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NSW Best insurance for learner rider?

Discussion in 'Politics, Laws, Government & Insurance' started by Blizwire, Dec 11, 2014.

  1. Hi,

    I'm pretty new here, both in the motorcycle world, in Australia and on NR. Just recently moved here from Sweden. I did my pre-learner course recently and just got my L licence. I'm buying a new CB125 from the shop and I'm now browsing for an insurance.

    I've been looking around at different companies (mind you, I don't recognise any of these companies since I've only been in OZ for a few weeks) and I've been searching around on NR as well.
    However, there's one thing that I can't get my head around....

    So the bike I'm buying costs $2600. I'm looking at getting either a 3rd party insurance, theft insurance or comprehensive. They seem to be ranging from $180 (and up to $800 for the comprehensive).
    However, all of them come with a pretty hefty excess, somewhere around the $400 mark. Also, from what I've found by reading the fine print is that they all seem to have an additional excess for "inexperienced riders". These can range from an additional $400 to even as much as additional $800! Some of the companies doesn't explicitly define what that term means, but some of them define it as someone who has held their license for less than one or two years, i.e. me.
    This means that the excess would be over $1200. Plus the yearly cost of $200-800, I might as well skip the insurance and just get a brand new bike if something happens...

    Does this make any sense to you guys? Or am I just missing something?

    There must be a way to insure a cheap bike like the CB125 as a learner rider without having to pay more for the excess than the bike is actually worth, right?

    Thanks guys!

    FYI, I'm a male, 27, have had my drivers license since I was 19, just got my L's for riders. Live in Sydney.

    ps. This should probably be in the "Politics, Laws, Government & Insurance" section but due to being a newbie, I wasn't allowed to post there.
  2. Your bike is not worth anything so you would not pay $$ to cover its loss or damage. Stick with 3rd party insurance for any damage you cause to property other than your own. Due to riding inexperience, most of the insurers are going to pay a lot in excesses (basic excess plus an inexperienced drivers excess).

    An option is to call NRMA for insurance. They take your driving experience into consideration from 19 which means you will not have the inexperienced drivers excess.

    Confirm for yourself: http://www.nrma.com.au/quote-exit/motorcycle-and-scooter-insurance

    • Agree Agree x 1
  3. Don't crash, and if you can't afford the cheapest excess you can find then don't ride. Crashing into cars is expensive.
  4. Hi Smileedude. I can understand that getting 3rd party is still a good idea, since the cost of whatever property I might hit will be higher than the excess. But getting anything other than 3rd party doesn't make any sense to me, since the yearly cost + excess + additional excess is around the same price as a brand new bike... I can of course afford this, otherwise I wouldn't get the bike in the first place. I'm just trying to find a solution that actually makes sense...
    Or what do you reckon?
    What do new riders usually do?
  5. Comprehensive is for experienced riders with bikes worth over $5k. Otherwise you're a madman tossing money away. You're right, stick with 3rd party and treat the money you will lose on your bike if you crash as incentive not to crash.
    • Agree Agree x 1
  6. Yeah, Sweden! :)
    Most insurance companies have a pretty hefty excess for L-platers, unfortunately, so I agree with Justus. Get 3rd party (I think that's a minimum anyway in most states) and if you crash (and try not to, yeah?), get yourself a new bike. With the excess you'd be paying and with the bike being a 125, you probably wouldn't get much it anyway
    • Like Like x 1
  7. Best insurance is a good helmet lol...
    • Agree Agree x 1
  8. Hi Blizwire,

    Unfortunately we all had this problem. When you are an newbie, inexperienced on your L's you will be paying more in insurance, excess, 3rd party, theft etc.

    Best thing is to weigh up your options based on your income, purchase price of the bike (is it worth having comprehensive insurance or not), level of experience of riding.

    In your case based on what you have told us I would stick with 3rd Party Insurance as your bike is worth peanuts. There is no logic to have comprehensive insurance or theft cover.

    Depending on the insurer some look at your overall driving experience in yrs as a driver so for e.g NRMA will look at your driving history (clean driving record, years of having drivers licence) which will lower the risk for the insurer.

    Other insurers will only ask about your years of riding which will quickly become to expensive to insure a bike through them.

    Some of the good Insurers I used in the past are: Swann, Nrma, Insuremyride, QBE (cheap) etc

    You can reduce your premium by also paying higher excess but in your case I wouldn't advise you due to your inexperience riding bikes.

    Step 1. So Compare the insurance companies - 2. Get your 3rd party insurance (in case you smash into the vehicle such as Audi) 3. Attend Rides with the fellow NR members as you will learn heaps. 4. Ride safe.

    Hope this helps!
  9. I've got full comp on my CB500FA with Swan Insurance and they took my previous years of driving into account aswell. I pay monthly at about $50 per month
  10. Just get remember that the "minimum required" insurance in NSW is 3rd party, but this only covers injury to people, not property that you might hit.

    The minimum insurance I would consider is "3rd party property" , an additional, non compulsory insurance which will cover damage you might cause to other vehicles , bus shelters, etc. A minor collision with something shiny and expensive could otherwise cost you a fortune.

    You may find that the difference in cost between 3rd party property and full comprehensive his not great so ask for both quotes.
  11. My general rule of thumb has always been if a vehicle costs more than a months pay to replace or I cannot do without that vehicle at all then the vehicle gets full comprehensive insurance.

    If it doesn't meet either requirement then I just get 3rd party property and maybe fire/theft.

    Personally I think 3rd party property insurance should be mandatory.
    • Agree Agree x 1
  12. I found AAMI the cheapest for me with third party property and fire and theft, although I think I might have a few years on you.
  13. I comprehensively insured with swan when I was on my Ls and it was only about $15.00/month (still is) but I am a bit older so maybe that played into the price. Excess is about $300. Puncture insurance (including towing) was another $15.00/month
  14. Hi guys, thanks for all the answers. I discussed insurances with the dealer (Close Motorcycles, Sydney) and they gave me a quote for Swann. The price was 180 a year for 3rd party and 320 for full comprehensive. I first thought that comp wouldn't be worth it because of the excess and all, but this one turned out to have $400 base excess and +$250 for L, so thats $650 in the end. Even though $650 (plus yearly $320) is kind of a lot for a bike thats only $2099 brand new it still makes sense because as the dealer pointed out, with 3rd party I'm still gonna be paying the hefty excess but I won't be getting anything out of it myself. However, with full comprehensive, in case of a crash which is my fault, the $650 excess will cover both the car/property/person that I might have crashed into AND cover the price to fix my bike (or even get a new one). So basically, I'm paying about $150 extra a year which is really nothing given the fact that this one covers everything.

    Btw, Swann apparently looks at the years I've held a drivers license for calculating how long I've been a safe driver/rider, which is +5 years. This might have been a factor which reduced the price a bit as well.

    Anyway, the insurance is only $26 a month and I can always cancel it and change if I ever find anything cheaper.
    • Like Like x 1
  15. I recommend comprehensive 100%. I work as a motorcycle claims consultant for a big insurance company and believe me it pays to have comp. If you have third party we pretty much do nothing for you except take care of big bills that people put on you from accidents. If you need any advice or help just PM me :)
    • Like Like x 1
  16. I got my CB125 comprehensively insured through NRMA for $119/yr, $650 excess. The low price is mainly because I have a no claim discount from my car insurance with them. $650 is their basic excess and I think it's kinda high. But it would be staggeringly worse if I was under 25 or without driving history.
  17. Get in early while you have a cheap bike that means relatively low premiums, because the no claim benefits you can accrue will help you get lower premiums later on if you later step up to a more expensive bike.

    That's also something to take into account if you have a relatively minor prang with only damage to your bike, in that it might be better to not claim, depending on the excess + future impact on premiums of your insurance claim record.
    • Agree Agree x 1
    • Informative Informative x 1
  18. Add to that, comprehensive with NRMA covers $2k of riding gear (as an example, I'm not selling NRMA as the best of insurance). Plus as above, using the driving years help take my insurance down even though I was a newbie petrol powered rider (I've been a cyclist for years but 200W at the foot is a lot different to 9kW on tap at the wrist).