A Beginners Guide To Bike Insurance

The Difference Between An Insurance Company, Agent, and Broker

Insurance agents are employees of a particular insurance company. They specialize in the policies of that company, but can only offer discounts in accordance with their company's guidelines. However, if and when you need to make a claim an agent can be more effective than a broker.

Insurance brokers are independent individuals who do business with several insurance companies and, because of this, can sometimes offer you unbiased advice on the lowest prices for specific types of bike insurance coverage. If you are having a difficult time finding motorcycle insurance because of your age or driving record, an insurance broker can often be of more help than an insurance agent because the broker can shop around on your behalf.

Insurance companies are the actual distributor of the insurance policy. Each insurance company can offer different premium rates which depends on the type of motorcycle to be insured. Some insurance companies won't insure certain types of motorcycles.

Understanding Bike Insurance

Motorcycle insurance is not quite like automobile insurance because the basic premium rates are dependent on the type of motorcycle being insured. For example, a motorcycle with a small engine will be less expensive than a motorcycle with a larger engine. Also, the insurance coverage will be different on a touring motorcycle in comparison to one that is designed for speed.

However, any South African insurance company that offers bike insurance will offer coverage in the three basic categories of third party, third party, fire and theft and fully comprehensive. It is important to know what each type of coverage provides, so be sure to ask your insurance agent or broker to explain the details to you.

What You Need To Provide To The Insurance Company

When purchasing motorcycle insurance you will need to provide the insurance company with some personal information. This information can further help the insurance company in determining the best coverage and rates for you.

Your address: Within South Africa, if you live in a big city with a lot of people your bike insurance rates may be more than if you were to live in a town with a small population. The logic here is that the more people living in an area the higher the chances for the insured to make a claim.

Your age: Your age can work for you, as well as against you. If you are under the age of twenty-five, for example, your premium will be higher than if you were thirty-five. People under twenty-five may have good eyesight and reflexes, but lack driving experience. Those who are seniors can also expect a higher premium rate for their bike insurance because, although they have driving experience, their reflexes and eyesight is not as good as they once were. At least this is how insurance companies look at age.

Your Driver's License and History

The class of your license and the length of time you had that license can also help obtain discounts from an insurance company. Your driving history will most certainly have an impact on the premium rates you'll pay for motorcycle insurance. If you have received tickets in the past or have had accidents, regardless of who was at fault, this will definitely affect your premium rates, and in some cases can even cause the insurance company to deny you coverage.