It is no secret that motorcycle accidents are over-represented on Singapore roads. In our previous blog post, we talked about safe riding habits that every rider needs to practice. Even as a safe rider, you can get into mishaps sometimes. So it is in your best interest to know what your motorcycle insurance entails other than that it is required by law to have one.
At the very least, you know that your motorcycle insurance will cover for damages in an accident. But you may not know to what extent the coverage of your current policy is. This post aims to give you a basic understanding. After reading this post, you might want to dig out your insurance document and have a read so that your expectations are aligned. You don’t want to be in a situation where you make a claim only to realise you are not given the right extent of coverage.
There are only 3 levels of coverage
No matter which insurer you sign up with, understand that motorbike insurance generally comes in three levels of coverage.
- Third party onlyThis is the minimum coverage that you can expect in Singapore. All it does is cover the damages and injuries you inflicted onto another party and their property (imagine crashing into a signage or shop).
- Third party and theftIn addition to the third party coverage as stated above, this plan will also cover you in the event of fire, theft of your bike and the damaged caused in the attempt of theft.
- ComprehensiveAs the name implies, it gives you a broader coverage that spans damages to your bike, medical expenses and even vandalism.
Naturally, the higher the coverage, the more your premium is going to be. But regardless of category, there a few factors that will affect your net premium amount.
5 Factors that affect the pricing of your insurance
Insurance premiums are pegged to how risky you are on your bike, which will affect the chances of you making a claim; and how expensive your claim can get.
- AgeInsurance companies cannot predict your risk level, but they have found that younger riders tend to take higher risks. So if you are between 18 and 25 years old, you can expect to pay a higher premium.
- Make of your bikeInsurers assume that the more powerful and supercharged your bike is, the more risk you will take on the road.But if you think that your vintage Vespa can get you a lower premium, think again. The premium is also affected by how costly your spare parts are going to be when repaired. Vintage motorbikes come with hard to get, and thus expensive, parts.If you make modifications to your bike, chances are your insurance claim will be immediately rejected. Check with your insurer about the modifications before you buy any plan.
- How you use your bikeAt the basic level, we all use our bikes for social reasons. Majority also uses it to commute to work. Some use it in the course of their work, e.g., for meeting customers.You need to choose the appropriate coverage according to how you use your bike – private, commute or business use. Say, you meet with an accident while using it to go to a customer meeting, but your insurance only covers for private use, you will face challenges in making the claim.
- How much you use your bikeYou average annual mileage will affect your net premium simply because the more you are on the road, the higher the risk of an accident.
- Claims historyThis is the factor that most affect your premium. You will get discounts for not having made a claim. At Direct Asia, if you have a no-claim record of one year, you get a 10% discount on your next renewal. For two consecutive years of no-claim, you get 15% discount and for three consecutive years or more, you get a 20% discount. This discount validity is also tied to our strict rule of reporting any accidents within 24 hours.The interesting thing to note is that the discount is affected as long as you make a claim, even if you are not to be blamed for the accident.
This article serves to give you an overview only. You will need to check with your insurer or call our customer hotline on 6532 2888 to get complete details.
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