Motorcycle Insurance

By: EconomyWatch   Date: 26 May 2010

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Research shows the importance of bike insurance since motorbike riders account for 20% of all serious road accidents. Bike insurance is mandatory by law in most countries. However, the minimum limit can vary from country to country.

Types of Bike Insurance

An individual can choose from three types of bike insurance. The most general motorcycle insurance policy offers only third party insurance and covers damage caused by the insured motorbike to another person. The second type of motorbike insurance is theft and third party insurance. This type of insurance offers the benefits of third party insurance and financial loss in case of bike theft. Comprehensive bike insurance covers most of the financial expenses incurred due to an accident or theft.

Benefits of Comprehensive Bike Insurance

Comprehensive motorbike insurance has an extended cover which includes:

  • Repayment of the bike's market value, in case of theft or complete damage.
  • Entire cost of repair if the bike is damaged in an accident.
  • Lifetime guarantee on repairs and parts from authorized centers of the manufacturing company.
  • Accessories and modifications can also be covered to a certain limit.
  • Greater third party cover to shield the policyholder against all financial liability.
  • Motorbike gear, such as helmet, leather jacket, boots and music player, can also be included in the cover exclusively.
  • Cost benefits to trained riders carrying declaration certificates.

In European countries, a comprehensive cover includes riding throughout the EU nations at no extra cost. Postal code, age and cost of the bike, biker's experience, mileage, driving record affects the bike insurance premium.

Insurance for Custom Made Motorbikes

Choosing an insurance policy for custom-made bikes can be a tough task. Custom-made bikes have expensive parts and accessories, which most insurance companies do not consider part of the insurance cover. Most custom-made bikes are used for adventure sports, such as off-road riding, tours, racing and stunt performances. Hence, they are highly prone to accidents or mishaps. An individual needs to search on the internet or refer to the local vehicle authority to get more information about the insurance companies that offer custom-made motorbike insurance.

To safeguard one's own motorbike and third party property, a bike insurance policy is a must for all motorcycle owners.


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