Can you buy a motorcycle without insurance?
Insurance can be expensive, especially if you’re a young rider. If you’re 17 or under, you can expect to pay much higher bike insurance premiums than older drivers. This is mainly because there’s plenty of data to show younger riders are more likely to crash. Your premium is also affected by your vehicle. So a 50cc scooter will cost less to insure than a 125cc scooter or motorcycle.
So you’ve managed to find a good quote online that’s considerably cheaper than the others. But after paying for your brand new scooter, you realise you can’t pay the entire premium in one go. Luckily, most insurers allow you to pay a monthly premium instead.
How does this work?
Most reputable insurance providers will give you the option to pay with a monthly direct debit instead of one lump sum. This is a much more manageable situation for many drivers, but especially so for young riders. Once the insurer has offered you a quote, there will be an option to pay in one go, or monthly.
It’s worth noting however; this will likely mean you paying more money eventually. Granted, it might only be an extra few pounds, but insurers apply insurance tax to premiums, and this will be more on a monthly payment. You should have this explained in the breakdown of costs, so make sure you read the fine print.
A monthly direct debit usually starts with one larger payment that’s basically considered a deposit on your premium. The rest of your premium will then be broken down into either 9 or 11 payments depending on your length of cover. These will usually be the same amount, and can be set to come out of your account on a certain day.
Bare in mind though, if you don’t need the policy once you’ve opened it (say you’ve sold your scooter, or it’s been written off), you’re still eligible for the full cost of the premium. This is because you make an agreement with the insurer that you will pay the full amount they’re owed, regardless of whether you use it in full. This can seem mean, but it’s the same as any financial agreement, such as a phone contract.
Is it better to pay monthly?
There isn’t a yes or no answer to this question. It depends entirely on personal preference. If you’re able to pay off your motorcycle insurance premium in full, this might be the better option, as you won’t have to worry about it again. However, if money is tight, then paying monthly instalments is the way to go. You just have to accept that you’ll end up paying slightly more for the same cover.