The Road Traffic Act (1988) made motorcycle insurance mandatory for riders in the UK. This motorcycle insurance requirement includes: bikes, cycles, mopeds, and scooters. There are three primary types of motorcycle insurance. These include:
* Comprehensive Coverage
* Third Party Fire and Theft
* Third Party Coverage Only
Comprehensive motorcycle insurance, as the name implies, offers the highest level of protection for riders. This type of motorcycle insurance covers damage to or loss of the policyholder's motorcycle, whether the damage is by accident or done intentionally. In addition, comprehensive coverage also includes the coverage that would be received in a third party fire and theft policy.
A third party fire and theft policy meets all the basic requirements of the Road Traffic Act. In addition to this mandated minimum requirement, the fire and theft component of the policy insures the policyholder's motorcycle should it be damaged due to fire or if it ever gets stolen. However, unlike a comprehensive policy, a third party fire and theft policy does NOT cover damage to the motorcycle for any other reason, whether accidental or intentional.
Lastly, third party coverage is the mandatory minimum of the Road Traffic Act. With this very basic policy, the policyholder is insured against liability in instances where they have caused death or bodily injury to a third party, including rider and pillion riders. In addition, damage to third party property is also covered under this policy.
In the event of a claim, the policyholder must pay some portion of the claim, if they are partially responsible for the damage that has occurred. There are two types of excess that the policyholder will pay in these instances: compulsory excess and voluntary excess.
Your compulsory excess is determined by the insurance company. The amount varies in accordance with the terms of the policy. Policyholders are responsible for this excess in both fire and theft claims.
Voluntary excess is an amount determined by both the insurance company and the policyholder. This amount is set as a way to reduce the price of premiums. When a claim is filed, the policyholder must pay the agreed upon voluntary excess in addition to the compulsory excess.
Motorcycle insurance policies are typically annually and policyholders may incur a penalty should they terminate service early, due to the seasonality of riding in the UK. However, keeping a comprehensive or third party with fire and theft policy in effect, even when the weather is inclement, offers protection for the motorcycle when its not being ridden. There are also custom policies available for certain classifications of riders. These include policies specifically tailored to: young riders, female riders, seasonal riders, police or emergency service personnel, and those in the prison service.
