It is definitely faster and convenient to move around with a bike as compared to a car. Many opt to choose motorcycle as a mode of transportation especially during the peak hours even though it is considered as one of the riskiest ways to travel. Motorcycles are also cost effective for lower income groups unless they have opted for the high end motorcycles. Motorcycle insurance provides financial protection against a motorcycle accident, loss, theft or damage. This policy includes liability coverage when you are responsible for another person’s injuries or property damage.
In Malaysia, as a motorcycle owner it is mandatory to own a motorcycle insurance because no matter how skilled you are, numerous unpredictable incidents could happen on the road which are beyond your control.
Take a look at the graph below:
Malaysia has the highest road fatality risk per 100,000 population among the ASEAN countries and more than 50% of the road accidents fatalities involve motorists. Also, the number of road accidents has been increasing year on year from 2012 to 2018. In the year of 2018 alone, 548,600 accidents have occured in Malaysia. More than half of all road accidents deaths involve motorcyclists. Sounds scary? Hence, it is unwise to think that you do not require motorcycle insurance as it offers protection against any potential unforeseen losses.
Read on to know how you and everyone can benefit from motorcycle insurance!
How does motorcycle insurance work?
In Malaysia, motorcycle insurance companies offer three basic types of motorcycle insurance coverages. Depending on the policy, motorcycle insurance can cover all or part of the cost of repairs or replacement, as well as the cost of damages to a third party’s motorcycle or property. It is always recommended that you choose the motorcycle coverage that suits your needs rather than choosing the cheapest option.
The three basic types of motorcycle insurance coverages consists of:
- Third Party Coverage
- Third Party, Fire and Theft Coverage
- Comprehensive Coverage
Before you pick any of them, here are the comparison on what is covered under the three main coverages:
|Cover||Comprehensive Cover||Third Party, Fire & Theft Cover||Third Party Cover|
|Liabilities to third party for injury, death & property loss/damage||✅||✅||✅|
|Loss/damage to own vehicle due to accidental fire/theft||✅||✅||❌|
|Loss/damage to own vehicle due to accident||✅||❌||❌|
|Liabilities to driver & passengers of own vehicle (property, bodily injury & death)||❌||❌||❌|
Comprehensive motorcycle insurance is known as the most diverse coverage compared to the other coverages. This coverage will cover you for repair or replacement costs if your motorcycle is damaged, stolen or caught in a fire. It includes protecting you when you are responsible for the injury or death of the third party and damage to their property. Add-ons can be added depending on your needs.
Optional add-ons with additional premium are as follows:
- All Riders
- Covers accidents while your motorcycle is being used by any licensed driver who has your consent.
- Strike, Riot and Civil Commotion
- Covers motorcycles against loss or damage caused by strike, riot and civil commotion.
- Inclusion of Special Perils (Flood)
- Covers motorcycles against loss or damage caused by flood, storm tempests amongst other perils.
- Legal Liability to Pillion (LLP)
- Provides cover against legal liability sought by your pillion against you in the event of an accident caused by your negligence.
- If you intend to ride your motorcycle into Singapore, then it is mandatory by Singapore’s law to have cover against Legal Liability to Pillion (LLP).
Third Party, Fire and Theft Cover
Third party, fire and theft cover offers similar coverage as the third party policy but with added coverage for damages from accidental fire and theft of your own motorcycle. Due to this added coverage, third party, fire and theft policy is relatively pricier than the third party policy but more reasonable and affordable as compared to the comprehensive coverage.
- Covers if your motorcycle is stolen.
- Covers if your motorcycle is involved in a fire.
- Covers third party’s injury including passengers and their property.
Third Party Cover
This cover is the most basic motorcycle insurance policy you can apply for. This policy provides a minimum level of coverage in the event of an accident such as injuries, deaths or damages to the motorcycle. This policy provides protection against any claims due to the death of or injury to the third party through the negligence of the rider.
- Most basic level of insurance and legally required.
- Does not provide any coverage to you but only to the third party.
- Any injuries, deaths or damages to your own motorcycle cannot be claimed.
How to Purchase Motorcycle Insurance and Decide On Which Provider to Choose?
Purchasing motorcycle insurance has never been easier with just a few clicks. Rather than the traditional method, you can now purchase motorcycle insurance via the online platform as it is simpler and cheaper compared to what the agent is trying to sell to you.
PolicyStreet offers a motorcycle insurance platform where you can compare and buy directly from there! As Policystreet is a financial advisor approved by the Central Bank of Malaysia, you will be able to find a variety of motorcycle insurance with unbiased choices and the pricing that suits your needs!
In case you are wondering what are the varieties of motorcycle insurance providers we have in our platform, here is a list:
2. Berjaya Sompo
3. Pacific & Orient (P&O)
4. Zurich (Z-Rider)
How Motorcycle Insurance is Priced?
As you know, premium differs from one policyholder to another policyholder. Premium is based on risk characteristics of the rider. The greater the potential risk, the higher the premium and the lower the potential risk, the lower the premium. Thus, you should consider the factors affecting motorcycle premium to understand how your motorcycle insurance is priced.
Riding record: Motorcycle riders that have a safe riding record would be charged with less premiums compared to those who are prone to cause accidents. Your NCD would be affected too.
Claims history: You are able to get a discount on your premium if you have not made any insurance claim against your policy. However, If you have made a claim on your motorcycle insurance in the past then the insurer will classify you as having a high probability of filing future claims. Hence, higher premiums would be charged.
Location: Drivers who are living in areas that have high crime rates and larger populations would be charged with higher premiums compared to those who are living in a low crime rate area.
Type of bike ridden: Latest, expensive and powerful bikes will usually cost more to insure than older, cheaper and less powerful models. Your premiums would be higher if you add performance enhancements to make your bike more powerful and faster.
Who rides your bike?: Your premiums would be lower if you are an experienced rider with good claims history. However, if you want your policy to cover a 18-year old rider with several previous insurance claims and with a speeding conviction, the premiums would definitely be much higher.
How much you ride? If the rider spends less time riding, then the rider would have a lower chance of getting into an accident and therefore, the premiums would be much lower compared to those who spend more time riding.
In short, all of these factors will be taken into consideration by the insurers when charging premiums to a policyholder.
Ways to Lower Motorcycle Insurance Premiums
Every motorcycle on the road requires insurance and it is illegal to ride without insuring your motorcycle. Most of you would be wondering what are the ways to lower your motorcycle costs.
Take a look at the five golden tips to lower your motorcycle insurance premiums.
Compare at least 3 motorcycle insurance quotes
You should compare at least 3 quotes as the prices and features of the policy vary from each insurance company. By comparing the quotes through PolicyStreet, you are able to get the best deal!
Limit your mileage
Riders who spend less time riding would have a lower chance of getting into an accident and the premiums would be much lower.
Do not opt for too much coverage. Stick with what you need!
Getting additional coverage is a good choice but you have to bear in mind that the more coverage you add on to your policy, the higher the premiums that would have to be incurred.
Ride safely and meticulously
Generally, motorcycle insurance is pricey. If you have encountered accidents or any moving violations then you would lose your no-claim discount, and the premiums would spike up. Hence, the best way to lower your premiums is by avoiding accidents and riding more carefully.
Avoid modified and unusual motorcycles
Motorcycles with numerous modifications cause your premiums to be more expensive due to the higher repair/replacement costs and increases the chances of theft.
What should you do in the event of a motorcycle accident?
Have you ever wondered what steps should be carried out when you have encountered a motorcycle accident? Kindly, follow the steps in order to make sure your claim is successful.
- Take note of the accident – If you are involved in a motorcycle accident, kindly take note of the names and addresses of all the drivers and passengers who were involved in this accident, vehicle registration numbers, model of each vehicles involved, drivers’ license numbers and insurance identification as well as the names and addresses of as many witnesses as possible. Be calm, polite and avoid any argument.
- Lodge a police report– By law, you are required to lodge a police report within 24 hours of the occurrence of the motorcycle accident.
- Notify your insurance company– You must inform your insurance company within 7 days of the accident with full and complete details of the motorcycle accident in order to make a claim. Inaccurate details of the accident would not be entertained. If you failed to report regarding the accident, you would be responsible for your own losses as well as third party’s losses.
- Select the workshop– Kindly take note that your damaged motorcycle should be sent to a workshop which is approved by your insurance company. If the accident occurs during working hours, then you may call the hotline or the emergency assistance numbers provided by your respective insurance companies. Alternatively, you may call your respective insurance company for the nearest approved workshop. If the accident occurs outside working hours, you should make sure your motorcycle is brought to a workshop approved by Persatuan Insuran Am Malaysia (PIAM) [also called PIAM Approved Repairers Scheme (PARS)]. If you are making a third party claim, it is recommended that you send your motorcycle to a workshop which is approved by PARS.
Kudos, you have now mastered motorcycle insurance! Purchasing motorcycle insurance provides numerous advantages. It is the power that protects you!
Clear your doubts regarding motorcycle insurance by going through the FAQs.
Ride with peace of mind!