The Types and Coverage of Motorcycle Insurance

If you own a motorcycle, securing a good insurance for you and your bike shouldn’t be taken for granted. And take note, these are only a few of the many insurances that you can choose from. But let’s start with the basics: there is third party insurance, classic and old vehicle insurance, and the comprehensive motorcycle insurance.

Third Party Insurance (property insurance) – This type of motorcycle insurance only covers the person or persons you have caused damage and their property or vehicle. It does not cover your insurance as well as your motorcycle.

If you are ACT registered, it is mandatory to provide third party insurance for people and property that you might damage while driving your bike.

Classic Insurance– Avail this type of insurance if you have a motorbike that is not less than a decade old. This is ideal for bike owners who only use their motorcycle occasionally like a hobby or club.

Comprehensive Insurance– A comprehensive insurance offers overall coverage for you. That includes covering the damage you might cause to other people’s property or vehicle, and covering your bike insurance as well. You can also avail any of these insurance if you own a scooter.

Most of the time riders tend to have the comprehensive type of insurance. You can choose any amount of coverage you like. It all depends on your preferences and the money you can shell out for your protection.

Comprehensive insurance coverage

Most probably, the company where you got registered will pay the cost in relation to the accident. This includes but is not limited to; repairing properties and your own bike, offering you a payout based on the market value and the price you have agreed on for your motorcycle. It offers protective policy for other costs, it will also cover the expenses of replacing or repairing locks.

The liability that the comprehensive motorcycle insurance package offers will include a wide coverage for both you and the people involved in the accident. Included are the following:

  • Cost of damages and payouts
  • Legal costs
  • Cost to your employer
  • Wage lost
  • Medical cost

Not only accidents, comprehensive plan cover other forms of property damage such as thefts, limited replacement of parts when it needs one, towing and even natural disasters.

The only drawback is that, most insurance companies will not honor your insurance if the accident or the damage happened outside of the country. They will not cover for mechanical failure as well.