Understanding motorcycle insurance

Motorcycle insurance is a binding legal requirement for all motorcycle owners in Singapore. It’s important to understand that there are different motorcycle insurance policies and coverage options to consider when buying the right policy for your motorcycle.

By choosing the right policy, you can enjoy comprehensive protection while saving money in the long run.

What motorcycle insurance covers

 A motorbike insurance policy pays for the damage done to your bike and any injuries you or other drivers sustain during an accident. Coverage needed depends on the insurer, so you should compare motorcycle insurance before settling on one. Other factors that influence coverage include the type of bike you ride, how often you use it, and whether you have dependents. Once you choose your plan, read through each section carefully to find any exclusions that may apply.

 What are the types of motorcycle insurance?

 Three motorcycle insurance types exist, namely:

• Third-party liability insurance covers the cost of damages to third parties in the event of an accident. This is compulsory for all owners and riders of motorcycles in Singapore.

• Third-party fire and theft insurance protects you against losses caused by fire, explosion, or theft. It also covers losses from accidents where you’re proven to be at fault.

• Comprehensive coverage for motorcycle insurance protects you from all the possible scenarios, including accidents, theft, fire, vandalism, and natural disasters such as thunderstorms.

How to choose the best motorcycle insurance in Singapore

 There are various ways to choose motorcycle insurance in Singapore, including:

 Consider the excess fee

 An excess fee is the amount of money you’re required to pay before your insurer covers all the claim costs. The insurance provider determines this amount when you sign up, and they rarely change it unless you make changes to your policy. Excess fees are usually between $100 and $300, but they can be as high as $1,000 or more, depending on your insurer.

 Check if your insurer offers no claim discount

 If you’re a careful driver and have zero traffic violation tickets, you may be eligible for a no-claim discount. This protects you from paying the excess fee when making a claim. This can help reduce your overall cost of insurance.

However, some things could make you lose your no claim discount, and they include when you:

• make a claim

• cancel your policy (before or after the expiry)

• make any changes to your policy, including changing motorcycles

 Check the flexibility of your policy

 Check to see that the policy allows you to do the following:

• Add on riders. This could help you enhance your coverage but will typically cost more.

 • Change the sum insured. If your motorcycle changes in value, it’s a good idea to be able to quickly update your policy.

 • Choose the excess. The excess is what you have to pay out of pocket for your insurer to cover a claim—the higher the excess, the lower your premium. You should be able to alter this amount depending on whether or not you’re willing and able to absorb higher out-of-pocket costs.

 • Pay in instalments. Many people would prefer making monthly payments rather than lump-sum payments every six months or year. If you prefer paying in instalments, make sure it’s an option with your provider and chosen policy before buying.

 • Cancel any time without penalty (subject to refundable premiums paid). Few people like lock-in purchases; being unable to cancel something as important as an insurance plan can spell disaster for those who are less than well off financially or worried about their ability to maintain payments down the line!


 Comparing motorcycle insurance policies will allow you to make informed decisions about the coverage that best suits your needs. This is important as some policies may provide higher coverage at a lower cost or offer more benefits.

Do not hesitate to ask questions and find out about discounts and promotions offered by different insurers. Knowing the excess fee is also important. Some insurers might charge a higher excess fee if you were responsible for the accident, while others may have a flat rate regardless of who was responsible.

Most importantly, find out how much no-claim discount (NCD) protection you can get when you renew your policy after making a claim. Insurers typically give up to 20% NCD protection when you have made one claim in one year and up to 10% NCD after two claims in two years. However, this varies according to different insurers, so compare before buying the policy.

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