If you ride a motorcycle, indeed, you know anything can happen anytime. So, the best you can do is put all the necessary things in place. And that includes motorcycle insurance. Now, knowing you are getting the best motorcycle insurance is a good feeling. The question that arises is how you know that the insurance policy is the best.
The wise way to go about that will be to compare the different motorcycle insurance quotes available in Singapore. So, you will need to purchase one, but it is best to be prepared before going ahead with that.
You have got to decide the type of insurance you really need. You will also have to agree on what factors determine how much you are willing to pay and how do you go about getting the best deal without cutting corners. Of course, cutting corners is punishable by law.
For the sake of this piece, we will compare three different insurance based on price and the amount of coverage they offer, but before then, let’s look at some assumptions to finding the cheapest motorcycle insurance in Singapore.
Assumptions for finding motorcycle insurance
There is a high chance that your motorcycle insurance will be affected due to the following factors:
Age
This is straightforward. The younger you are, the more expensive your insurance policy will be. This is because insurance companies know that young riders are likely inexperienced and can be more reckless than their older counterparts, hence the higher price.
Type of bike
The type of bike you ride will also affect the insurance policy price – we can agree this is a no-brainer as well. You cannot expect premiums for a street bike to cost more for a sport bike – that will be unreasonable. Sport bikes are built for speed, have more power than a street bike, and are susceptible to accidents or damage.
Age of the bike
The age of your motorcycle will have an impact on the insurance premium. Older motorcycles are significantly cheaper than insurance cover for new motorcycles. New motorcycles mean more expensive spare part, hence the higher premium.
An older bike may not be as fast and powerful as the new one. Thus, less risky. An older bike will result in a lower premium in comparison to new motorcycles.
Type of usage
The insurance policy for commercial bikes is always higher than that used for personal use. This is because the rate of use and handling is higher in a commercial motorcycle than in a personal bike.
Previous Claim History and No-Claim Discount (NCD)
NCD is an entitlement you can expect to get from your insurance company if you have made no claim for a year or more. Hence, the more the number of shares you have submitted, the more expensive you can expect the insurance.
In Singapore, you can usually get up to 20% NCD after 3 consecutive years of riding safely without claims. DirectAsia is the only company that offers NCD30 for those eligible for NCD20 for 2 or more consecutive years.
Types of motorcycle insurance and how to compare them
Price is an excellent factor to consider when faced with the challenge of choosing which motorcycle insurance company to go for. However, we can both agree that pricing isn’t enough. Some companies might be more expensive than others. However, they will be justified because they emphasized other essential things like customer service or reputation for more straightforward claims.
Anyway, what are the options available to you? Let’s find out
1. Third-Party Only (TPO)
Just as the name infers, third-party insurance is a type of liability insurance that helps you stay protected against any third-party claims. The downside here is that you will still be responsible for your own damage or loss, and that, notwithstanding the cause of those damages.
The TPO is the most basic form of motorcycle insurance you can buy. If you choose this insurance type, you can take solace in the fact that, in case of an accident, you will not have to pay for any damages to third-party vehicle, properties and other people when you at fault.
Ideally, third-party only insurance will cover:
- Injury to a third-party rider or a passenger on his or her motorcycle or the pillion rider on your motorcycle.
- Damage to another person’s motorcycle
- Damage to other people’s property.
Hence, if you want insurance cover against any claims from a third party only, this might be the best insurance to go for. You can expect prices to go from S$232 to S$1500, depending on the insurance company you approach for pricing.
However, you must be careful before signing up with any company because they may cover other things that another company doesn’t. For instance, some companies may cater for damage to third-party property with a claim of up to $500,000.
2. Third-Party, Fire, and Theft (TPFT)
In the case of a third party, fire, and theft, you will get all the coverage as TPO plus coverage for your motorcycle if it gets damaged or destroyed in a fire. The scope also covers if your bike was stolen.
Simply, in TPFT, you get coverage for:
- Everything in Third-Party Only (TPO)
- Damage as a result of attempted theft
- Damage as a result of fire
- Stolen bike
You might want to get this type of insurance because you are protected against third-party claims as well as your instance in case of fire or theft. So, if you are looking for an in-between but still want additional fire and theft situations coverage, the TPFT is what you need.
In Singapore, insurance companies offering this service can charge between $303 to $2000. As with any other insurance policy, be sure to understand all that the company covers before you commit to them. For instance, if your motorcycle gets stolen outside Singapore, some companies may only offer to pay up to 50% of the value of the stolen motorcycle. In contrast, another company will tell you their coverage doesn’t cover that.
3. Comprehensive
Comprehensive motorcycle insurance is the highest level of coverage you can get for you and your motorcycle. Generally, you can expect to get the following from comprehensive insurance:
- Same coverage as TPTF
- Damage that occurs as a result of an accident
- Personal injuries as a result of an accident
This policy will protect you from unforeseen circumstances. It is perfect for you if you don’t have any other form of insurance like personal insurance.
For pricing, you can expect from S$499 to S$3244 from popular insurance companies in Singapore. In addition, some companies offer unlimited coverage for death or bodily injury to a third party.
Conclusion
Getting your motorcycle insured is not a straightforward endeavor. Several factors, such as price and cover limits, you have to consider before committing to an insurance company. However, whatever you decide, one thing you must take note of is the level of coverage you have.
Does the insurance cover if your motorcycle gets stolen or destroyed outside Singapore? Does the company cover damage to third-party property? And what is their price compared to others with similar coverage? These are some of the questions you must answer before choosing your insurance company.
On top of that, you also have to understand that your insurance policy pricing is affected by your age, your riding experience, the purpose of riding, and your no-claim records.