’s, are not protected by the vehicle, do not wear seatbelts, and are totally exposed to other traffic. Because of this, you can expect high premiums.

Insurance companies have no choice but to take into account these serious dangers. However they are also willing to reduce premiums by deciding how risky the driver and the bike are to society. The insurance broker will asset the driver’s age, years riding motorcycles, and size and power of the bike and engine.

An insurance company will also break down the number of speeding tickets and accidents the driver has been involved in the past. Like car insurance, motorcycle insurance weighs the premium heavily on the number of tickets and accidents. If the driver has a past record of safety, they will certainly award them.

Last but not least, a bike owner will receive a lower premium if they use the motorcycle more for a recreational activity and less for everyday use. For example, if your primary mode of transportation is a truck and you just own a bike for pleasure, chances are your premium will drop.

Graham McKenzie is the content Syndication Manager at insurance123.co.zaSouth Africa’s leading Motorcycle Insurance information portal