First-time rider? Here's everything you need to know about motorcycle insurance

Congratulations on your new purchase. It’s an exciting time for any rider, seeing his/her own motorcycle parked at home. For many, it is that one dream that they have long waited to turn into reality, and now that it has, you have some responsibility to fulfill. Yeah, that's right.

Now, that you are a rider with your motorcycle in hand, it’s time to act responsibly and get it insured. Being a motorcycle rider, it should be your motto to ‘Ride safe, Ride insured’. Why? Well, that’s because when riding a motorcycle, or any motor vehicle for that matter, there’s always an inherent risk of an accident or collision. No matter how safe of a rider you are, disaster can strike at an unknown hour to anyone at any place - be it the hustling-bustling streets of Metro Manila or the quiet, picturesque roads of Palawan. And when the disaster strikes, you’ll be left with scars - both literally and financially.

It is at this hour that motorcycle insurance will act as a safety net, protecting you against sudden expenses - be it medical bills, repair or replacement costs, or damage to others or their property.

Overall, with the right motorcycle insurance in hand, you can have fun and enjoy every minute of your latest possession. In this article, we’ll talk about everything related to motorcycle insurance, so continue reading and get all the knowledge on the subject.

Understanding motorcycle insurance

What is motorcycle insurance?
Similar to car insurance, motorcycle insurance offers financial protection to the owner against various risks like theft, accident, and natural disasters. Thus covering damages to the motorcycle and third-party liabilities.

Motorcycle insurance - Importance

It is a fact that motorcycles are more cost-efficient compared to cars, both in terms of price and fuel. However, motorcycles are several times riskier options to commute compared to their four-wheeled counterparts.

As per a statistic, motorcycle riders are five times more likely to get injured or die in a road accident compared to other road users. It is pretty obvious because motorcycles have no gear to protect the rider like airbags or seatbelts. Furthermore, unlike cars, motorcycles do not have a hard exterior, leaving the rider's body fully exposed to the environment and the dangers of the road. With all this, motorcycle insurance seems like a smart option for Filippino riders to protect themselves from the financial liabilities of getting involved in a road accident.

The usefulness of motorcycle insurance can be understood from the fact that when involved in an accident or theft or natural disaster, it offers compensation for medical bills of the rider and third party involved, and covers the cost of repair and replacement.

To sum up, motorcycle insurance is important because -

• It is a Legal Requirement. In the Philippines, the law requires every rider to have third-party liability insurance. It is even a pre-requisite for the LTO registration of your motorcycle.
• It offers Financial Protection. In case of an accident or theft, motorcycle insurance will cover your repair and replacement cost.
• It is a source of calm, Peace of Mind. With motorcycle insurance in hand, riders can move around freely knowing that if something unfortunate happens, they are covered.

Motorcycle Insurance - Coverage options

To choose the right insurance policy for your motorcycle, it is essential to understand the different types of coverage available. The table below lists some of the most common coverages -

Third-Party Liability Coverage	CTPL insurance is the bare minimum insurance requirement by law. It covers damages or injuries caused to third parties.
Comprehensive Coverage	This one offers financial protection against theft, vandalism, and damages caused by malicious acts by third parties.
Personal Accident Coverage	It covers expenses that follow the insured after an accident; it includes death, disablement, and loss of income.
Acts of God/Nature Coverage	If in case the insured motorcycle gets damaged due to a natural disaster like earthquake, typhoon, or flood, this coverage will cover the vehicle's repair or replacement cost.
Collision Coverage	This coverage offers financial protection against damages caused to the motorcycle due to a collision with another vehicle.
Own Damage	This coverage covers only damages to the insured motorcycle and not third-party liability.

Motorcycle Insurance - Cost

One of the most asked questions around motorcycle insurance is ‘How much does it cost to insure a motorcycle?’. While there’s no exact answer to this question, we can elaborate on the factors that decrease motorcycle insurance prices in the Philippines. The list includes -

Factors influencing motorcycle insurance cost - Rider’s age  Years of riding experience  Type and model of the insured motorcycle Rider’s location Rider’s history and claim record

So, in general, insurance providers in the Philippines consider the net price of the motorcycle along with the above-mentioned factors to calculate the insurance premium of a policy.

Note, the price of motorcycle insurance will vary from one insurance provider to another, but typically, the price starts at PHP 250.

Motorcycle Insurance - Tips to choose the right policy

When you are a new motorcycle owner, it becomes quite tricky to choose the ideal policy for you that best fits your requirements and budget. To help you with this task, we have curated a list of some essential points to consider. The pointer goes as follows -

• First and foremost, assess your needs. It is based on how often and where you ride.
• Take into account your motorcycle’s value and insurance budget.
• Research and compare quotes from different providers.
• Take note of customer reviews and, if possible, take customer feedback.
• Ask questions about policy inclusions and hidden charges.

Motorcycle insurance - Understanding the policy

It is crucial to thoroughly understand your motorcycle insurance contract before finalising the deal. Why? That’s because an insurance agreement has several key points the insured must have full clarity on; this will secure him/her from getting any surprises in the future at the time of raising the claim. The below-mentioned table lists the key pointers one must consider when signing an insurance agreement -

Key points to consider in a motorcycle insurance policy -

• Coverage scope: get full complete clarity on the inclusions and exclusions
• Policy renewal terms and conditions
• Full understanding of the deductible amount and its effect on the premium
• Complete understanding of the claim process
• Documents required to file the claim
• Additional benefits available to enhance the policy
• Knowledge of hidden fines and other penalties

Remember to get full clarity on every aspect of your motorcycle insurance policy. Never shy away from asking questions, as it might cost you heavily later.

Motorcycle insurance - What to look for in an insurance provider

When out there to choose an insurance provider for your beloved motorcycle, it is essential to look for certain qualities. Doing so will benefit you in the time needed, that’s when an unfortunate event or accident takes place. The table below mentions the qualities to look forward to in a motorcycle insurance provider -

Qualities to look for in a motorcycle insurance provider - Should offer a range of coverage options, including CTPL, Comprehensive Insurance, Personal Accident Coverage, Own Damage Coverage, Acts of God Coverage, etc. Offers the rider tailored policies that suit their unique needs and requirements. This ensures that you pay for the coverage you need. Thus making the policy cost-effective.  It should have a hassle-free claim process, thus ensuring the rider gets back on the road soon after the incident. Round-the-clock customer service is a must. This will ensure assistance when needed, offering complete peace of mind to the rider. There’s nothing like an insurance provider offering additional benefits like towing service, roadside assistance, and more.

Bottom line

Motorcycle insurance is essential for all riders, be it new or experienced. While Compulsory Third-Party Liability (CTPL) insurance is mandatory by law, investing in Comprehensive Insurance is a wise move that will leave you with added financial protection (against accidents and damages) and immense peace of mind when riding on the road. It is, therefore, essential to do proper research and comparison to ensure the perfect balance of protection and affordability.

Remember a good insurance policy is like a silent guardian that gives freedom to fully enjoy your riding time. Just by understanding the different parameters of insurance like its need, factors affecting its cost, coverage options, etc, you’ll be able to make a well-informed decision. The best part is, we have that covered for you in this blog.

Also Read: Top 15 car insurance concerns in the Philippines—Answer