5 things to consider when buying motorcycle insurance
23/01/2019
No matter whether you are a new driver with a probationary driving license or you have been riding a motorbike for over 30 years, purchasing a new motorcycle insurance policy is no easy feat. You will have to spend time on researching and comparing prices of different policies, or else you may have to pay some serious money out of pocket when there’s an accident. Our previous features have touched on what every rider should know about motorcycle insurance and safety tips for riding a motorcycle in Hong Kong. Today, Kwiksure will bring you five more tips on what you should consider when selecting motorcycle insurance to help you make a more educated purchase decision.
1. What type of motorcycle insurance you should purchase
Just like private car insurance, motorbike insurance also comes in three primary forms, namely third-party insurance, third party fire and theft insurance, and comprehensive insurance.
Third-party only motorcycle insurance (TPO) ensures that you are insured against liability for property damage or bodily injury to third parties in the event of an accident, but does not cover the driver or their motorcycle. It is important to note that some motorbike insurance plans will have a lower coverage limit than car insurance plans.
Third party fire and theft insurance (TPFT) covers loss or damage to your own vehicle if it resulted from fire or theft, in addition to the third-party only policy. Some policies may allow you to claim for towing costs incurred because of an accident as well. However, it is important to note that theft claims are only admissible if the whole machine is stolen, and loss of accessories is not covered.
Comprehensive motorcycle insurance (COMP) provides more extensive coverage than a third party or a third party fire and theft policy. With comprehensive insurance, on top of being covered for damages to third parties, motorcyclists will also be covered for injuries or death to third-parties and claims for loss or damage to their own vehicle in the event of an accident.
Some insurance policies also allow you to add optional benefits such as compensation for loss of use, personal accident and medical expenses. None of the policies mentioned above will cover medical fees of the driver, so drivers should purchase their own accident or health insurance policies. Finally, check thoroughly the terms and conditions when you are securing accident insurance since some policies may exclude driving or even riding on a motorbike due to its high risks.
Below you can find a summary of all three types of motor insurance available in Hong Kong:
|
Type |
Third party liabilities |
Damage or loss caused by theft of fire to your car |
Damage to your car |
|
Third Party Only |
YES |
NO |
NO |
|
Third Party, Fire and theft |
YES |
YES |
NO |
|
Comprehensive |
YES |
YES |
YES |
2. No Claim Discount (NCD) for motorcycle insurance
No claim discount comes as a very crucial premiums benefit for drivers since a 30% annual discount can save them a great deal of money. For those who are not familiar with the subject, NCD is a premium discount awarded to a policyholder for every consecutive year without any claims. However, it is important to point out that an NCD for car insurance cannot be transferred to a motorcycle insurance policy. Also, same as commercial vehicles, the maximum NCD for motorbikes is 30% only, while the NCD for private cars caps at 60%.
|
Year(s) of No Claim |
No Claim Discount (motorcycle / commercial vehicle) |
No Claim Discount (private cars) |
|
1 year |
10% |
20% |
|
2 consecutive years |
20% |
30% |
|
3 consecutive years |
30% |
40% |
|
4 consecutive years |
30% |
50% |
|
5 consecutive years |
30% |
60% |
3.Usage of your motorbike
There are mainly three types of usage for a motorbike, listed as below:
Private use: You only intend to use your motorcycle in your private life and for leisure.
Private use and commuting to work: You plan to use your motorcycle for private and leisure activities, and also to get to and from your workplace.
Private and business use: You use your motorcycle for private and leisure activities, and also in the course of your work.
While all insurers will require you to declare your usage, some insurers will also ask you to contact them before you can use your motorcycle outside of your declared usage. They may also incur an additional excess or even reduce/reject your claim should you forget to inform them beforehand or incorrectly declare on purpose. Finally, while most business use such as delivering pizza will be accepted as long as it is declared to the insurer in the first place, hire or reward is usually excluded in most motor insurance policies.
4. Modified motorcycles
Those who are looking for some serious street cred may find it hard to resist the temptation of having some unique quirks applied to your motorcycles. However, it is worth pointing that illegal modifications do not only increase your bike’s risk of being stolen, but insurers will also reject your claims altogether. However, when these modifications comply with the guidelines outlined by the Transport Department your policy won’t be affected.
5. Look around for good motorcycle quotes
It’s always important to see what different insurance companies have to offer. And even if some insurers seem to offer lower premiums, it is also imperative to double check on the scopes of coverage in different policies. Thus, it is worthwhile to engage the service of a professional insurance intermediary to compare the services and plans of various insurance plans to find the one that best matches your needs.
Kwiksure works with over 60 insurers in Hong Kong and is an established motor insurance specialists, we are able to help you find the best motorbike insurance, third-party car insurance, and comprehensive car insurance plans out there. For more information, please do not hesitate to contact our team of experts at any time, or visit our website for a no-obligation, free quote today!
