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Is Motorcycle Insurance Obligatory In Australia?

In Australia, it is mandatory to at least obtain a CTP Insurance to get on a motorcycle and it is illegal to ride without one. In different states, it might also be referred to as Green Slip or Transport Accident Charge. CTP Insurance (Compulsory Third Party) This type of insurance is required by law in order for an individual to be able to register a motorcycle. Aside from it, all other optional types of Insurance can be found below. CTP Covers: It offers financial protection to the rider for personal injuries, as well as compensates other people who have been injured in an accident in the case the CTP Insured rider was at fault. CTP Does not cover: The costs of repair on the motorcycle, neither damaged property, nor other vehicles.

Why You Must get Motorcycle Insurance

No responsible motorcyclist should ever get on the road without a proper insurance policy. Riding without insurance is not only illegal, moreover, it may also cause a great deal of financial harm to you and other individuals.

Different types of insurance provide a variety of benefits to the holder ranging from protecting you from third-party property damage liability to motorcycle safety from theft, fire, and natural disasters.

Best motorcycle Insurance

Optional Types of Insurance and Which to Get

The Optional Types of Motorcycle Insurance listed below are ranked in order from simplest and most basic to most complex and full-covering. All optional insurances are purchased after already owning CTP. 

 

The full comparison between options can be found in the table below the list of Optional Insurances.

 

Third-Party Property Liability Insurance

 

Third-Party Property Liability is the next basic form of Insurance. It protects the rider from the legal liability of damage, caused to private property.

 

Third-Party Property Liability Insurance covers:
Repair costs to other people’s damaged property and all legal costs in case the victims of an accident decide to sue you.

 

It does not cover: 

The cost of any necessary repairs or parts replacement on your motorcycle after an accident. Also does not cover theft, fire, or natural disaster damage.

 

Type of Insurance

Required by Law?

Injuries or death to others and the rider?

Damage to the third-party property?

Damage or loss of the bike from theft or fire?

Damage to the bike from traffic accidents?

CTP
Yes
Yes
No
No
No
Third-Party Motorcycle Only
No
No
Yes
No
Yes
Third-party property liability
No
No
Yes
No
No
Third-party, fire, and theft
No
No
Yes
Yes
No
Comprehensive Insurance
No
No
Yes
Yes
Yes

Third-Party Property- Motorcycle Insurance

This is the next entry-level Insurance option that covers the bill for damage that your motorcycle causes to private property in the case of an accident. Another great benefit it provides is the fact that it covers up to $5,000 for damage to your motorcycle caused by third-party uninsured drivers.

Third-Party, Fire, and Theft Insurance

Should you cancel your Motorcycle Insurance during the winter? If you are absolutely certain that you are not going to use the motorcycle and it is stored in a 100% secure location, then it might be a budget option to cancel the insurance during the non-active months of the year. However, it is preferable that insurance remains active throughout the year. Protection from disaster and theft is needed at all times, not to mention every biker gets out for an impulse ride if the weather allows it, regardless of the month of the year.
What reflects on the cost of Motorcycle Insurance?
  1. The type of Insurance policy you choose. (The more options it covers, the higher the cost)
  2. Newer motorcycles cost more to insure than old ones.
  3. A clean car/motorcycle driving history can lower your premiums, resulting in a much lower insurance policy cost.
  4. Using a secure parking-spot can also lower your premiums. If the insurance company is provided with proper evidence that you use a safe garage, it might lower the cost of Insurance from theft.

In summary; Which Option Should You Choose?

Motorcycle insurance is an essential part of feeling safe while riding your beloved machine. CTP Insurance is required by Law. Optional ones are highly recommended and are there for you to choose from.
If the budget is an important aspect, influencing your choice, consider whether your motorcycle is new or old. If you are riding a new and expensive motorcycle it is highly recommended that you choose a comprehensive policy.

However, if you are riding a 20-year-old motorcycle, getting the bare minimum insurance might be a better option budget-wise. Older vehicles get hungry for repairs and part-replacement more than they need a full insurance policy.

Dirt-bikes and other off-road vehicles are also not a good candidate for comprehensive insurance. In those cases, the absolute minimum is recommended as well.
Always consider how much your motorcycle is actually worth, over-insuring a machine that costs just 2.000$ might not be the best idea.

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