Bike Insurance - Increased Costs Force Many Motorists to Switch to Bike

A growing number of middle-aged men are now switching to sport bikes and scooters as they strive to beat soaring costs of motoring, even as many attempt to recapture their youth. The cost of petrol, taxes as well as parking is believed to be the main issue compelling motorists to ditch their four wheels in favour ofbikes. This development, reports said, has led to accidents soaring and equally pushed up the cost insurance cover, especially car insurance.

To cash in on the growing number of riders, the post office has launched its first ever bike insurance policy. The policy provides one month’s free cover and a 36 per cent discount for female riders. It also includes £500 cover for accessories, which are items fixed to thebike like radios and boxes. While it provides a new competition for insurance and an alternative for drivers, it may not be the cheapest cover around. The policy costs as much as £403 for a 51-year-old new Harley-Davidson driver.

Premiums are set according to post code, age, the type of vehicle and the driver’s experience. But the prices vary from one insurer to another and the kind of risks each is willing to take. Commenting on the rise in the number of people riding motorcycles, Norwich Union’s underwriting strategy manager Nigel Bartram said: “This is a big surge in the numbers buying smallbikes and scooters for their commute to work. This lets them save money not just on petrol but parking.

Incidentally, this rise has also led to more restrictions from insurers, as Co-operative Insurance Services, which used to be a big underwriter of bikes, now restricts cover to bikes worth less than £8,000. In some cases, insurers require policyholders who have not ridden for a while to take a new test, said AA.

news source : http://www.onlyfinance.com/