When you purchase a motorcycle, there are many things to consider such as your helmet, safety gear, taxes, and fuel. One important aspect that often gets overlooked is insurance. In this article, we will explore the three main types of insurance available for motorcyclists, and compare the cost of these options against three common entry-level bikes.
First, let's take a look at the different types of insurance:
Third-Party Only: This is the minimum legal level of insurance required to ride a motorcycle on public roads. It only covers the costs of damage to other people's vehicles, persons, or property. Your own motorcycle, property, or personal injury expenses are not covered in any event, even if the accident was not your fault or if the third party is uninsured.
Third-Party, Fire, and Theft: This type of insurance covers the same as Third-Party insurance but also covers your own motorcycle if it is stolen, damaged in an attempted theft, or damaged in a fire.
Fully Comprehensive: This type of insurance covers everything Third-Party, Fire, and Theft does, plus any costs to your own motorcycle or property, or personal injury expenses in the event of an accident that is your fault. It also covers you for accidents that were no one's fault, where fault cannot be proven, or if the third party is uninsured. Fully comprehensive policies may also include extras such as breakdown cover, courtesy vehicle cover, and vandalism cover.
To give you an idea of the cost, let's imagine Bob, a 16-year-old student living in central Milton Keynes. He is looking to buy and insure one of these three bikes:
Yamasaki YM50/RE 50cc Purchase cost £1799 + £100 OTR
Yamasaki F50 50cc Purchase cost £1299 + £100 OTR
Lexmoto Echo+ Purchase price £1199.99 + £100 OTR
All these motorcycles have a similar power output and top speed, but with a wide variation of prices and theft desirability, the insurance cost can differ considerably.
Here's an example of insurance costs for each of the bikes:
Yamasaki YM50/RE: Fully comprehensive - £531.10, Third-party, fire, and theft - £319.67, Third-Party Only - £270.49
Yamasaki F50: Fully comprehensive - £420.85, Third-party, fire, and theft - £235.67, Third-Party Only - £235.49
Lexmoto echo+: Fully comprehensive - £428.85, Third-party, fire, and theft - £319.67, Third-Party Only - £235.49
In this scenario, it's recommended to go for Third-Party, Fire, and Theft. This is because of the high excess amounts on fully comprehensive policies. As a 16-year-old, you would likely be paying the first £250 to £1000 before the insurance company pays anything. Typically, any problem on these bikes (except for a bent frame) will come under that price, so it does not make sense to go for a fully comprehensive policy.
It's worth noting that insurance costs can vary depending on the provider. It's always good to shop around and compare prices from different companies. Make sure to consider not just the price, but also the level of coverage and customer service offered by each company.
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