Bike Insurance

By Catherine W

There are ways to decrease high insurance premiums and know how to get the best deal. Below is advice on how to get cheaper insurance premiums:

1) Save money - Buying insurance once a year is a grueling task, and once is enough, so bear in mind that insurers rely on compliance, but by changing insurance mid-term you can save a lot of money. If you have not made a claim most insurance policies allow a full pro-rata refund, therefore, you are free to switch to a cheaper rate at anytime.

2) Always shop around - Visit a price comparison site. A premium comparison site will do the leg work for you and compare all of the insurance companies.

3) Risk premium - The insurance world jargon consists of 'risk premium' which is the amount of money you are charged for you insurance. The price they quote is based solely on risk that they think you will present. Therefore, lower your risk and get a cheaper insurance premium. There are easy steps to keep the cost down. Firstly, you could keep your motorcycle off the street, and keep it in a garage overnight. Or secondly, fit your bike with an immobiliser, this will lower the security cost, lastly do not over assume mileage. Most commonly, insurers will give you a discount, if you do not take anyone else on your bike.

4) Stay with a bike for as long as you can - Do not change upgrade your bike straight away, as this will dramatically increase the cost of insurance. Instead progress steadily up though bike cc's and you will not get hit with a big price. Some insurers now give discounts if you actually downsize your bike.

5) Keep your bike safe - Bikes are twice as likely to be stolen as cars, therefore insurance companies are very strict as to where you will store your bike. If you keep your bike in a garage, you could receive a discount of up to 40%. If you tell the insurer the postcode of the lock up you can still get a discount.

6) Multiple bikes - If you have more than one bike, it may benefit you to ring a specialist that offers multi-bike policies. This way, you could get a discount for bulk buying bike insurance.

7) Different types of insurance - There are different types of bike insurance, fully comprehensive, third party fire and theft and third part only. Many motorcyclists's choose 'third party fire and theft' and 'third party only' as these are the cheaper options. However, it is important to consider paying extra for getting repairs completed or getting your bike replaced in the event of an accident is worth extra premium. 'Third party only', is the minimum legal requirement that is needed.

8) Pay annually if possible - You usually have the option to pay for your insurance in one lump sum or monthly. Remember to check how much interest you will pay if you choose the monthly option. The APR on monthly packages can be high.

9) High quotes - If you have multiple accident or convictions, then this can increase your premiums. You can depend on the fact that insurance prices will always change and companies will always be competitive.

Catherine has several articles pertaining to Bike Insurance and other finance related articles.