With more than 950,000 motorcycles registered in Australia as of January 2022, it’s fair to say the two-wheeled vehicles are a popular mode of transport.1 Whether you rely on a motorbike for daily transport or for casual rides when the mood strikes, motorcycle insurance – like a helmet or other protective riding gear – can help cover you when an unexpected event or accident occurs.
But with a range of cover types to choose from, and different circumstances informing different needs, it can be tricky to know what the best motorcycle insurance would be for your situation.
Whether you’re looking for cheap motorcycle insurance or comprehensive cover to protect your ride, we know searching online and getting quotes to compare motorcycle insurance options can be overwhelming. To make it a little easier, we’ve answered some of the most commonly asked questions about motorbike insurance below.
Is motorbike insurance compulsory?
In Australia, there’s a bare minimum level of insurance required by law.2 This type of insurance is called compulsory third party (CTP) insurance, which is also known as Green Slip insurance in New South Wales.
CTP insurance must be taken out when you register your motorbike. In some states and territories, such as Victoria, it’s automatically included as part of your vehicle registration fee.3
What does CTP insurance cover?
Compulsory third party insurance helps provide cover for death or injury to other parties when you, or the person riding your motorcycle, is at fault in an accident.2 It generally doesn’t cover damage to your own vehicle or other property. As CTP insurance policies can vary across Australia, it’s important to understand what’s specifically covered in your state or territory.
“Motorcycle CTP insurance helps cover your liability, and the liability of anyone who rides your motorbike, for injuries caused to others in a motor vehicle accident,” says Mervyn Hartley, Youi Head of Product – Motorcycle.
Youi offers CTP insurance for motorbikes in NSW and South Australia.
What are some other motorbike insurance options?
While CTP can help protect you against damage to other parties, what would happen if your motorcycle or riding gear were to be damaged, or if your motorcycle was to get stolen?
“An accident could be a big financial burden, especially if you have finance owing on the motorbike or it’s caused damage to another vehicle,” says Hartley.
“Youi offers cover for these kinds of events, and our dedicated team of advisors are there to help sort things out for you at what may be a very stressful time.”
There are a number of options when it comes to motorcycle insurance. While cost is likely to be high on the list of considerations, it can also help to think about what might be the best motorcycle insurance to suit your needs and lifestyle.
“At Youi, we understand that motorcycle riders value independence. While many people want to know about our lifetime guarantee on repairs4 and what excess they can choose, when it comes to claims time, every situation is unique and our advisors want to go the extra mile to help our customers, to answer all their questions and make it as easy as possible,” explains Hartley.
If you’re looking for more cover than mandatory CTP motorbike insurance might provide, here are some of the options you might like to consider.
Third party property only motorcycle insurance
This is an entry-level type of insurance that can help cover damage your motorcycle may cause to someone else’s property.
Youi Third Party Property Only motorcycle insurance includes cover for up to $20 million in legal liability if your motorcycle causes damage to someone else’s property.5
Third party fire & theft motorcycle insurance
Third party fire & theft motorcycle insurance can help protect you for damages that your motorcycle may cause to other people’s property, as well as damage caused by fire or theft.
At Youi, our Third Party Fire & Theft motorcycle insurance also includes up to 14 days of car hire,6 towing and storage costs to the nearest suitable repairer after an insured event,7 as well as combined costs for emergency transport, repairs and accommodation up to $1,000 if you’re more than 100 kilometres from home and can no longer safely ride the motorcycle after an insured event.8
Comprehensive motorcycle insurance
This type of motorcycle insurance can help cover you for damage to your motorcycle and damage that your motorcycle may cause to someone else’s property.
Youi’s Comprehensive motorcycle insurance can cover you for a range of insured events, including fire and theft,9 plus storms and floods.10 Comprehensive policyholders also have access to our 24/7 roadside assistance service,11 and cover for up to $1,000 worth of your – or your pillion’s – riding gear if it’s damaged or stolen as the result of an insured event.12
“Accidental damage is the number one claim motorcycle customers need our help with,” says Hartley. “This is followed closely by them taking advantage of the Youi roadside assistance service, which is automatically included in their Comprehensive policy.”11
Is my motorbike trailer covered by motorcycle insurance?
At Youi, we have a number of optional covers that can be added to your policy, including motorcycle trailer cover. This can be included if you have either a Comprehensive or Third Party Fire & Theft policy, and can provide up to $5,000 of cover for your registered motorcycle trailer.6
Do I need different insurance if I use my motorbike for work?
If you intend to use your motorcycle for business purposes, you’ll need to let us know during the quote process. If your cover is accepted, your policy schedule will show that your motorbike is covered for business use, in addition to private and domestic purposes.
“Youi offers cover for motorcycles used for work,” says Hartley. “You can even choose to add a hire car to your policy if you’ll need something else to get to work in while your bike is being repaired.”
How does Youi motorcycle insurance differ from car insurance?
“Aside from being able to cover things such as your riding gear, motorcycle insurance is very similar to car insurance,” says Hartley. “And our claims team offers you the same level of dedication and expertise when the worst happens.”
Should I cancel my motorcycle insurance in winter?
You may choose not to ride your motorbike at all in the cold winter months, but that doesn’t mean motorcycle insurance goes into hibernation as well. Whether you keep your bike in storage or in your garage, unexpected events such as fire and theft can still wreak havoc on your plans. A level of insurance that protects against such events could help cover you should the unexpected occur.
How can I reduce my motorbike insurance premium?
Each insurer calculates premiums differently, but here at Youi, we may also reward you with a lower premium for parking securely and driving safely, along with other behaviours that could lower your risk profile.
If you’re considering purchasing or switching your motorcycle insurance, a quote could help you find a level of cover that’s right for you, and give you an indication of how much it might cost.
1 Source: Australian Government – Bureau of Infrastructure and Transport Research Economics Statistical Report, 2022
2 Source: Canstar – Motorcycle insurance
3 Source: Vic Roads – About the Transport Accident Commission (TAC) charge
4 Where a repair is completed by an authorised Youi repairer, Youi guarantees the quality of the repair for as long as you remain the owner of the item.
5 Available with Comprehensive, Third Party Fire & Theft and Third Party Property Only policies (excludes CTP). For more details, see the PDS
6 An additional cost applies and is available as optional cover with Comprehensive and Third Party Fire & Theft policies. Limits apply. For more details, see the PDS
7 Available with Comprehensive and Third Party Fire & Theft policies. Limits apply. For more details, see the PDS
8 If your motorcycle’s unsafe to ride after an insured event and you’re more than 100km from home, we’ll reimburse you up to $1,000 for combined emergency transport, accommodation and/or repairs. Available with Comprehensive and Third Party Fire & Theft policies. For more details, see the PDS
9 Loss or damage caused by a bushfire within the first 72 hours of your policy commencing is only covered in limited circumstances. Available with Comprehensive and Third Party Fire & Theft policies. For more details, see the PDS
10 Loss or damage caused by a flood, storm or hail within the first 72 hours of your policy commencing is only covered in limited circumstances. Available with Comprehensive and Third Party Fire & Theft policies. For more details, see the PDS
11 Youi Roadside Assist included with Comprehensive cover only. Exclusions, limits and additional fees may apply. Cover not available within first 24 hours of taking out, or upgrading to, Comprehensive cover. See the T&Cs and PDS for full details
12 Available with Comprehensive and Third Party Fire & Theft policies. Riding gear is only covered for theft while stored in a secured storage compartment on the motorcycle or motorcycle trailer. For more details, see the PDS
