Is Motorcycle Insurance Obligatory In Australia?
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.
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?
Third-Party Property- Motorcycle Insurance
Third-Party, Fire, and Theft Insurance
- The type of Insurance policy you choose. (The more options it covers, the higher the cost)
- Newer motorcycles cost more to insure than old ones.
- A clean car/motorcycle driving history can lower your premiums, resulting in a much lower insurance policy cost.
- 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.