One
of the great ironies of life is that the people who need insurance
the most are the ones who are least likely to buy it: young
people under 25, particularly those owning a motorbike.
Motorcycles are a big hit with this young
crowd but their enthusiasm is not shared by the insurance companies. Young motorcycle
riders would have some trouble finding an insurance company
willing to oblige with a cheap cover. The reason is quite
simple: an alarming rate of accident which corresponds with
a devil-may-care attitude that is common among the young.
Younger
bikers (under 25 years) are disproportionately more susceptible
to accidents than riders who are older. A 17-year-old
astride a 350cc bike is a higher risk for the insurance company
compared to a 25-year-old riding the same bike. Whether the
cover is for third party theft, accident or fire, the teenager
is three times more likely to need to claim; and a 21-year-old
would be twice as likely to do so. A recent survey has firmly
established that the insurance companies’ anxiety in
this regard is not totally unfounded or irrational.
But
that will not deprive the teenager from getting insurance.
The
youngster would have to pay higher premiums as well as
a higher excess (the first amount of any claim). In the case
of a 17-year-old driving a 750cc bike this can be as much
as £200.
The excess is correspondingly less for older drivers. So
if you are 25 and ride a modestly sized bike, you are likely
to be asked for an excess of £25 only each time you
claim for theft or fire.
You would find two types of motorcycle insurance policies.
One covers the rider (the specified rider policy) while the
other covers the specified two-wheeler and not the rider.
The former is the most common type covering the rider allowing
him to ride any motorcycle up to a particular size.
Can
you get discounts as you would in a car insurance product?
The answer would depend on how long you have been loyal and
claim-free (meaning how long you have avoided accidents).
Otherwise, do not expect any kind of discount.
There is, however, one way of saving money. Attach a sidecar
permanently to your motorbike, which would give it more balance
and make it a lot more difficult for it to be knocked over,
making the whole vehicle bigger, easier for other drivers
to see, so less likely to be hit.
For the insurance companies, the country is divided into
two districts: one includes major cities and the other is
the rest of the country. The cities are then split into inner
and outer areas. The centre of the city will cost the most,
which means if you happen to be living somewhere in the heart
of the city, the premium you pay for your motorbike would
be higher than that paid by someone living in the suburbs.
If
you are not hopeful of getting a good insurance quote because
you are young, then you might try an insurance broker.
You are more likely to get a cheap quote from brokers as
they have negotiated certain terms with insurance companies.
Insurance companies usually oblige such brokers in the hope
of getting more business from them.
It
would also help to research different insurance companies
and their products. Your priority is not a cheap cover. You
must make sure that you are adequately insured. Because if
an accident happens you might have to pay out a ridiculous
amount as
excess while making a claim. A cheap cover could also mean
the cost of repairs are not included, or worse
still, does not include personal liability to anyone you
may have injured. That is why it makes sense to read the
fine print carefully.
Insurance
providers manage their risks by using a sophisticated rating
structure to determine your road skills. Thus they
would feel more comfortable giving you a cheaper insurance
policy if you are more skilled with your motorcycle. There
are certain other factors which might also fetch you a cheaper
policy, such as a low annual mileage, the value of your bike
being low, having owned your bike for a longer period of
time, and having not claimed for a certain amount of time.
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