Motorcycle Insurance Guide
Motorcyclists on Australian roads must pay for Compulsory Third Party (CTP) insurance to cover their personal injury liability for other road users.
This is included in your registration fee in most states, although you buy a separate CTP policy, known as a greenslip, if your bike is registered in NSW.
It won't cover the cost of any damage you may cause to your own or others' property, so most motorcyclists choose to take out a separate policy.
There are three main types of motorcycle insurance available.
Third Party Property Damage Motorcycle Insurance
If you damage someone else's property on the road, you have a legal obligation to pay for it. Even slight damage on a premium sports car can set you back thousands of dollars, while damage to a building could be much higher. A basic policy to cover your liability is essential.
Insurers often offer extra features to these policies. Look out for uninsured motorist damage, which will pay out if you are in an accident with an uninsured driver that was their fault.
Some insurers may also offer a towing service, or legal fees cover.
Third Party, Fire and Theft Motorcycle Insurance
With this policy, your liability for other people's property is covered, as well as your own costs if your bike is stolen or catches fire.
This policy is generally cheaper than a full comprehensive insurance policy, but with better cover than basic third party property damage.
If you choose this policy, look out for insurers who will let you choose your own repairer, as it will probably end up being more convenient to you.
Comprehensive Motorcycle Insurance
Comprehensive insurance is generally more expensive than a basic third-party policy but covers your repair bills or the cost of replacing your bike in an accident.
Insurers also offer a whole host of extras with comprehensive cover, making this type of insurance good value for money.
Features to look out for include:
• your own choice of repairer
• good coverage for your riding gear
• a lifetime guarantee on repairs
• the option to hire a car while your bike is off the road
• cover for modifications.
There are several specialist motorcycle insurers who may be able to offer a better deal, especially if your bike is rare or modified. In this case, you should look into an agreed value rather than a market value on your policy.
Agreed value means your insurer will pay out a sum you have agreed together, rather than what they decide is the market value.
There are a number of ways to bring down your insurance bill. Agreeing to pay a higher excess on any claims is one way, although be aware that this could work out to be quite expensive if you do have to claim.
You could also keep your car in a garage every night, or if you don't use your bike every day, let your insurer know that your annual mileage will be low.
Buying Motorcycle Insurance
There are several insurers offering motorcycle insurance, including companies that specialise in bikes. To get a fuller picture of the market, use our comparison tool and get a selection of quotes before deciding which policy best suits you.