InsuranceGuide

How to cut the cost of motorbike insurance

By Victoria Hartley editorial@consumerchoices.co.uk

The cheaper running costs of a motorbike and the freedom of the open road are attracting more and more people each year. Here's how to cut the cost of your insurance.

The cost of insuring a motorbike is "trending upwards", according the Automobile Association (AA), so it’s more important than ever to find the best deal.

How to shop around

Unlike mainstream car insurance, motorbike insurance is a niche product. Getting a broad view of the motorbike insurance market is important as it is a specialist and diverse area.

Comparison sites allow you to compare policy benefits side-by-side and easily check prices against benefits. Also, plenty of insurers offer online discounts.

Individual brokers can also be useful. They can cut costs, offer a good view of the market and in case of an accident can help you make your claim.

But unlike car insurance, for example, motorbike insurance is still a niche market so providers still compete on coverage first, rather than price.

It’s very easy to get drawn in on price, but value for money is key

However, comparison sites always list by price, so just make sure you read the terms and conditions as a top priority.

Also, when making a claim, service is everything, so get a recommendation from a friend or look at user reviews to help inform your decision.

Andy Loynes, spokesperson for specialist motorbike insurance broker, Carole Nash, says: “You only truly understand the poor quality of your insurance policy and broker after an accident and you’re shouting at an uncomprehending call centre.”

He adds: “It’s very easy to get drawn in on price, but value for money is key.”

Tips on how to slash your premiums

While your policy features are key, make sure you've also done your best to keep the cost down:

Buy insurance online
Try to negotiate terms with your insurer/broker and pay the annual premium in one go for the discount
Take an advanced motorcycle test. This can cut premium costs by up to 10%
Secure your bike. Fit a lock and immobiliser approved by your insurer and keep it in a garage at night
Keep your mileage down to less than 5,000 miles a year
Ride safely, for a long time. Five years of claim-free riding can mean a discount of 60%
Increase your excess to lower your premium
Buy a less powerful bike
Ride a classic bike like a Harley Davidson because premiums are cheaper for (often lovingly restored) bikes 15 years old or more
Stay in the saddle – breaks of two years or more can lose you your no-claims bonus
Avoid speeding fines. After more than one ticket premiums jump
Don’t modify your bike. Any modifications that add value or speed affect your premium
Be female. Women have less accidents so attract a 15% discount

Beware policy exclusions

But in your attempt to cut the cost of your policy, be aware that for every price cut you make you could be trimming down policy benefits.

The most popular insurance policy is mid-level third party fire and theft, often because the cost of comprehensive insurance outweighs the cost of the average bike at £2,500. While, third party is the most economical choice, it doesn't cover damage to your bike.

Comprehensive policies offer the best cover, plus extras like damage, vandalism and medical expense coverage.

Other common exclusions include UK and European breakdown coverage or legal protection, riding other peoples bikes in case of an emergency and racing your motorbike. Also, if you commute on your bike, watch out for policies that don’t offer a replacement vehicle leaving you high and dry in an emergency.

Getting the best value motorbike insurance

For the cheapest price and the right coverage you’ll need to shop around, negotiate, and then shop around some more. Household names like the AA or Aviva are always tempting, but sports bike specialist brokers like H&R Insurance or Footman James who specialise in classic bike coverage may offer something extra.

But no matter how many years riding or extra training you have, the statistics show car drivers cause 66% of all accidents. That’s why getting the right features is probably a better goal when buying motorbike insurance than tracking down the best bargain basement price.