Motorcycle Insurance Explained

Embarking on the open road astride your motorcycle is an exhilarating experience, but it also comes with responsibilities. One of the most crucial is securing the right insurance. While the thought of insurance might seem daunting, understanding its nuances is vital for peace of mind and legal compliance. This guide aims to demystify motorcycle insurance, covering everything from basic policy types to more complex scenarios, ensuring you're well-informed and adequately protected.

What is Motorcycle Insurance?

Much like car insurance, motorcycle insurance is designed to provide financial protection in the event of an accident, theft, or damage to your bike. It's a contract between you and an insurance provider, where you pay a premium, and in return, they cover specified losses. The primary purpose is to safeguard you against the significant costs that can arise from unforeseen events on the road. At its most basic, it ensures you can cover the damage you might cause to another person's vehicle or property, a legal requirement for all riders in the UK.

Types of Motorcycle Insurance

The world of motorcycle insurance offers various levels of cover, each catering to different needs and budgets. Understanding these options is key to selecting the most appropriate policy for your circumstances:

Beyond these core types, many insurers offer additional features that can be added to your policy, such as:

• 24-hour Emergency Helpline: For assistance in emergencies.
• Courtesy Car: A replacement vehicle if yours is unrideable due to an insured incident.
• Personal Injury Cover: Protection for yourself and any passengers in the event of an accident.
• Riding Gear Cover: Protection for your helmet, leathers, and other riding apparel.

Is My Bike Insured? Checking Your Policy

Forgetting to renew your motorcycle insurance is a common oversight, but easily rectified. If you're unsure about your current cover status, several straightforward methods can provide clarity:

• AskMID Online Tool: The Motor Insurance Database (MID) allows you to check if your vehicle is currently insured. Simply enter your registration number on the askMID website.
• Policy Documents: Your insurer will have sent you policy documents, typically via post or email. Reviewing these will confirm your coverage details and expiry date.
• Contact Your Broker: If you purchased your insurance through a broker, they will have your policy information readily available and can confirm your coverage.

Modifications and Insurance: A Crucial Point

Modifying your motorcycle can significantly impact your insurance. While some insurers may cover modified bikes, not all do, and they may not cover the full value of the modifications themselves. The golden rule is to always inform your insurer about any modifications, whether they are present at the start of the policy or planned for the future. Failing to do so can invalidate your insurance. If you've modified your bike without notifying your insurer, your policy is likely void because the bike is no longer as originally declared.

No Claims Discount (NCD): Preserving Your Benefit

Your No Claims Discount (NCD) is a valuable benefit that rewards you for claim-free riding. The industry standard allows your NCD to remain valid for two years after your last policy expires. However, some insurers, like MCE, may extend this to three years. If you plan a break from riding, ensure you obtain proof of your NCD from your insurer when your cover ends. Insurers typically don't retain these records indefinitely, so keeping your NCD proof safe is essential.

Informing Insurers: The Power of Transparency

When seeking new insurance quotes, it's advantageous to be upfront with potential insurers about your previous premium or cheapest quote. This provides the sales executive with a benchmark to beat, potentially leading to a more competitive offer. Transparency fosters trust and can result in better deals.

Payouts: Agreed Value vs. Market Value

When an insurer pays out following a claim, the assessment is based on the value of the bike at the time of the claim, not necessarily the agreed value at the policy's inception. For bikes less than six months old, you might be entitled to a brand-new replacement, but this is policy-dependent. Some brokers do offer agreed values for classic or modified motorcycles, which is worth exploring if your bike falls into these categories.

Limiting Your Annual Mileage: A Potential Saving

If you're a rider who doesn't cover many miles annually, limiting your mileage can lead to a reduction in your insurance premium. Insurers often offer discounts for lower annual mileage, as it generally correlates with a reduced risk of claims. For instance, Bennetts, part of MCN Compare’s panel, suggests potential savings of around 12% for those who limit their mileage.

Pillion Cover: An Optional Extra?

Insurers are increasingly making pillion cover an optional extra. Pillion passenger injuries can lead to substantial claims for insurers. Some providers offer a discount on basic insurance policies if you choose not to include pillion cover, reflecting the reduced risk associated with carrying a passenger.

Motorcycles on Hire Purchase: Understanding Payouts

If your motorcycle is on hire purchase, the finance company has the first charge on the vehicle. In the event of a total loss, the finance company will be settled up to the outstanding amount owed. Any remaining funds after the settlement would be paid to you. However, due to vehicle depreciation, it's unlikely there will be a shortfall that you would need to cover, or a surplus for you to receive. This is where GAP (Guaranteed Asset Protection) insurance can be beneficial, covering any shortfall between the market value and the outstanding finance.

Riding with a Banned Licence or SORN'd Bike

Most insurance policies stipulate that you must hold a valid driving licence to remain covered. If you are banned mid-term, you will likely need to cancel your standard policy unless it allows for a named rider with a valid licence. If you plan to SORN (Statutory Off Road Notification) your bike for an extended period, firms like MCE offer 'laid up' insurance. This typically covers fire and theft while the bike is in storage, providing essential protection during a voluntary break from riding.

Transferring No Claims: Car to Motorcycle

Generally, you cannot transfer a car No Claims Discount directly to a motorcycle policy. However, some insurers do permit the transfer of a motorcycle NCD to a car policy, suggesting a recognition of good driving behaviour across different vehicle types.

The 'Cooling-Off' Period: Your Right to Cancel

You typically have a 14-day cooling-off period from the policy's inception date to cancel your insurance. Be aware that administrative charges, usually between £40-£50, may apply. However, if the policy documents reveal information that was not disclosed during the sales call – such as the excess level or a garaging clause – and you believe this omission was significant, you may be able to cancel without charge. Sales calls are often recorded, which can serve as evidence of any misrepresentation.

Complaints Procedure: Seeking Resolution

The insurance industry is regulated by the Financial Conduct Authority (FCA). Every insurance firm must have a complaints procedure that complies with FCA rules. If you are unsatisfied with the outcome of a complaint made directly to your insurer, you generally have six months from the date of the final response to escalate the matter to the Financial Ombudsman Service (FOS). It's crucial to exhaust the insurer's internal complaints procedure first.

Riding to an MOT Test: Legal Considerations

If your motorcycle's MOT has expired, you can legally ride it to a pre-arranged MOT inspection, provided you are in possession of a valid insurance policy. While there are no strict guidelines on the distance to the test centre, it is advisable to choose a local garage and take the most direct route. If your motorcycle fails the MOT, you must contact your insurance provider to ascertain whether your policy permits you to ride the vehicle away from the test centre.

Immobilisers and Insurers: Understanding the Question

When an insurer asks if your bike has an immobiliser fitted, they may not always be aware that these are standard on most modern motorcycles. Online proposal forms can sometimes have limited security question options, leading to automated or general queries. A quick call to your insurance broker or provider should clarify any confusion regarding the security features of your specific model.

Understanding your motorcycle insurance is not just about meeting legal requirements; it's about safeguarding your passion and your finances. By familiarising yourself with policy types, the importance of disclosure, and your rights as a policyholder, you can ride with confidence, knowing you are adequately protected on every journey.

Frequently Asked Questions

Q1: Do I need to inform my insurer about minor cosmetic modifications?

A1: Yes, it is always best practice to inform your insurer of any modifications, no matter how minor they may seem. Even cosmetic changes can alter the perceived value or risk associated with your motorcycle.

Q2: What happens if I lend my motorcycle to a friend?

A2: This depends on your policy. Some comprehensive policies may cover a named rider, but it's crucial to check your policy documents or speak to your insurer. If your friend isn't named on the policy and isn't covered, any accident could leave you uninsured.

Q3: Can I get insurance if I have previous driving convictions?

A3: While previous convictions can make obtaining insurance more challenging and potentially more expensive, it is usually still possible. Be honest about any convictions when applying, as non-disclosure will invalidate your policy.

Q4: What is excess in motorcycle insurance?

A4: Excess is the amount you agree to pay towards any claim you make. It’s usually a fixed amount, and having a higher voluntary excess can sometimes lower your premium, but remember you’ll have to pay this amount if you claim.

Q5: Is my riding gear covered under a comprehensive policy?

A5: Not all comprehensive policies automatically include cover for riding gear. You may need to add this as an optional extra or ensure your policy specifically states it is covered.