Owning a motorcycle has become a necessity rather than a luxury in metropolitan countries like Malaysia. As a motorcycle rider, you should think about your life, your bike, and the lives of others and be cautious every time you are on the road.
Riding on a motorbike has a high risk thus it’s important to get motorcycle insurance and adding on to the fact that it is mandatory for all licensed riders to have motorcycle insurance. But before buying a motorcycle insurance, you should consider the various factors affecting the price of your policy.
What factors affect the cost of my motorcycle insurance?
1) Your Age
How does your age affect the cost of your motorcycle insurance?
Your age is the biggest factor taken into consideration to determine your individual motorcycle insurance rate. If you fall within the age group of 16 – 25, you can expect to pay higher premiums than the average riders.
This factor may seem unfair, but the reason for this is the driving risk. Based on the fatality graph below, young riders are prone to more accidents than older riders. Which clearly explains the more experienced rider you are, the less risk you will be exposed to, thus leser insurance cost.
2) Your Driving Record
Just like car insurance, your driving record is also taken into account under the factors that affect the cost of your insurance. Studies state that 68% of road injuries and 50% of road accidents involve motorcyclists. Insurers usually look back at around 3 – 5 years of driving records. Your insurance premium will increase if you have a high record of at-fault-accidents and traffic violations. This is because, when you are at fault for an accident, you are legally liable to pay the cost for the injuries and damages. Here is where your motorcycle insurance helps to take responsibility for some cost.
Listed here are the main types of cover claimable under your motorcycle insurance.
- Incidents such as collision or overturning due to mechanical breakdown, theft, fire explosion, while in transit etc.
- At fault accidents, where you are responsible for the cost of damages of yours and third party injury.
- Legal cost due to reckless riding and traffic violations.
The good news is, if you don’t make claims under your motorcycle policy for one year, your insurance company will offer you a No Claim Discount reward, which will increase if you don’t claim for the consequent years!
3) Your Location & Security
Yes, your location and security is also an important factor!
Usually if you live in cities or a frequent traveller to cities, your insurance will cost higher. Driving in cities exposes you to higher risks of accidents compared to rural areas.
Insurance companies would also charge you a higher premium if you live or travel to high crime areas. These areas would jeopardize the security of your motorcycle. As a matter of fact an average of 86 motorcycles get stolen everyday in Malaysia. The theft rate of motorcycles is higher than of cars. Thus it is very important to get a motorcycle policy insured for your motorcycle.
4) Your Vehicle Type
Your vehicle type affecting your insurance price is classified by:
- Vehicle Age
- Vehicle Model
- Engine Capacity
Expensive motorcycles are expensive to insure because their parts are costly and mostly needed to be imported from overseas. In some cases, how common the motorcycle is would affect the price too. For example, Honda X-ADV is common on roads and its parts are widely available, while a Royal Enfield Continental is not as common, the parts may be harder to find and could be more expensive to source.
Apart from this, a high performance vehicle has higher premiums and may be more expensive as well. If you’ve modified your motorcycle, this may impact the price of your motorcycle insurance premium.
5) Coverage Selection
The type of coverage does affect your insurance price because different coverage facilitates differently.
Third Party : This is the cheapest and simplest policy available which is also the minimum that the law requires as it covers death, injury, loss or damage done by you towards a third party. “Third-Party Only” does not cover you or your motorcycle in an accident.
Third Party, Fire and Theft : In a “Third-Party, Fire & Theft” motorcycle insurance policy, you get everything covered in “Third-Party Only”, plus coverage for your motorcycle in case of loss or damage caused by fire or theft. This costs slightly higher than the former.
Comprehensive : This coverage offers protection against financial losses because it covers fire, explosion, lightning, burglary, housebreaking or theft and accidental damage to the Insured’s vehicle in addition to the protection against the legal liabilities to third parties for death and bodily injuries, and damage to property that may arise through the negligence of the rider. Since it covers all sectors, it’s the most expensive amongst the three and the most safest for you and your vehicle.
6) Online/Offline Insurance Policy
Purchasing motorcycle insurance offline, requires you to pay the commision of the insurance agent. While buying online there are no intermediaries, you get to immediately communicate and get your quote! You save time and you can eliminate complex paperwork by just uploading a few documents online. With all these facilities, many insurers regularly offer additional discounts to help customers save more money. ( Add PS offer for road tax renewal for bike). Therefore buying motorcycle insurance online or offline also determines the cost of your insurance.
7) Vehicle Usage
Depending on how often you use your motorcycle, you might pay more for your coverage.For example,if you ride everyday to work, you will face more risk than drivers who only use their motorcycles for a few months around the year. In order to cover you, your premiums might be higher.
Using your motorcycle for business purposes requires you to get a business policy since personal motorcycle policy will not cover you for commercial use.
TIPS to reduce my bike insurance premium!
- Your insurance premium can decrease if you avoid the insurance for pillion riders if it is not necessary.
- As mentioned earlier, picking up a small bike that fulfills your needs, or buying a good model from cheaper brands reduces your premiums.
- If you have not made any claims in your insurance policy you will be offered a No Claims Discount. Ensure you maintain a good track record when it comes to your driving habits.
- Some insurance companies offer discounts if you purchase their other products such as home or medical insurance.
- Renew your bike insurance before the due date to avoid higher premiums.
- Choose suitable add- on covers, as redundant add-ons will only increase the bike insurance rate.
Most importantly, compare the available motorcycle insurance policies in the market. The best way to do that is to compare online. This helps you weigh the pros and cons and then buy the policy that suits your need the best. You can easily compare and get your instant quotes with PolicyStreet!
PolicyStreet offers a motorcycle insurance platform where you can compare and buy directly from renowned insurers!
PolicyStreet aims to democratize insurance by making insurance Simple, Easy and Affordable. We break down complex insurance policies and provide consumers their rights to be adequately insured with deserving financial wellness at all stages of life. As Policystreet is a financial advisor approved by the Bank of Malaysia, you will be able to find a wide array of motorcycle insurance with unbiased choices and pricing that suits your needs!
Here are the steps on how you can compare and purchase your motorcycle insurance via PolicyStreet
1) Key in your motorcycle details and get instant quotes.
2) Compare and choose the best quote you prefer.
3) Fill up your details with add-on if any and make your payment.
“AS SIMPLE AS THAT!”
We want to make sure you always get the best deal out of your motorcycle insurance. Plus, it is free to use our comparison platform and simple enough to get your insurance within 3 steps.