THE BRIEF
Cheap insurance sounds like a good idea, but what happens if you claim?
There is a superficial attraction about buying the very cheapest comprehensive insurance you can get away with. Price comparison websites want to encourage the cheapest premium but as your risk is what your risk is, you live where you live, your claims record is fixed and your bike is your bike how can there be such variation between premiums? As with everything in life, you get what you pay for, but only to a degree with insurance. How then do you filter out the good? If you go onto a price comparison website do not go on price alone. You will naturally filter out the very expensive premiums. Good, they do not want your business. Your risk profile does not represent their target market. So then you look at the cheapest. I would exclude all non-uk underwriters. Even before Brexit, if one went ‘bang’ and insurers do go ‘bang’ enforceability would have been very tough. Post-brexit it will be even tougher. Check carefully the terms where the reduction and risk most affects the likelihood of insurers paying out. Your first check is theft cover. This is high risk so this is a good place for an insurer to add onerous conditions. Probably the most extreme one I have seen, and I paraphrase says ‘unless your bike is locked in a brick built garage with a high security lock, ground anchor and deadlock and chain, (from a very limited range of
‘If you go onto a price comparison website do not go on price alone’
very expensive chains and locks) and has a category one armed alarm then as between 7pm and 7am if your motorcycle is within one mile of your home address and it is stolen, outside of these conditions there will be no payment’ so read the theft exclusions, is the theft cover realistic for you? Secondly, repairs. If your brand new bike has to be repaired by an insurance approved ‘supplier’ then your manufacture warranty is voided. There is an urban myth that motorcycle manufacturers cannot invalidate your warranty by the use of non-franchised garages, but this is an arrangement, rather than a legal right, which only applies to motorcars. A common question you will be asked is ‘do you carry a pillion?’ – again it makes a difference to the risk the insurer is taking on. Answer truthfully. Things can go horribly pearshaped if you are partially or fully to blame for a collision and your pillion sues you. Your insurers will pay the pillion’s claim but if you are worth suing they will come after you for reimbursement of the payout. Finally, when asked if your bike is standard, be alert to the question. As a minimum, if you say the bike is standard any accessories or upgrades will not form part of the fully comprehensive risk your insurers have taken premium for. If the parts are performance enhancing and you deny having them fitted it can scupper any claim.