What is Bike Insurance?by Laura Ginn Writer
Few things are more exciting to a young driver than the thought of taking to the open roads or cruising through the city on a new motorbike. A bike offers a sense of freedom that a passenger vehicle cannot offer. Before you head out to buy your new motorbike, though, you should consider the cost of bike insurance. The premiums you will pay can substantially add to the cost of owning and enjoying your bike.
The Basics of Motorbike Insurance
In many respects, motorbike insurance is similar to car insurance. It provides financial protection for others if you cause an accident while operating your bike. It can also financially protect you if you or your passenger become injured or if your bike becomes damaged, destroyed, or stolen. Without bike insurance, you would have to pay for costs you incur, as well as costs incurred by others, as a result of an accident or other covered event.
The Road Traffic Act of 1988 makes insurance cover mandatory for all bike owners in the UK. You cannot legally operate a motorbike unless you have at least the minimum limit of third party cover required by law. Lack of third party cover will also prevent you from obtaining your tax disc or registering your bike.
Available Cover Elements
All bike policies offered by insurance companies licensed in the UK come with third party cover. This cover element is designed to compensate innocent third parties for costs related to personal injuries and property damage if you cause a traffic accident while operating your bike on UK roads. At a minimum, your policy will provide at least £250,000 of third party cover for each accident you cause.
You can purchase a higher limit to provide additional protection to innocent third parties. Opting for a higher limit also gives you extra protection against lawsuits. Suppose, for example, that you cause an accident in which other drivers and passengers sustain total injury-related costs of £400,000. With a minimum-limit policy, your insurance carrier would take care of the first £250,000 of the injured parties' costs and you would be responsible for the remaining £150,000. If you opted for a policy with £500,000 of third party cover, on the other hand, your policy would take care of all of your financial liabilities to others.
You could also be liable for any injuries a passenger sustains while riding on your motorbike. In order to protect yourself against having to pay for your passenger's injuries, you can choose to add pillion passenger cover to your policy. Although pillion passenger cover is not required by law, it can shield you against financial disaster if a passenger on your bike is injured or killed because of an accident you cause.
If you have a newer bike, you probably invested several thousand pounds when buying your motorbike. If your bike is stolen, vandalized, or damaged in an accident, you could lose all of the money you invested. You might consider purchasing comprehensive and fire and theft cover to protect yourself against loss. Comprehensive cover pays to repair or replace your bike after an accident even if the crash is your fault. Fire and theft cover, as you might expect, pays for damage to your bike if there is a fire and for the replacement of your motorbike if it is stolen.
It is important to take the time to determine the cover elements you need before you purchase a policy. Purchasing inadequate cover might save you money in the short term; however, if you incur a loss or liability that is not covered under your policy, your expenses could be greater than what you might save in premiums. If you are not sure which cover elements you need, get in touch with an experienced insurance broker. Your broker can assess your financial needs and recommend policy cover elements that will adequately protect you.
Your broker can also take care of the task of obtaining rate quotes from insurers that offer bike insurance. She can then help you compare the quotes to find the best insurance cover at the lowest possible price. By taking the time to work with a broker, you might potentially save hundreds of pounds each year.
Created on Dec 31st 1969 19:00. Viewed 0 times.