What is Bike Insurance?
by Laura Ginn WriterFew 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.
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Created on Dec 31st 1969 18:00. Viewed 0 times.