Is Comprehensive Motorcycle Insurance Worth It?
Why Should You Get a Comprehensive Motorcycle Insurance?
As a motorcycle lover, the wind against your face, the open roads, you know the sense of thrill and freedom riding gives you. But have you considered the potential risks from theft and fire to natural disasters, the road. That’s why comprehensive motorcycle insurance is a must for anyone wanting to protect their investment from the many hazards on top of providing coverage for third-party claims but also covers your own losses, whether you’re at fault or caught in an unexpected mishap.
Especially if you have a high-value bike, are new to riding or have a leased motorcycle, this coverage can be a lifeline. In this article, we’ll break down the key benefits of comprehensive insurance, who benefits from this type of policy and helping you to make an informed decision to protect your ride.
Firstly, let’s briefly discuss the different types of motorcycle insurance plans offered by the insurance providers.
Third Party Policy
If you are riding a motorbike in Singapore, you mst have at least basic insurance for your bike, covering liability. This is called Third-Party policy Only (TPO) Insurance which is the minimum required by law. TPO protects the third party for death, injuries, and property damage caused by your bike.
TPO covers:
- Covers injury or damage you cause to others
- Mandatory minimum coverage required by LTA
- Does not cover damage to your own motorcycle
What your third party only motorcycle insurance won’t cover is any damage on your bike due to accidents or ‘carelessness’.
Third-Party Fire and Theft
A popular choice bike owners go for is the Third Party Fire and Theft (TPFT) insurance policy, a tier above the basic coverage. This covers everything included in your Third-Party Only Insurance policy, as well as your bike’s market value in case it is stolen or damaged by a fire.
TPFT covers:
- includes TPO coverage plus protection against fire and theft of your motorcycle
- coverage for when your motorcycle gets stolen
- popular mid-level option for moderate protection
- still excludes accidental damage to your own motorcycle
Premiums are higher compared with the Third-Party policy Only cover.
Comprehensive Bike Insurance Policy
There is the fully comprehensive motorcycle insurance policy, it’s described as the policy that gives bike owners total peace of mind when it comes to bike security.
The comprehensive insurance policy covers on both the TPO and TPFT policies, plus any other damage on your owned motorcycle.
Comprehensive insurance policy typically covers the following and more:
- Third-party injuries and/or death in an accident
- Third-party property damages
- Legal expenses arising from accident
- Damages to your motorcycle arising from an accident, caused by fire or theft - inclusive of fire damage from internal or external sources i.e., building fire, etc.
- Non-crash damage sustained on your motorcycle or motorbike
- Damages from floods or natural disasters
- Damage from fallen trees or branches
It essentially includes both the TPO and TPFT policies, plus any other damage on your owned motorcycle.
Since it's the policy that offers a full coverage, most banks and credit corporations recommend this type of policy if you are borrowing to finance a motorcycle purchase.
Why Comprehensive Coverage is Different
Unlike basic insurance that only protects others from your actions, comprehensive motorcycle insurance protects your financial investment in your bike. Whether you're involved in an accident, your bike is stolen, or it's damaged by weather, comprehensive coverage ensure you're not left facing expensive repair or replacement costs.
What Risk Does Comprehensive Motorcycle Insurance Cover?
While comprehensive motorcycle insurance isn't required by law, it's a smart way to protect yourself from a wide range of potential mishaps - like theft, accidents, fire or natural disasters. In short, it's your all-around safety net. If your motorcycle is financed or leased, your lender will likely require this coverage.
A comprehensive motorcycle insurance covers:
- Theft
- Fires and explosions
- Floods
- Natural disasters
- Collision with animals
- Falling objects
- Vandalism
- Hail
- Accidents with vehicles
When Is Comprehensive Motorcycle Insurance worth it?
As a bike owner, you depend on that two-wheeler for a lot. That’s why a comprehensive insurance is very important. Unlike other insurance policies, the comprehensive bike insurance additionally covers for your bike’s repair costs in the case of damage from external effects and accidents irrespective of whether other vehicles or motorbikes are involved or not.
Below are instances when a comprehensive insurance is essential:
You are financing your motorbike through a dealer or loan
Not everyone has the capital to pay the full amount upfront. That's where long-term financing comes into play. In most cases, this means securing a bank loan or getting help from credit facilities to spread out the cost. When you're buying a motorcycle on a loan or through financing, lenders may require comprehensive coverage to protect their investment. It ensures that both you and the lender are financially protected in the event of damage or loss.
You have an expensive or brand new motorcycle
If you own an expensive or new motorcycle, even minor damage from an accident could lead to significant repair bills. Not only will it hurt your wallet, but it will also hurt your heart. In such cases, the cost of comprehensive coverage is often far less than what you'd pay out-of-pocket for repairs. With comprehensive insurance, you're covered for accidental damage - whether or not another vehicle is involved - saving you from hefty out-of-pocket expense.
You are a new or inexperienced rider
New riders are statistically more likely to encounter road mishaps due to limited experience. Comprehensive insurance helps manage that risk, giving peace of mind while you're still learning the ropes.
You spend a lot of time riding
If you use your motorcycle daily - for work, delivery, or long commutes - your exposure to accidents, theft, and weather damage is higher. A comprehensive policy ensures you're protected no matter how often or how far you ride. If you belong to any of the scenarios above, getting comprehensive motorcycle insurance is definitely worth it.
How do I Select the Best Motorbike Policy?
To choose the best comprehensive motorcycle insurance provider for you, consider:
- Cost of premiums
- Degree of coverage by different providers
- Trustworthiness and reliability of insurance provider
- Claims process and purchase process
- NCD discounts
- Customer service etc
DirectAsia Insurance provides specialized insurance guidance and a No-Claim Discount of 30% (NCD30) while still listening to your requests so that you are offered all you need for comprehensive coverage. We personalize the needs for your car or bike, providing decent premiums tailored to your specific requests as compared to other providers.
Our policies are written in clear and simple language easily understandable by all, including non-natives. This way, you can skip the confusing jargon that comes with insurance policies.
Besides, we have a 90% customer satisfaction rate so be assured for the best service from this award-winning global insurance provider.
