If you are a first-timer, it is possible for you to be unfamiliar with motorcycle insurance and other related matters. Such concerns may include – “What type of motor insurance should you get?” “Where can you purchase motor insurance?” “What type of coverage should you look for?”
Hold on, let us help sort out your confusion! In this article, we answer some of the most frequently asked questions about motorcycle insurance.
What is motorcycle insurance?
Motorcycle insurance is a form of coverage for your motorcycle in case of any untoward incidents. It helps protect you from financial liability on multiple fronts if you are ever in an accident.
Meanwhile, some might include covering the damage caused by theft or fire. However, it depends on the policy type.
What types of motorcycle insurance are available?
Notably, there are three primary motorcycle insurances.
- Third-party policy – offer the minimum coverage that covers death, injury, loss, or damage to the third party
- Third-party fire and theft policy – provide coverage against third-party risks and loss or damage caused by theft and fire in the accident where you at the at-fault party
- Comprehensive policy – cover any financial loss for the policyholder (you) and the third party
What are the factors affecting the cost of my motorcycle insurance?
The insurance premiums will fluctuate due to varying factors. These factors include the type of motorcycles, driving record, age, location, gender, etc.
How much should I insure my motorcycle?
You should insure your motorcycle according to its current market value. The insurer could penalise you if your motorcycle is insured lower than the market value.
Example: If the market value of your motorcycle is RM10,000, but you only insured it for RM8,000. You are liable for a penalty for under-insurance.
Can I claim my stolen motorcycle to insurer?
Fortunately, you can file a claim to your insurer in the event of motorcycle theft.
However, you must ensure that you purchase comprehensive insurance or third-party, fire and theft insurance.
Is it mandatory to purchase motorcycle insurance?
According to the Road Transport Act 1987, all motorcyclists must purchase liability insurance for their motorcycles. They are subject to annual renewal to help cover damages if they are found at fault.
The fine for riding a motorcycle without insurance is up to RM2000 or three months’ jail time or both under Section 90 of the Road Transport Act.
Can ‘just anyone’ else ride my motorcycle?
Yes, anyone is allowed your motorcycle given that you purchase additional All Driver coverage or name them as an authorised rider in Named Driver coverage.
Please note that you should only allow authorised riders to ride your motorcycle. Authorised riders are those covered by your insurance should anything happen, depending on your policy plan.
Can I claim if my motorcycle participates in an accident while racing?
To your knowledge, insurance company will not provide coverage if you ride your motorcycle to the following events:
- Practise or participate in any motorsports event, competition, treasure hunt, rally, race pacemaker, reliability test or speed test
- Ride at any racing circuit
However, you can extend your policy plan with additional cover for riding in competitions to enjoy the coverage if anything happens to you in the situations in question.
What additional coverage can I include in my motorcycle insurance?
You may purchase several additional coverages to ensure your motorcycle receives adequate protection. The following of examples include:
- Special perils (natural disasters) – cover damage or loss to the motorcycle due to natural disasters such as floods and landslides
- Riots and civil commotions – cover motorcycle damage due to riots, strikes, or civil commotions
- Additional accessories – protect your additional accessories against thefts or damages. You can make an insurance claim in the event of damaged or stolen accessories
- Legal liability – cover the policyholder against liability of the passenger in the event of an accident
- Personal accident – provide compensation in the event of injuries, disability, or death caused by an accident
What is the difference between motorcycle insurance and personal accident insurance?
Motorcycle insurance protects your motorcycle in case something happens to it. It helps to cover any damages/accidents during the policy period. Other than that, the coverage is also extended to the third-party liability.
Meanwhile, personal accident coverage provides monetary compensation in case of:
- Disability, or
- Death caused solely by violent, accidental, external, and visible events
What is the cheapest motorcycle insurance that I can purchase?
You can opt to purchase the third-party policy. This coverage provides financial protection for third parties that are involved in accidents that are caused by your neglect.
Where can I purchase motorcycle insurance?
In brief, we advise you to survey several motorcycle insurance on the internet first. Doing comparisons across insurers can allow you to get the best policies at an affordable price.
For your convenience, you can refer to websites that allow you to compare different insurers in one go. For instance, you may use Bjak – Malaysia’s leading insurance-comparison website to ease your findings!
To get started, visit Bjak.my to get free car insurance quotes online today!