The basics to bike insurance

Documentation or paperwork

When you purchase your motorbike insurance, your insurance company will send you documentation to prove you are legally insured to ride on the road. You'll have to show proof of insurance for example if you get stopped by the police for any reason. The law currently gives you seven days to prove your valid insurance cover to the police.

You should receive the following documents from your insurance company:

Cover note
A cover note is a temporary certificate of insurance which is usually issued to allow either a broker or insurer time to complete their paperwork before they issue the full certificate. It usually lasts for 30 days.

Certificate of insurance
This is the document that proves your legal motor insurance cover as required by the Road Traffic Act.

Schedule and/or policy document
The schedule and/or policy document sets out the full terms and conditions of your insurance policy.

Remember! You should always read all the documents sent to you, firstly to check that the level of cover you agreed with the insurance company is correct and to also make you aware of any policy exclusions. It is your responsibility to be aware of the exact cover you have agreed. If you have any concerns or queries, contact your broker or insurance company.

Types of policy available

You can choose from three main types of policy for your bike, and each offer a different level of cover.

Third Party Only (TPO)

The minimum level cover required by law in the UK, TPO cover includes:

liability for damage or injury to a third party
damage to property

It does not include damage to your motorbike or personal injury, or if your bike is stolen or set on fire.

Third Party Fire and Theft (TPFT)

This protects you against claims made against you as a result of an accident, as well as:

fire
your bike being stolen
any damage caused to your bike during a theft or attempted theft

It doesn't include damage to your motorbike or personal injury.

Comprehensive

Comprehensive cover generally allows you to claim for any damage to your motorbike (except for anything outlined in your policy exclusions), and:

accidental damage to your motorbike
vandalism
medical expenses

You may also be able to get a free temporary replacement motorbike if yours needs to be fixed after an accident; check your policy documents to see if your policy includes this.

Policy exclusions

All policies have exclusions. They tell you what type of activities your insurance will not cover you to do. These exclusions vary from one insurance company to another, but a common example is you will not be covered by your insurance if you race your motorbike.

If you get caught racing without the proper insurance cover, you will be fined and receive points on your licence. This will mean your insurance premium will increase substantially when your policy is due for renewal. You will have to foot the bill for any damage caused as your insurance company will not pay out on any claim.

So before buying an insurance policy, please check the terms & conditions for any exclusions that apply to the policy.

Riding other motorbikes

Riding other motorbikes cover allows you to ride another motorbike with the owner's permission in an emergency situation. Some comprehensive policies give this cover, you need to check your policy documents to see if it is included in your motorbike insurance policy.

Excesses

An excess is your contribution towards any claim. You need to pay the excess to the garage who repaired your bike when you pick it up.

Let's say you have a claim for accidental damage, and your accidental damage excess is £100. If the cost of the claim is £500 you will pay the first £100 of the claim leaving your insurance company to pay the remaining £400. Sometimes it isn't worth making a claim on your insurance. For example if you have a £100 excess and your claim is worth less than £100 then there is little point approaching your insurer as your excess is more than the total damage cost.

The main excess types are:

Compulsory excess
This is the excess your insurance company decides you must pay if you make a claim on your policy. Policies with young drivers or higher value motorbikes tend to have higher compulsory excesses.

Voluntary excess
When you take out an insurance policy, you can choose to pay more towards the cost of a claim. In doing so you can reduce the price of your premium, but you will have to pay more excess in the event of a claim.

When you take out an insurance policy, you can choose to pay more towards the cost of a claim. In doing so you can reduce the price of your premium, but you will have to pay more excess in the event of a claim.

You have to pay both the compulsory and voluntary excesses, for example if your compulsory excess is £200 and you choose a voluntary excess of £150, you will have to pay £350 in total.

All in all, you need to weigh up the final cost to you. Pay a higher excess and get a cheaper premium, but risk paying more if you need to claim; or pay a lower excess with a higher premium and have less to pay if you make a claim.

No claims discount

For every year you're insured and don't make an insurance claim you will build up a no claims discount. The amount of discount you receive can vary but could be from around 30% discount the first year, increasing to around 60% for your fourth year.

If you make a claim on your policy and your insurance company can't recover their costs, it will affect your no claims discount even if the accident was not your fault. It is a 'no claim' not a 'no blame' discount.

Should you have a claim which is considered to be your fault then you will lose some of your no claims discount. The amount of discount you lose will vary from one insurance company to the next.