Motorcycle Insurance
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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.
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.
Table of Contents
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.
[break]Moped Insurance
Moped insurance provides financial cover against damage due to fire, theft and accident. With a rise in the theft of mopeds and higher accident rates, most nations require mandatory moped insurance. An individual can face fines or even a prison term for riding a non-insured moped.
What Does Moped Insurance Cover?
Moped insurance is similar to motorbike insurance. Liability insurance or third-party insurance is a basic necessity for moped owners. It shields the policyholder against legal penalties for damaging another person’s property. Moped insurance usually also covers damage caused to the vehicle in the event of an accident, fire, theft and vandalism. The policy should clearly define whether the coverage includes replacing the vehicle with a new one or an old moped of equivalent market value.
As additional coverage, one can also buy breakdown insurance to get assistance during a crisis. A moped insurance policy with attached medical cover will pay for bodily injuries to the driver in case of an accident.
Factors That Determine Moped Insurance Premium
A number of factors come into play while deciding on the policy premium for moped insurance. The age of the policyholder or driver has a significant influence on the premium rate. Young drivers are prone to road accidents and violating traffic rules. They, therefore, have to pay higher premiums for moped insurance. The driving record of the policyholder also impacts the policy rate. Some regions witness frequent vehicle thefts, which affects the policy premium negatively. The greater the distance covered, the higher are the chance of an accident. So if an individual drives the moped for thousands of miles annually, s/he has to pay a higher amount as premium.
Every moped insurance policy has deductibles or an excess amount agreed to by the policyholder. This is the amount that the policyholder has to pay before the insurance company begins to pay for the cover. If the excess amount is higher, the premium declines automatically. If the damage is very close to the excess amount, it is preferable to avoid filing a claim and pay for the repairs oneself. This way one can accumulate cost benefits from a ‘no claims’ bonus.
[break]Scooter Insurance
Scooter insurance provides financial cover against damage caused to the policyholder in the event of an accident, fire or theft. It may also cover liabilities attributed to the policyholder for damage to another person’s property. The scooter insurance market is very comprehensive, with several insurance companies offering their services. An individual can choose from a range of insurance policies that differ in coverage and premium.
Most insurance companies offer two types of scooter insurance – personal cover and third party insurance. Personal cover provides protection against damage to the scooter in case of fire, accident or theft. However, third party insurance provides financial cover against damage caused to another person by the insured scooter. This insurance also protects the policyholder against any form of legal or financial liability in case of an accident.
Third-party insurance is relatively cheaper than personal cover scooter insurance and is required by law in many nations. Third party scooter insurance does not, however, cover damage to the insured scooter or the policyholder.
Tips to Buy Scooter Insurance
# Think of long-term investment: Buying a ‘no-claim’ bonus policy can offer long-term investment benefits. Policyholders will get a bonus in terms of lesser premium if s/he has no insurance claims for a period of a year or two.
# Online shopping: Search for online scooter insurance quotes from various insurance companies. A thoughtful comparison of different insurance policies will help to buy a cost-effective scooter insurance policy. Some insurance companies offer price discounts on buying policies online. However, read the terms and conditions of any policy carefully, since there can be hidden clauses to restrict the cover.
# Ensure deductibles: This is the amount that has to be paid by the policyholder before the insurance company begins to pay out for the damage. Also, remember that the higher the deductible, the lesser the premium.
# Following traffic rules while driving and securing the scooter with a proper locking system will increase the policy benefits.
Buying scooter insurance is highly beneficial to protect the policyholder from financial losses and legal liabilities. One can search on the internet for the most cost-effective scooter insurance policy.
