New to riding? Here’s what you need to know about insurance
You’ve just bought your motorcycle and you’re all set to ride away, but that little angel on your shoulder whispers the word ‘insurance’ in your ear. Well, read on for why you should listen to that angel.
Why do I need motorcycle insurance?
Compulsory Third Party (CTP) insurance (otherwise known as Greenslip) is a requirement for all motorcycle riders in Australia, and usually comes as part of your motorcycle registration (except in NSW, ACT and QLD where you can choose your insurer). CTP is the minimum level of motorcycle cover available and covers your liability and the liability of anyone else who rides your motorcycle for injuries caused to others as a result of an accident. Note, CTP doesn’t cover your medical costs if you are injured, and doesn’t cover your bike or the other party’s bike/vehicle either. (For CTP through Swann Insurance, call 1800 882 364.)
CTP is great, but if it’s all you have, you’re left exposed to unexpected and potentially enormous costs. To keep out of hot water and feel secure on the road you’ll want Third Party Liability cover at the very least, which will cover damage you cause to another vehicle in a motorcycle accident. Third Party, Fire and Theft covers you a little more, but the best option is Comprehensive insurance.
Which policy should I get?
This is a tough question, and the answer depends on your bike and how you intend to use it. For instance, if your bike is pretty old and you mainly want insurance for circumstances where you cause damage to another vehicle, Third Party Liability cover might meet your needs. Your motorcycle won’t be repaired or replaced, but vehicles you damage should be covered.
If you like the idea of your motorcycle being covered for fire damage and theft as well, Third Party, Fire and Theft cover will suit you (this also covers you for damage to another vehicle in the event of an accident).
If your bike is special to you— it’s new, for example, or you’ve invested in a really cool top of the range bike—you’ll want Comprehensive motorcycle insurance. With Comprehensive insurance, your bike may be repaired or replaced in the event of an accident, and you’re also covered if your bike is damaged by fire, if it’s stolen, and if you damage another vehicle. You can also get optional Roadside & Personal Assistance through Swann Insurance, when you purchase Comprehensive insurance.
Through Swann Insurance you are also able to insure your helmet and riding gear. Or if you’re more about the dirt tracks than the open roads, Swann Insurance also offer Dirt Bike Cover. Conditions apply. See our Motorcycle Insurance Products page for more information or request a motorcycle insurance quote.
I’m pretty young. Can I get motorcycle insurance at my age?
If you’re old enough to hold a valid motorcycle licence to ride on Australian roads, you can obtain motorcycle insurance. An age excess may apply, which will vary according to your age and the age of any riders using your bike at the time of an accident. (When you get a motorcycle insurance quote through Swann Insurance, you’ll receive a policy schedule that will outline the age excess for your policy.)
Can I get motorcycle insurance when I’m on a learner’s permit?
Your motorcycle can be insured if you hold a learner’s permit, however a Licence Excess will apply.
The License Excess applies for any claims made where, at the time of the accident, the rider doesn’t hold a full Australian rider’s license or holds a learner’s permit or probationary or provisional licence.
A couple of exceptions apply. Refer to the Excess For Comprehensive, Third Party Liability, And Third Party Fire And Theft Covers section of our PDS for more info.
What makes premiums higher?
The cost of motorcycle insurance may vary according to your circumstances, how you plan to ride your bike, your age and riding history, and the cost of your bike. Sometimes motorcycle insurance premiums will be higher. Possible reasons for this are:
- You plan to use your bike for business (you’re making food deliveries and are on the road a lot for instance). As you’re on the road more, your risks of an accident increase, and thus insurance premiums increase too.
- You are a young rider. Young riders face an increased risk of an accident due to inexperience on the roads, and hence, the higher premiums.
- You park your motorcycle in a suburb with a high rate of theft. If your bike is at a greater risk of being stolen, your premiums may be higher. Similarly, if your bike is not secured in a garage, or doesn’t have a locking device installed, premiums are slightly higher.
- Your bike is worth a lot. Naturally, the higher the value of your bike, the more it costs to replace, and the higher the premium.
- Your driving/riding history. If you have a history of motorcycle accidents, or penalties for risky riding, it’s likely to impact the cost of insurance premiums.
How can I keep my premiums at a minimum?
There are some reasons why motorcycle insurance premiums will be lower, and some ways you can minimise costs. Here are a few reasons why your premiums might be a little lower.
- If your motorcycle isn’t worth much, naturally your premiums will be lower as it doesn’t cost as much to replace your bike. (On the other hand, a better bike may lessen your risk on the road, so you need to weigh up the risks and benefits on this score.)
- If you store your motorcycle in a secure location, such as a locked garage, your premium may be lower, as there’s less likelihood your bike can be stolen. Swann Insurance also offers a Security Device Discount for those who fit their bike with an electronic immobiliser or locking device.
- If you’ve completed a State accredited rider training course run by an established business, Swann Insurance offers a Rider Training Course Discount. See our PDS for more detail on Rider Training Course Discounts.
- A Multi Motorcycle Discount applies through Swann Insurance if you’re insuring more than one motorcycle on the same policy. See our PDS.
- A Named Rider Discount is available through Swann Insurance for when you have two or more motorcycles under one insurance policy and you restrict the rider of the bike to the person named on the policy. This means the bike is only insured if ridden by the named rider. See the Multi Motorcycle Discount section of our PDS for more information.
Do I need Roadside & Personal Assistance?
There’s nothing worse than your motorbike breaking down in the middle of a downpour! If you want to avoid this situation, Roadside & Personal Assistance is a great idea, and can be incorporated into your Comprehensive insurance cover.
It offers assistance in the event that you become ill or injured, or you receive a fine or infringement, and need help getting your motorcycle home. Roadside & Personal Assistance will ensure your bike is picked up and returned to your home, and the service is available 24 hours a day / 7 days a week with unlimited call outs. Conditions apply. See the PDS for more information.