What does third party motorcycle insurance cover?
If you’re just buying your first scooter, getting the right insurance can be confusing. How much is motorcycle insurance? Prices vary, there are loads of different options available, all offering different levels of cover and options. One of the most important things to choose is the level of cover you want. We are often asked who has the cheapest motorcycle insurance? First we have to decide on the cover you want which will reflect the price.
There are three levels of cover: third party only; third party, fire and theft; and fully comprehensive. The level you need will depend on a few things. For example such as your budget and what you plan to use your scooter for. Third party only is the cheapest level, and fully comprehensive is the most expensive. They each offer different amounts of cover to you and any other drivers involved in an accident.
What does third party mean?
Third party is a term used frequently in insurance, but isn’t usually explained. It is cheap bike insurance In an accident that involves you and another person, you would be the first person and the other driver the third person. Your insurers need to know about any third party accidents because they either need to pay out if you’re at fault, or recover their money if you’re not.
The most basic level of insurance you can buy from any provider is Third Party only. This is lowest legal requirement for you to be on the road, and means you can pay for any damage you cause in an at-fault accident. It also covers any third-party injury claims, although the pay out limit might vary depending on the insurance provider.
Having Third Party only cover means you can’t claim for any damage to your scooter or motorcycle in an at-fault accident, and so you’d have to pay out of your own pocket. While this seems like the cheapest option when you’re buying insurance, it can become very expensive if you can’t make a claim.
Do all levels have third party cover?
Each level of cover you can buy gives third parties the ability to claim against you. This is because if someone isn’t at fault for an accident, they are legally entitled to be put back in the same financial position they were in before the accident. In short, this means having their vehicle repairs paid for.
The main thing that changes with the different levels of cover is what you can claim for. Third Party, fire and theft allows you to claim for damage to your scooter due to a fire, or if it’s stolen. This can be a useful option to have, as motorbikes will usually be written off in either of these situations. It doesn’t cost much more than Third Party only, and so can be a good investment.
Which level of cover you choose will depend mainly on your budget, but on other things too. If you can’t afford fully comprehensive, try to get Third Party, fire and theft. Having the option to claim for these is useful. Even if you’re young, your insurance premiums will drop after a few years on the road.