Get the best motorcycle insurance in Australia to cover the damage that may incur when riding a motorcycle.
Motorcycle insurance is similar to car insurance. It covers the damage to your motorcycle if you are involved in a collision with another vehicle.
The damage to a third party is also covered, which may involve medical expenses, property coverage, etc.
For more understanding, I have collected the list of the top 10 motorcycle insurance in Australia, comprising the coverages, price, and features. Read on.
Key Takeaways:
- What motorcycle insurance is and how to buy it.
- The things to look out for before buying a motorcycle insurance policy.
- The 10 best motorcycle insurance in Australia.
What Is Motorcycle Insurance?
Motorcycle insurance is a stand-alone form built to provide suitable coverage for a variety of motorcycles in the event of an accident.
It is similar to auto insurance because it provides coverage for the loss or damage of an insured motorcycle and damage caused to a third party.
Motorcycle insurance covers liability costs.
Liability insurance is the coverage for the damage caused to someone. Motorcycle insurance covers the damage done to a victim (third party) when riding it.
The expenses for the damage are called liability costs. It comprises medical bills, property damage, and legal defense if the person sues you because of the accident.
Liability insurance uses a series of numbers like 25/50/25 to illustrate their coverage.
- $25,000: For bodily injury to a person involved in an accident.
- $50,000: For bodily injuries to many people involved in an accident.
- $25,000: For property damage in an accident.
Types Of Motorcycle Insurance
There are three types of insurance policy motorcycle insurance offers.
1. Comprehensive Coverage
It provides compensation if your motorcycle is damaged or lost due to vandalism, fire, wind, hail, etc.
2. Uni-secured Motorist Coverage
Motorcycle insurance provides coverage when you crash with a third party who has no insurance to cover the damage.
3. Passenger Liability
It offers compensation for the injuries that your passenger may have in the event of an accident.
Note: But, it does not provide coverage resulting from racing, criminal acts, or under the influence of alcohol.
Advantages Of Buying A Motorcycle Insurance Policy
The benefit of motorcycle insurance is that it covers different claims on the insured motorcycle such as:
1. Covers Disaster
Disasters could be natural (storm) or man-made (fire) disasters. It is irresistible and may come unknowingly and damage one’s property including the insured motorcycle. However, the motorcycle will be covered.
2. Protection Against Theft
When an insured motorcycle is vandalized, the motorcycle insurance company that has its policy will cover it. It could be replacing it with a new one or giving the total cost of the damage to the insured depending on the rate of damage to the motorcycle.
3. Protection Against Accidental Damage
Any accident involving your motorcycle is covered including the damage extended to a third party.
4. Provision For Rider Protection
Motorcycle insurance provides rider protection such as helmets, for the insured and the passenger to protect them from accidental injury.
Disadvantages Of Buying A Motorcycle Insurance Policy
The drawbacks associated with having a motorcycle insurance policy include:
1. Expensive
The major drawback that most individuals experience is the high cost of the policy. Though it depends on the plan an individual wants, typically, it is expensive.
2. Prone To Dangers
Having motorcycle insurance exposes an insured to some theft. Criminals would steal the motorcycle because of the coverage the insurance company will provide.
3. Limited Coverage
Motorcycle insurance does not provide coverage for the damage resulting from racing, under the influence of alcohol, or criminal acts.
Some do not provide all the coverage agreed on in the policy while some delay in rendering the service. All these can lead to financial risk.
How Motorcycle Insurance Works
Motorcycle insurance works similarly to car insurance. It covers damage to your motorcycle, injuries, and properties including the third party.
The coverage includes collision, theft or vandalism, fire or storm outbreaks, etc. The coverage is only provided to the insured.
If you cover more than one motorcycle with different riders in the same policy, a discount of 20% is given but if you are the rider of all the motorcycles covered, a discount of 5% will be given to you.
However, when any of the motorcycles covered damage in an accident, notify your insurance company. They will evaluate the incident and compensate you according to the cost, but if the fault is from the insured such as riding it under the influence of alcohol, they will not cover the damage.
Factor To Look Out For Before Buying A Motorcycle Insurance Policy
Evaluate and compare the services of each insurance company before purchasing a motorcycle insurance policy.
Here are some of the things to look out for:
1. The Kind Of Motorcycle Insurance Policy
There are a plethora of motorcycle insurance policies in the market. Classify the plan you want and compare it with other insurance companies.
2. The Claim Settlement Ratio
The claim settlement ratio is the ratio of the claims paid by an insurance company against the total number of claims incurred during a financial year.
The claim settlement ratio reveals how good an insurance company is based on settling claims (providing coverage).
Therefore, ensure you have a complete idea of the CSR of the motorcycle insurance policy and how to claim it to avoid loss on your side.
3. The Policy Exclusions
Another thing to consider is what the insurance company does not cover. It helps the insured to know what to claim for and not get rejected due to claiming what it does not provide.
4. The Premium Amount
Premium is the amount paid by the insured to activate the benefits. It is calculated depending on the factors such as No Claim Bonus (NCB), Insured Declared Value (IDV), policy type and term, etc.
A motorcycle insurance policy is necessary but it is better to buy based on the premium amount. For instance, the average cost of motorcycle insurance is $519 per year or $43 per month.
5. Network Of Collaborator Garage
If your insurance company has a significant number of prepaid garages, you can guarantee a hassle-free experience while obtaining your vehicle repaired at the cost of an accident.
Thus, it is necessary to confirm the number of network garages protected by a policy because the more there are garages, the greater the range.
How To Buy Motorcycle Insurance Quote
To buy a motorcycle insurance policy, you need a quote. You can buy the quote online depending on the one easier for you.
Below are the ways through which you can buy a motorcycle insurance policy.
- Get An Agent: Get and talk with an agent concerning the customization of the motorcycle.
- Provide Information About The Motorcycle: Every detail about the motorcycle including engine size, model, etc should be provided.
- Driving History: Provide the details of your driving skill and history: events associated while driving.
- Thereafter, submit the information.
Through the agent, you will get the quote. The agent is available to facilitate the processes involved and help you get the quote.
The need for the quote is to be aware of the plans and coverage of the insurance company.
List Of The 10 Best Motorcycle Insurance In Australia
Some motorcycle insurance that is best in covering an insured motorcycle includes:
1. Budget Direct Motorcycle Insurance
Budget Direct is one of the best motorcycle insurance in Australia that covers both on-road and off-road motorcycles for personal use.
Budget Direct has three policy options: comprehensive motorcycle insurance, third-party property only, and third-party property, fire, and theft insurance.
Comprehensive insurance comes with additional options: hiring the motorcycle after an accident and buying coverage for your riding gear.
Features
- Flexible Payment Option: The premium for this motorcycle insurance can be paid monthly or yearly depending on the plan of the insured. Also, riders can opt for a lower or higher premium.
- Cooling-Off Period: Budget Direct is known for providing a 21-day cooling-off period. During this period a policyholder can cancel the policy if he has not made any claims.
- Comprehensive Coverage: It allows the hiring of motorcycles after accidents.
Price
Budget Direct offers an affordable price and comprehensive coverage, making it outstanding for expert riders with older bikes.
However, it offers a lower premium of 20% NID.
Pros
- It is customizable
- It offers a 5% discount for Singapore riders
- It gives affordable premiums to riders with 20% NID.
- It provides the highest day-to-day transportation allowance benefit.
- It offers a comprehensive plan to riders with a 10-year-old plus bike.
Cons
- It is expensive for young and class 2A bike riders.
- It requires extra payment for most benefits.
2. Shannons Motorcycle Insurance
Shannons provide two motorcycle insurance policies to meet insured different claims.
They include third-party legal liability only and comprehensive insurance.
A third-party legal liability policy covers the damage to a victim while comprehensive insurance covers the damage to an insured.
Features
- Value Cover: Shannons provide cover equivalent to the damage on your motorcycle.
- It has an automatic trailer cover.
- Flexible Premium: The premium can be paid monthly, quarterly, or annually.
- Choice Of Repairer: Shannon allows the insured to choose the repairer of his damaged motorcycle.
Price
Shannon has no specific price as a premium because the agreed value of a motorcycle influences the cost of the premium.
However, It provides up to $20 million for legal liability cover, and $3,000 for the riding gear cover, with a peak of $1,000 per item, for damaged or stolen motorcycles.
Pros
- It offers discounts to its customers.
- It allows selecting a higher excess to enjoy lower insurance premiums
- It covers a defensive driving course.
Cons
- It does not cover damage from sports or racing.
- It does not provide coverage outside of Australia.
3. Youi Motorcycle Insurance
Youi offers three insurance policies with excellent coverage to all its customers. It covers accidental, storm, or flood damage and damage to a third party.
It replaces a stolen motorcycle but does not cover a motorcycle when it is stolen during racing.
Features Of Youi Motorcycle Insurance
- Third-Party Property: Youi covers the damage to a victim’s property in the event of an accident.
- Third-Party Theft and Fire: It covers your motorcycle when stolen or damaged by a disaster.
- Comprehensive Coverage: It provides coverage for accidental damage.
Price
The insurance company provides up to $20 million in legal liability for the damage.
Pros
- It covers the medical cost in the event of an accident.
- It provides damages for the damaged property including the third party’s.
Cons
- It does not cover a stolen motorcycle during racing.
- Youi does not cover injuries from sports.
4. QBE Motorcycle Insurance
QBE is an insurance company mentioned on the Australian Securities Exchange founded in 1886.
It offers different products such as commercial, personal, and specialty products and motorcycle insurance plans.
Features
- Market Value: It allows the policyholder to insure his motorcycle for an agreed market value.
- It allows an authorized long-term repair guarantee.
- It allows the hiring of motorcycles after theft or accident.
Price
QBE motorcycle insurance provides up to $4,000 for motorcycle apparel, $100 for travel expenses, and $1000 for emergency accommodation and transport costs.
Pros
- It provides an accidental cost.
- QBE covers theft and fire damage to an insured motorcycle.
Cons
- It does not cover third-party accidental costs and damaged properties.
5. Swann Motorcycle Insurance
Swann is one of the leading providers of motorcycle insurance in Australia and it offers coverage for 720,000+ customers.
The motorcycle claims include dirt bike cover, third-party liability, comprehensive and third-party fire, and theft.
Swann’s insurance policy is underwritten by Australian Insurance Limited.
Features
- Dirt Bike Cover: The policy covers every recreational dirt bike against fire, theft, and accidental damage.
- Third-Party Liability:The Swann motorcycle insurance policy covers damage done to someone’s property during an accident involving an insured motorcycle.
- Comprehensive Coverage: It covers you and your motorcycle for any accident.
Price
The comprehensive cover provides $5,000 for emergency expenses, $1000 per day for car hire for 15 days, and up to $20 million cover for legal liability.
However, the bonus is incurred for making no claims.
Pros
- It covers all legal liability costs.
- It covers damage from fire and theft.
- The comprehensive cover allows the replacement of the motorcycle with a new one.
Cons
- Dirt bikes, third-party fire, and liability do not cover malicious damage.
- Third-party fire and liability do not provide helmet cove benefits.
6. AAMI Motorcycle Insurance
AAMI Motorcycle insurance automatically provides cover for damaged motorcycles based on the manufacturer’s opinion.
Features
- It provides the best coverage which is the comprehensive insurance policy.
- It provides coverage for third-party damaged property.
- Multi-Policy Discount: AAMI motorcycle insurance offers a discount when you buy multi-policy from the company.
- A.A Strong Rating: AAMI has a very strong claims-paying ability.
Price
AAMI motorcycle insurance provides $20 million for Legal liability cover, $1,000 for riding apparel and locks and key cover, and $500 for personal property coverage.
Pros
- It covers an authorized lifetime repair guarantee.
- It provides a new motorcycle for replacement of the damaged one.
- It covers accidental damage and damage to a third-party property
- It offers excellent customer service 24/7.
Cons
- It does not accept claims resulting from racing or sports.
7. Eric Motorcycle Insurance
Eric motorcycle insurance is an insurance policy that protects motorists against damage due to accidents. The cover depends on the type of insurance policy taken out.
The insurance company has two different insurance plans: comprehensive motorcycle insurance and fire, theft, and third-party property damage (FTTPPD).
The comprehensive motorcycle insurance covers accidental damage while the FTTPPD covers any legal liability for third-party damage.
Features
- It provides the replacement of a damaged motorcycle with a new one.
- It covers damage caused in the event of an accident.
- It provides legal liability for a victim’s damaged property
Price
- It provides $1,000 for a motorcycle helmet.
Pros
- It is a reliable and transparent insurance policy.
- The customer service is excellent.
- It offers road assistance benefits if your vehicle breaks down on the road.
Cons
- It does not cover damage that results in racing or sporting events.
- It does not cover pre-existing damage on a motorcycle.
8. Suncorp Motorcycle Insurance
Suncorp motorcycle insurance provides the best motorcycle coverage that keeps their customers getting on.
Features
- Cover For Accidental Loss: It provides coverage for the damage that occurs in the event of an accident.
- Cover Damaged Properties: It covers the third-party damaged property in an accident involving an insured motorcycle.
- It Allows A Lifetime Repair Guarantee: It provides quality materials and workmanship which guarantees the long-lasting of the motorcycle.
Price
Suncorp provides $2,000 for the repair of damaged riding costumes, $20 million for loss or damage caused to third-party properties, and up to $5,000 for damage by an uninsured driver.
Pros
- It provides a replacement for motorcycles if severely damaged
- It covers all the necessary costs like medical costs, etc.
- It allows the hiring of motorcycles under the insurance policy.
Cons
- It does not cover damage caused by racing.
- The policy is expensive.
9. NRMA Motorcycle Insurance
NRMA offers different kinds of motorcycle insurance including, FTTPPD and comprehensive motorcycle insurance with $29 million on legal liability cover and $5,000 for damage by an uninsured motorist.
Features
- Medical Cost: It covers the medical expenses incurred in an accident.
- Emergency Repair: It immediately repairs the insured’s damaged motorcycle.
Price
NRMA motorcycle insurance provides $20 million cover for legal liability and $5,000 for no-fault damage.
Pros
- It covers emergency repair.
- It provides suitable coverage for each insurance policyholder.
Cons
- The policy is expensive.
- It does not cover the damage resulting from sporting events.
10. CGU Motorcycle Insurance
CGU provides all the necessary coverage needed to cover accidental damage involving an insured motorcycle.
Features
- Choice Of Repair: CGU allows the insured to choose a repairer for their damaged vehicle.
- Accessibility: The insurance company is always active and offers 24/7 claims to their customers.
- Replacement Of Motorcycle: It replaces a damaged motorcycle with a new one, providing convenience to its customers.
Price
- It gives 30 million for legal liability protection to cover the damage done by an insured motorcycle.
- It offers $5,000 to cover the damage caused in a no-fault accident with an uninsured motorist.
- And $2,000 for a helmet benefit.
Pros
- It provides full coverage for damage caused by an uninsured motorist.
- It covers emergency repairs.
- Customer service is 24/7.
Cons
- The policy is expensive.
- The offer is limited to individuals below adult age.
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Conclusions
Motorcycle insurance is the agreement designed to provide suitable coverage for a variety of two-wheeled vehicles in the event of an accident.
It is the agreement between an insurance company and a motorcycle owner for the well-being of the motorcycle and the third party.
Though different motorcycle insurance companies offer unique coverage based on their policy, Budget Direct motorcycle, one of the best motorcycle insurance in Australia offers on-road and off-road personal use coverage. It offers all kinds of motorcycle insurance though it is expensive as it requires extra payment for most benefits.
FAQs
Here are some answers to your questions.
What Does Motorcycle Insurance Cover?
Motorcycle insurance covers:
- Property damage liability.
- Bodily injury liability.
- Commission coverage.
- Medical coverage, etc.
Can I Ride A Motorcycle Without Insurance In Australia?
No.
Motorcycle insurance is compulsory by law in Australia and riding it without insurance incurs a penalty.
Can More People Insure The Same Motorcycle In Australia?
Yes. Two insurance policies on one motorcycle allow it.
Is Motorcycle Insurance Expensive In Australasia?
It depends on the motorcycle insurance company you partner with. Some motorcycle insurance policies are expensive while some are lesser.
References:
https://www.productreview.com.au/c/motorcycle-insurance
https://www.suncorp.com.au/insurance/motorcycle.html
https://www.shannons.com.au/insurance/motorcycle-insurance/
https://www.finder.com.au/car-insurance/motorcycle-insurance/nrma
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- I am a writer and researcher, a practical digital marketer, and a copywriter who communicates value to a society based on years of experience and knowledge in the field.
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