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IT DOESN'T HAVE TO BE A MINEFIELD...

30th August 2008 – Accurate insurance premiums depend on numerous factors, which is often why two people with similar backgrounds and cover requirements might receive completely different quotes. To help explain the insurance buying and quoting process, Devitt has answered some commonly asked questions and provided tips to ensure you get the best cover for your needs.

Q&A

Why does it matter where I live?
Many insurers base their prices on postcode so inner-city dwellers might find their premiums higher than those in rural areas. This is because of the higher density of inner city traffic which also increases the risk of accident or theft.

Do I need to tell my insurer that I am using my motorcycle for work?
Yes. A policyholder who is using their bike for business purposes may pay a higher premium than someone simply riding for social or domestic purposes due to the increased time the bike is on the road and therefore, the increased wear and tear.

What are the most common types of cover?
Comprehensive is the most expensive type of cover because insurers will pay for losses caused by accidents, theft, fire and also windscreen damage. Some comprehensive policies also cover accessories to a designated maximum value. Other covers options include third party, fire and theft; or third party cover only.

If my bike is in a garage it’s safer, right?
Insurers accept that bikes are less likely to be stolen or vandalised if keep in a locked garage overnight – in fact, bikers are two-thirds more likely to have their bike stolen if its kept out in the open*. To recognise this, some insurers offer a garaging discount so it’s best to check when taking out your policy.

I only have a provisional license but I’ve had no accidents.
Unfortunately, the type of driving license held and the date it was passed will affect your premium rate, along with your accident record. A policyholder who has had a full license for more than 12 months is likely to pay less than a policyholder who has a provision license or has held a full license for less than 12 months.

How do I get a no claims bonus?
To qualify for a no claims bonus you must produce documentary evidence of claim free driving from your previous insurer. No claims bonus amounts vary between insurance companies so check with your insurer to find out what you qualify for. The discount is often worked out on a sliding scale so the longer you are claim-free, the higher your discount might be.

If I have an accident, do I automatically lose my no claims bonus?
This question depends on a number of things. If your insurer is able to recover the cost of the claim from the third party, or their insurance company, your no claims bonus will not be affected. Some companies, Devitt included, offer protection for your no claims bonus as an additional benefit of the policy. Check your policy carefully to see when the no claims bonus protection applies.
Remember in the event of an accident, your bonus discount might only be reduced rather than removed altogether so it pays to check with your insurer.

There are ways which you can reduce your insurance premium, although this varies between individual companies:

• Restrict the use of the motorcycle to you. This limits the insurer’s exposure as it is likely the bike will be used less.
• Agree to pay an excess. This means that you agree you are responsible for paying a contribution towards the cost of repair following an accident. The amount of the excess is agreed between you and your insurance company and can often be selected from several pre-set figures.
• Restrict the use of the motorcycle to social, domestic and pleasure or restricting the annual mileage.
• If you don’t have access to a garage as is often the case in urban areas, lock your bike up with a decent lock in addition to a steering lock and secure it to something immovable. Light motorcycle models can be easily lifted into the back of waiting trucks – Sports 125cc models were the most commonly reported bikes stolen between 2005 and 2007*.

Although it might be tempting to get the cheapest cover, in the event of a loss people who are underinsured might be unable to adequately recover their losses so it’s important to get a level of cover which will restore your peace of mind. This is even more important with new bikes as according to Devitt research, bikes younger than two years old made up 59% of theft claims between 2005 and 2007*.

Insurance premiums will vary from one insurer to another dependent on personal information about the policyholder, the bike being insured and even the market. The best way to ensure the best cover, at the best price, is to use a broker service like Devitt insurance that can provide quotes from a panel of insurers and tailor your insurance to suit your suits. Call the biker’s broker today on 0800 051 1793 for a quote or to discuss your insurance options.

*Statistics based on 2005-2007 claims data tables provided by NIG.

- ENDS -

For further information, please contact:

Linda Lo Castro
Marketing Manager
Devitt Insurance Services Limited
Tel: 0207 656 6830
Email: linda.locastro@rbsfinsure.co.uk
Web: www.devittinsurance.com

Notes to editors:

Devitt Insurance Services Limited is a specialist motorcycle insurance broker, and is part of The Royal Bank of Scotland Group. Authorised and regulated by the Financial Services Authority (FSA), the business grew from the success of Devitt DA, established in 1936, which revolutionised the motorcycle insurance industry with the innovative idea of offering customers instant insurance cover through the motorcycle dealer. Devitt’s success has allowed it to expand into other areas of Personal Lines insurance, including car and home insurance. Devitt is also recognised for arranging insurance schemes for employee groups, clubs, associations and other affinity groups.

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