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Questions about
motorbike insurance
The Main Policy Documents
(Compulsory Insurance):
Cover Note
A temporary document typically issued when you first take out an
insurance policy. It sets out the BASIC TERMS OF COVER. These may
not be as comprehensive as when the policy document itself is
issued.
Certificate of Insurance
The "permanent" document setting out a summary of the cover in your
particular case and required (as with cover notes) when you seek,
for example, to "tax" your motorcycle.
Policy Schedule
This is a document setting out in detail what YOU are/are not
covered for.
Endorsements
These are not licence endorsements but modifications to the main
insurance policy applicable to YOU.
Policy Terms & Conditions
These are the general terms and conditions of your policy which you
need to be familiar with – but you also need to be aware of your own
individual policy schedule and endorsement provisions.
What am I covered for?
Always(since it is compulsory by law)
Injury/damage to others (ie third parties)
Riding for social domestic and leisure use (this includes to and
from work BUT NOT in connection with work)
Often
Fire/theft relating to your own motorbike
Legal representation in defending a claim/prosecution arising out of
an accident
Riding someone else's motorbike or vice versa – but usually only
third party cover here – obviously permission must be given for the
riding.
What am I not covered for?
Depending on your policy the following are not always covered:
Accessories – eg top boxes
Legal costs – solicitors and other costs in the event of accident
Riding for business – eg courier
Breakdown and recovery
- but may be available as part of a "package" often with separate
insurers and separate terms and conditions etc.
Your obligations to the insurers:
Things they need to know:
No insurer will insure you unless you are a "good risk". If you've
had 10 convictions for drinking and driving, together with 20 for
dangerous driving all over the last 10 years then you will probably
find it well nigh impossible to get insurance – always assuming of
course the courts are still allowing you to drive at all. You have a
"duty of good faith" to insurers to tell them of anything that is
likely to weigh in their minds. This duty is ongoing and continuing
– not just before you get insured. The duty concerns for example
driving convictions, fixed penalties, accidents etc.
Change of vehicle/method of storage/bike modification.
All general requirements for reporting.
Some you will need to report upon renewal – but others as and when
the event occurs.
Cancellation
Condition of motorbike – as a very basic requirement, your bike
should be road worthy. Often your insurance policy will require it
to be maintained to an even higher standard such as "reasonable".
THE CONSEQUENCES OF NOT REPORTING RELEVANT MATTERS TO YOUR INSURANCE
COMPANY/BEING IN BREACH OF YOUR POLICY CAN BE VERY SERIOUS. YOUR
INSURERS CAN REFUSE, FOR EXAMPLE, TO INDEMNIFY YOU AGAINST CLAIMS BY
OTHERS WHICH CAN RUN INTO MANY THOUSANDS OF POUNDS AND COULD
BANKRUPT YOU.
Accidents:
These must be reported to your compulsory road traffic insurer
within a set time rate – typically 7 days. REMEMBER that if you make
a claim, CHOICE OF LEGAL REPRESENTATION IS YOURS. You do not have to
go along with the panel solicitors chosen by your broker. They may
be pressurising you to do so because THEY receive a large sum by way
of referral fee (£600 is a typical one even in a small claim). The
important thing is to receive specialist legal advice from a
specialist biking solicitor – see the Legal Section of this website.
General pitfalls and misunderstandings:
For the purpose of this section the word "Insurer" means the person
with whom you deal – ie insurance company
director/broker/consultant/ intermediary.
Valuing your damaged bike and property:
Insured Value: This is the maximum value for which you are insured
under the terms of your policy. IT IS NOT NECESSARILY the amount you
will get following a claim.
Replacement Value: This is the cost to YOU for REPLACING the item.
Again it is NOT what you will get following a claim – unless you are
insured "new for old" – and have paid the appropriate premium!
Market Value: THIS IS WHAT YOU WILL GET FOLLOWING A CLAIM. It is the
current value of the item in its undamaged state as immediately
before the damage.
Customs & Classics: By their very nature customised motorcycles (and
to a lesser extent classics) are "one offs". That means valuing them
in the event of damage/write off can be extremely difficult. The
valuer has got to consider various aspects including whether there
is a market in that particular bike. If so what is the value? BE
WARNED THAT YOU MAY NOT GET BACK THE VALUE OF ALL THOSE LOVING
TOUCHES THAT YOU HAVE PUT TO THE BIKE – SPECIAL PAINT JOBS/ CHROME
WORK/THOUSANDS OF HOURS OF "LTC" ON YOUR "PROJECT".
Geographical extent of cover:
This entirely depends on your policy. It should obviously include
the UK. But very few actually include Europe and beyond.
Hire Bike:
In the event of an accident which was not your fault (or at least
mainly not your fault) it may be possible to hire a bike for a
reasonable period on extended credit.
Cancellation + changes to your policy:
These days basic bike insurance premiums amongst the specialist
insurers are fairly competitive in general. If YOU cancel or notify
any changes (eg change of bike/modification etc) be aware that your
insurer may make an administrative charge – and frequently does.
Exceptions to your policy cover:
These are often numerous and various. BE AWARE OF THEM. Be aware of
any particular "endorsements" applicable to your policy. General
exceptions can include:
Use of your motorbike for track days/racing etc.
Riding by someone who is not qualified to do so – either because he/
she has not passed their bike test or disqualified in some other
way.
By using the motorbike unsafely.
By using a motorbike which was not in a reasonable condition.
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