Frustrated at having to pay high insurance premiums, or want a better bike but can't afford the quoted premiums? These are common problems faced when looking to insure a new bike, and it can be difficult to know what can and can't help you get a better deal. To help, we've got a top-ten list of ways of getting a cheaper insurance premium:
1) Save money even if it’s not your renewal
For most of us even buying insurance once a year is one time too many, but bear in mind most insurers rely on this passivity and by changing insurance mid - term you can save a lot of money. If you haven’t made a claim most insurance policies allow a full pro - rata refund, so you’re free to switch to a cheaper rate at anytime.
2) Use a premium comparison service
Let’s for a moment think of insurance as any other commodity, let’s say its milk. If you wanted to buy a pint of milk you might think that it would be cheapest to buy it straight from a farmer. The farmer here represents the ‘direct insurance’ company as you are speaking direct to the supplier. Most of us canny consumers however know that the supermarkets bulk buy from a multitude of farmers. Once rebranded our pint of milk can be cheaper due to the savings in mass distribution. The supermarkets are like the national brokers as they offer you the option of choice and the concept of sourcing and a supply of milk to you the consumer. Of course you may buy your milk from your local shop since you like them, in the insurance world the role of the local shop is played by your local friendly broker.
Before you think I have some weird milk fixation the point here is, a premium comparison service will compare the price of a pint of milk from each farmer, all the supermarket brands and each local shop.
3) Risky business
The insurance company’s word for the amount of money you are charged for your insurance is ‘Risk Premium’. The price they quote based entirely on the risk that they perceive you present. So lower your risk and you get a cheaper insurance premium. There are some simple ways to keep the cost down: fit an immobiliser if you don’t have one already; don't over-assume annual mileage; keep your motorcycle off the street and in a drive or garage overnight. Virtually all insurance companies will give you a discount if you don’t take anyone else out on your bike riding pillion.
4) Get experienced
It doesn’t take a rocket scientist to realise if you move from a 125 aprillia to a R6 then your going to present more risk to an insurance company. Once you’re used to the R6 and have been riding for a few years it’s a different story but if you jump bike sizes you’re going to get charged a lot. Progress steadily up through bike cc’s and you won’t get the full price hikes. Some insurers now give discounts if you are downsizing your bike or you’re used to riding similar bikes.
5) Don’t get your bike nicked!
Bikes get stolen, we all know this and so do the insurers. Bikes are twice as likely to be stolen as cars and so the insurance companies are really hot on where you keep your bike and how you keep it safe. Discounts for keeping your bike in a brick garage can be as much 40% and it doesn’t have to be a garage at your home. Find somewhere safe to keep it, tell your insurer the postcode of the lock up and you still get the discount. Otherwise get it of street, into private property, and keep it only where you can legitimately secure it.
6) More than one bike
If you have more than one bike phone a specialist offering multi-bike policies. You get discounts for bulk buying bike insurance that are actually worthwhile.
7) Fully Comprehensive, Third Party Fire and Theft and Third party only
You can chose between these three types of insurance for your bike, these are the same types of cover that are available on your car insurance however a lot more motorcyclists take the lesser ‘third party fire and theft’ and ‘third party only’ cover on motorcycles. Why, well of course they cost less but you also have to think whether paying extra for getting repairs completed or your bike or getting your bike replaced in the event of an accident is worth the extra premium. The average value of a bike is much lower than the average value of a car. Third party only is the minimum legal requirement and if the value of your bike to you is not high in monetary terms you can save money by selecting this lesser cover option.
8) Riding for pleasure
We mentioned earlier that the premium charged for your insurance reflects the risk that you present to the insurance company. If your bike is not your main mode of transport you present less risk. Some companies will give you a discount if you also own a car. If you’ve got an exemplary driving record and even a few years car no claims bonus, you can get a cheaper premium. Use our premium comparison service to find a broker who will take this into account.
9) Pay annually where you can
You usually have an option to pay for your insurance in one lump sum or monthly. Make sure you check how much interest you will pay if you opt for monthly. Think of it as a mini loan because the APR on monthly payment schemes can be high.
10) High quotes
Blatantly obvious, wait for it…. multiple riding convictions and accidents can make your premiums rocket. If you do have a high insurance premium even with a clean riding record checking around becomes even more important. The prices between insurance companies differ wildly. Why? Well some insurance companies won’t want you at all and will hike their price to make it prohibitive. Other insurers will have noted from their records that people like you are their dream customer and will offer you discounts to welcome you aboard. The difference in prices often won’t make sense to you but it’s really the different insurance companies fighting for business. You can be sure prices will always change and insurance companies will always battle for your business.
Related Links
» www.bikingneeds.com
This article accompanies our new insurance aggregator service where you can get the best quote for your bike straight away.
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