Motorbike Information

Ok, little tips here to help you lower the insurance premium for your motorbike, a few simple rules to follow when considering your insurance options.

Where do you park?

The answer to this question has a massive impact on the cost of your motorbike insurance. The best option according to the insurance industry is locked your own garage. If you don’t have one, is it possible to use neighbours. This does not give the same benefit as having your bike parked in your own garage, but it will still bring your premium down. You can also buy specialist bike sheds for around 700. These are a worthwhile option if your budget allows, as it will give you the same discount as having your bike in a garage.

If you park on your driveway, you will get some discount, but not quite as much as if it was in a garage/shed. If you have any space on your property, use it to park you motorcycle overnight. Insurance companies do not like bikes to be parked on the road, as it is more likely to be stolen or damaged out in the open.

What security do you have?

There is a comprehensive range of chains, ground anchors and other security devices. Some companies build in security into new bikes. Honda has their HISS system, an advanced immobilizer. You can purchase alarms for under 100 and quality chains and locks can be bought for around 40 upwards.

Whichever security device you buy, be sure they are Insurance approved. This means that the insurance company has tested the security item, and that it meets their requirements.

Alarms and immobilizers give you the biggest discount, but chains and a lock make your bike harder to steal. If possible, get both.

How old are you, and do you have any No Claims?

Age, you can do nothing about. The younger you are, the more Insurance you pay, simple as that. No Claims Discount/Bonus or NCD/B is basically a discount the insurance companies give you for every year of riding without claiming. So, the safer you are, the less you claim on your insurance, the more NCD you can get. This can save you a massive amount, up to 40%!

In summary, insurance is an expensive, but necessary cost of biking. By following the items above you can save a decent amount on your premium, leaving you some spare cash to spend on goodies for you and your bike.

You may be forgiven for asking what is underwriting and why does it matter to me, after all, most of us have no idea what happens to our application when it goes to the motorcycle insurer for assessment.

Insurance underwriters decide whether your application for motorcycle insurance should be accepted and on what terms. They assess a risk according to the likelihood of a claim being made by weighing up a number of factors and asking for detailed information.

Motorcycle Insurers protect the rider from financial loss by taking on millions of pounds in risk each year. Underwriters are needed to identify and calculate the risk of loss from policyholders, establish appropriate motorcycle insurance premium rates, and write policies that cover the risk.

The primary function of motorcycle insurance is to act as a risk transfer mechanism between the policyholder and the insurer. The principle of insurance is that the losses of the few are subsidised by the contributions of the many.

The aim of a motorcycle insurance underwriter is to minimise losses for their company and help to make a profit.

So what are the factors that decide your motorcycle insurance premium and why.

The motorcycle itself and the several factors that are linked to it, a mature rider deciding on whether to buy a small moped or a larger sports machine will undoubtedly pay a higher motorcycle insurance premium for the vehicle that has a higher performance.

The value of a motorcycle will affect the premium but only to a certain extent. Generally insurers will have value brackets, so a motorcycle worth between one hundred pounds or three thousand pounds will not see a difference in the premium charged, however, once the value brackets increase so will the motorcycle insurance premium.

Security on a motorcycle whether it is fitted as standard by the manufacturer or a device that the rider has purchased himself will have an affect on the insurance premium, generally however, only if it is an electronic device such as an alarm or immobiliser. Chains, disc locks and ground anchors are all preventative measures but do not usually merit a discount on the premium.

Where the motorbike is kept when not in use at the home address is an important factor for underwriters. In areas where the risk of theft is high due to an inner city postcode or a high value or prized motorcycle, being able to garage the machine will have a significant affect on any motorcycle insurance premium. Keeping your vehicle on a driveway or private property would be seen more beneficial by an underwriter than perhaps keeping it on a public highway.

The age and experience of the rider has a huge impact on the motorcycle insurance premium. An underwriter will deem a younger rider a higher risk, as he would a rider who has only just obtained his full licence. A rider who has a tarnished driving record whether it be motoring endorsements on a driving licence or involvement in road traffic accidents will influence an underwriter’s decision on the motorcycle insurance premium he will quote.

On the surface, underwriting seems quite a simple process. Insurers ask you the questions that are designed to capture the information they need to build a clearer picture of you, and the factors which might increase the likelihood of you making a claim. Upon completion of a quotation and gathering all the necessary information, underwriters may

* Offer cover on standard terms

* Impose additional conditions, such as insisting on a certain type of security is fitted to the motorcycle.

* Exclude part of the risk, such as theft cover if the policyholder has already experienced more than one theft claim.

An underwriter may lose business to competitors if he appraises risks too conservatively, or he may have to pay excessive claims if the underwriting actions are too liberal.

Either way, you the motorcyclist pays your motorcycle insurance premium in good faith on the understanding your insurer will indemnify you in the event of a claim.

The cost of bike insurance is largely due to statistics. Knowing the different factors that affect how much you pay for your insurance premium can help you save money when renewing or taking out a new policy.

Many factors can play a role in determining your insurance costs. The elements that affect how much you pay for your premium can include: type and style of bike, age and sex of the rider, bike security and bike mileage – to name but a few.

Bike insurance providers take into account the potential for theft or damage to your bike. If you show evidence that you can protect your bike from getting stolen or damaged then you can lower the cost of your insurance. Therefore, consider where you store your bike – it’s best to keep your motorcycle in a locked garage at night. Also, ensure your bike is secure with an approved security device.

Speeding convictions can lead to higher insurance costs. Insurance savings can be gained by maintaining a good driving record and avoiding any points on your license. By driving safely and cautiously you can not only maintain the condition of your bike, but also benefit from a no claims bonus when renewing your bike insurance.

If you are an experienced or older rider then it is possible to achieve discounts on your insurance. Statistics show that older bike owners tend to make fewer claims, whilst younger bike owners are a higher risk for accidents. However, young riders don’t just need to wait for nature to take its course. Riders that have passed their Compulsory Basic Training (CBT) can see a reduction in insurance premiums if they achieve a full license. Further discounts may be achieved with some bike insurers if the rider passes the Institute of Advanced Motoring’s Advanced Motorcycling Test.

Bear in mind that more powerful bikes and older bikes pose a higher risk to insurers. The type, make, style and age of the bike you own will all have an impact on the cost of your premiums and should be taken into consideration prior to purchase. The older the bike and more miles it has driven will lead to wear and tear making it more likely to break down. Likewise, high mileage each year on a newer bike can also lead to maintenance problems.

The cost of bike insurance premiums can vary widely among insurance providers. You can find great deals on bike insurance by shopping around but it’s more important to compare policies with the type of cover that best suits your needs.