Motorcycle insurance – in its most literal terms – is an agreement of financial cover against loss or damage to any vehicle that has two wheels and is powered by a mechanical engine. Motorcycles also include those vehicles which include a sidecar or a trailer, and even 3 wheeled vehicles can be classed as motorcycles – if two of those wheels are on the same axle.

Motorcycle insurance has been compulsory for all UK motorcyclists since the establishment of the Road Traffic Act over 20 years ago. There are now 3 defined levels of cover available, with the highest being Fully Comprehensive. At this level insurers will pay for any loss or damage to any involved parties and their property, including the policyholder, where the policyholder is at fault. It also includes cover in the case of a theft of the motorcycle or damage caused in the unlikely event of fire.

A third party fire and theft policy fulfills all the basic needs of the Road Traffic Act. It pays to the injured third party if the accident was the fault of the policyholder. The insurance company will pay for the cost of repair, any lost income by the injured party, their medical bills, and for medical needs of any pillion riders. They will also pay any other damages the policy holder is legally obligated to pay due to the accident. Any damage to property of the third party is also covered in this policy. Beyond the minimum requirement commanded by the Act, the policy provides coverage for the policyholder should their motorcycle be damaged due to a fire or should it get stolen. The point to note here is that this policy does not cover any damage to the policy holder or their property in the event of an accident.

Finally, there is the most basic type of insurance policy known as the Third Party Only policy. This type of policy covers only the motorcyclist, along with any pillion riders and the damage to property. It does not include costs of repair work done on the motorcycle or replacement if it is stolen.

Bikers will always look for insurance premiums that are as low as possible, and one of the biggest discounts available is through the no claims bonus. If you have been riding for a number of years without having made an insurance claim, many insurance companies will apply a discount to your premium of as much as 50%. Obviously the more years that pass without making a claim, the larger this discount will be.

There are other steps riders can make in order to lower their bike insurance premiums. For example, limiting their amount of use of the motorcycle and perhaps using public transport on occasion could help the biker to qualify for a limited mileage discount (in the insurers eyes, the less time spent on the road the less likely the chances of an accident). In terms of the motorcycle itself, it is usually more favourable to avoid the more high-powered machines and go for a more standard motorbike. Insurers can often be put off by large sports bikes due to the higher risks they carry. One final premium-cutting measure would be to increase the security of your motorcycle so as to reduce the risk of theft. Locking it away in a garage, or if that’s not possible – purchasing a heavy duty chain and padlock, will certainly help to keep your motorbike insurance costs to a minimum.

Raphael Waterstone writes more about motorcycle insurance at Motorbike Insurance Online, where you can find articles and resources on various subjects such as Ducati insurance