Tag Archives: Finance advice

Motorcycle News, News

Pay-as-you-ride insurance scheme

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The world’s first pay-as-you-ride insurance scheme has launched in America allowing leisure and seasonal riders and those who own more tan one motorcycle to reduce their insurance costs.

It makes a lot of sense and we hope it takes off in Australia where you have limited options to reducing your very hefty insurance premiums.

We would also like to see something similar for registration fees. After all, why should we pay full registration for a motorcycle that may sit in the garage for weeks on end?

Riders are already used to pay-as-you-go road tolls and there are several cities in the world where you pay to enter CBD zones.

There is also talk of such systems in Australia to reduce peak-hour congestion. 

So it makes sense t ave insurance and eras registration tied to distance travelled.

The pay-per-mile scheme launched in the USA by insurtech company is called VOOM.

It allows riders to accurately tailor their insurance premium to the number of kilometres (or lies in the States) that they ride.

So if you are snowed in for several months or only get out on the weekend or have several bikes, you could substantially reduce your premiums.

It will be launched first in Arizona, Illinois, Indiana, and Ohio and is underwritten by Markel American Insurance Company.

VOOM says its research shows that the risks associated with low-mileage riding can be more than 80% lower than that of high-mileage motorcycling. 

Some other products do allow riders to stall their insurance during winter months, but this is the first pay-as-you-go system in the world, the company claims.

VOOM  does not require a physical device or mobile app to track mileage or behaviour. Instead, riders simply submit a photo of their odometers every month.

Coverage is accompanied by online policy management, and varied other coverage options available to qualified riders, including liability, comprehensive, medical payments, collision, uninsured motorists, and accessory coverage. 

Source: MotorbikeWriter.com

Motorcycle News, News

‘Free’ vehicle check service offered

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A major Australian insurance company has launched a “free” check on the history of used motorcycles and other vehicles so you don’t buy a lemon.

If you are buying a used motorcycle, you should check to see if it is stolen, has money owing on it, has been written off in a crash or has been damaged in a flood or storm.

Buyers used to check the state-based REVS (Register of Encumbered Vehicles) or VSR (Vehicle Securities Register).

Since 2012, this has been nationalised in Australia under the Personal Property Security Register website which now costs $25.

There are several private websites that offer similar services, but they can be quite expensive and may offer information that is not relevant to your purchasing decision.

Be wary if you simply Google-search for “PPSR” as you will also find private suppliers.

These are only useful if you want a more in-depth report that may show things such as odometer regularities, or “clocking” where the seller winds the odd back.

‘Free’ service

Now Budget Direct insurance company has launched a “free” service.

It says it’s a “car search”, but it also works for motorcycles as Budget Direct does insure motorcycles.

This service may save you a couple of bucks, but you need to know that you have to supply your email and phone number.

After I did a search as a test, Budget Direct contacted me via email for an insurance quote.

I then tried to manually unsubscribe from their email service several times, but it kept throwing up an error.

I have not yet been contacted by phone, but I suspect that may be coming.

So while the service may be free from payment, there could be an associated hassle.

PPSR check

There are several scams that make buying a second-hand motorcycle a risk. Click here for some of the most prominent scams.

At least you can be assured with an official PPSR check that you do not end up buying a lemon, a stolen bike or one that will be repossessed by a finance company because the previous owner still owed money on it.

To make a PPSR check, you will need to supply the vehicle identification number (VIN). Never buy a vehicle from anyone unless they provide the VIN.

You can find the VIN on a registration notice or on the bike’s steering head, front frame or on the bottom of the engine.

It could be on a special plate, or stamped or etched into the frame or engine.VIN PPSR Cheap and easy check on used motorcycles

Turn the handlebars to the left and look on the right side of the frame where the steering head goes through the frame.

In a car, a VIN could be in a number of different places: Wheel arches, dashboard, boot, under the spare tyre, doors, door frames, and in the engine bay.

PPSR can also be accessed for various other personal property such as cars, boats, caravans, pant, machinery, shares and even works of art.

You can also search non-material items such as accounts, intellectual property, investment instruments, or licences.

Source: MotorbikeWriter.com

Motorcycle News, News

Finance tips for your next motorcycle

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If you can afford to pay cash for your next motorcycle, that’s great, but if you need finance, there are a few things you should have done first before falling in love with a bike on the showroom floor.

TYPE OF LOANS

Thankfully financing a bike is a lot easier than financing your house or even your car. Leases and mortgages are rare in the motorcycle industry, so you are probably only dealing with a personal loan, hire purchase or a secured loan. They are all pretty much the same thing with only slight differences and it may depend on where you get the money.

You can get your finance through a bank, financial service such as a broker, loan specialist, credit union or building society, or through the motorcycle company or dealership network. Most motorcycle companies and dealer networks these days offer finance as part of their service. Yamaha Moto Finance (YMF) is factory-owned while most others have a financial services business underwritten by a finance company or bank.

But before you head to the showroom you should check with your bank, credit union or building society to see if they will lend you money for a motorcycle. Some of these institutions are pretty conservative and they may look upon a loan for a motorcycle as a luxury item and risky, which could affect their likelihood to grant you the loan. And because of the risk, they may insist on loan protection insurance to secure the loan.

BUDGET

Finance seems to make anything affordable and it is easy to over-extend yourself by buying the “up-spec” model when the standard would suit your needs. RACQ spokesman Steve Spalding suggests setting a budget and sticking to it. “Don’t be pressured to accept a finance offer you are not comfortable with,” he says.

Steve also recommends you look beyond the immediate cost of the bike. “Fully consider the full range of ownership costs before committing to a purchase,” he says. That means factoring in financial costs such as depreciation, registration and insurance; running costs such as fuel, tyres and servicing; as well as rider gear.

Steve Spalding RACQ voidSteve Spalding RACQ

RATES

Do your homework on interest rates charged by the various banks and financial services offering loans. Even a decimal point difference in interest rates can end up changing the final repayment amount by hundreds of dollars.

The good news is that rates are low at the moment and there isn’t a lot of difference between the lenders. But there can be hidden costs, fees and mandatory insurance that is included in the financial package, so do your homework carefully. 

You should also do your homework on the value of the new or used bike you are interested in buying. It will help you decide whether the finance deal is reasonable.

LOAN PERIOD

If your financial institution is prepared to grant you the loan, you also need to work out how long you want your loan period. A short period will attract higher interest rates and, of course, higher repayments, while a longer period will have a lower interest rate and lower repayments. However, you should also ask to see the final cost of the loan at the end of the loan contract. The longer loan will usually cost you more. In fact, you may be surprised just how much the loan will end up costing you.

Also, remember that the average period of motorcycle ownership is five years, so you don’t want a loan period beyond that. In fact, you may be the sort of person who likes to change your bike every two or three years and trying to sell or trade in a bike that is still covered by finance can be difficult. Not impossible, but difficult. So consider how long you will own the bike and tailor your loan to suit.

If you are a novice rider and are restricted to a LAMS bike, you should keep the loan even shorter as you are more likely to want to trade up as soon as you graduate to an open licence.

Your loan contract may also offer you the opportunity to make repayments in weekly or monthly instalments. It may be easier to pay monthly, but it is usually cheaper in the long term to pay more frequently. Check the final costs of each type of repayment scheme before committing.

PENALTIES

Your personal and financial circumstances could change in the next few years and you may need to amend your repayments schedule. For example, you may get a big pay rise or promotion and want to pay off your bike sooner. On the other hand, you could lose your job or work contract and need to lengthen your loan so your repayments are reduced. Check your loan contract to see if there is leeway to lengthen or shorten repayments. If there is, ask if there are any penalty fees for changing the repayments.

CASHsell buy test ride demo motorcycle sales showroom selling motorcycles dive

One of the advantages of securing finance before you go to the motorcycle dealership is that you will have a sum of money guaranteed and you can go shopping for the best deal as if you have cash burning in your pocket. Sales staff love to do deals on cash and you could successfully haggle a few hundred dollars off the price or get free services or accessories thrown in to sweeten the deal.

Also, if you have a guaranteed loan, you can use the cash to buy from a private owner, rather than a dealership. While there are often price advantages in private sales, there are also greater risks and issues you should consider such as whether the bike is still under finance, who is the rightful owner, the lack of guarantees, etc.

BROKERS

It is a hassle running around the banks and financial institutions trying to work out how much money you want to spend and organising a loan. There are now several online brokers who specialise in motorcycles such as Aussie Bike Loans. You can ring them or apply online. Usually you have to supply a lot of personal information which can be a bit risky these days with identity fraud running rampant. Make sure they are a reputable firm and if you are still worried, make a phone call where you can better handle the supply of personal information than via an online form.

Brokers will do the scouting for you to find the best deal to suit your personal and financial circumstances. However, they charge a commission to the supplier of the finance which is added to your own contract.

CORPORATE AND DEALER FINANCE

Most motorcycle companies have a financial services arm. It may be a wholly owned like YMF, or it may be underwritten by an existing financial institution.

Others offer finance at their dealerships, independent of corporate ownership or partnership.

One-make dealers often offer financial services through the motorcycle company’s financial institution or its third-party partner, while some multi-franchise dealers have their own arrangements with financial institutions.

Getting a loan through your dealer, whether it’s the motorcycle company finance company or their own, makes the whole motorcycle shopping business very easy and convenient. Dealers these days are like a one-stop shop. Once you’ve decided on the bike, they can arrange finance, as well as insurance and all the other legal paperwork that seems to take ages and delay you from that golden moment when you throw your leg over your dream machine.

Some dealers can even take some of the immediate financial pain out of running your bike by including some services, accessories and maybe even rider gear in your financial package. However, remember that you will end up paying more in the long run, so be careful what you include in the loan.

Another advantage of corporate or dealer finance is that they can look at the life of the vehicle and maybe even offer you a guaranteed buy-back price at the end of your loan so you can trade up to a newer model.

Harley-Davidson Financial Services offer a guaranteed buy-back system that takes the financial guesswork out of owning a bike.

Luxury car brands have been doing this for years to build brand loyalty and it is starting to filter through to the motorcycle industry, especially luxury brands such as BMW and top-end models.

However, you should read the fine print on these deals because they load up the final price of the bike and there are usually a lot of conditions. They can include a limit on the number of kilometres you can rack up on your odometer, the accessories you add, modifications, servicing by an approved dealer and, of course, the trade-in condition of your bike.Motorcycle dealership sale accessories jeans helmets jackets

BMW’s Full Circle Guaranteed Future Value not only offers variable periods from two to four years, but three options at the end of loan term: Sell or trade the bike and take any profit over and above the GFV; hand back the bike and avoid any losses; or refinance and continue ownership.

Some customers may be concerned that it locks them into buying from that dealer and maybe locks them into buying a certain brand. It’s great if you have loyalty to a particular marque, but not if you want to try different brands.

It could also cost more to finance a bike with a guaranteed buy-back price and you could be risking the whole deal if you damage your bike, even slightly.

Some motorcycle companies see these schemes as a way to develop a long-term partnership with their customers. Meanwhile, customers can view it as an essential service that gives them peace of mind.

ATTRACTIVE RATES

Another point about corporate or dealer finance that you should be aware of is the attractive rates. Dealer finance can sometimes offer finance at low or even zero interest. That is a sales tool that the banks and financial institutions can’t equal because they have to make money on the interest they charge you. The motorcycle manufacturers or  dealers, however, can offer low interest rates because they have control over the final price of the motorcycle. A zero percent loan may look attractive, but you may also pay more for the bike in the long run. Sometimes it’s a genuine low interest rate used as an attractive incentive to push surplus stock, but you should do your sums to work out if the final price really is cheaper or more expensive.

NEW AND USED

While some financial institutions will only offer finance on new bikes, dealers may also offer loans on approved used bikes. Harley-Davidson Financial Services is one such company that offers conventional hire purchase loans on approved genuine pre-owned vehicles. The bikes must come from official Harley dealerships, be Australian compliant, have less than 50,000km on the odo and be under five years old. The advantage is the Harleys also come with a one-year warranty and one-year roadside assistance.

FINAL WARNING

Despite all the homework, you may still blunder your way into a loan that rips you off, or where the contractor fails to fulfil their end of the deal, or where your circumstances change. In the worst case scenario the company could repossess your prized possession!

Before it gets to that stage, if you have a dispute over your loan or insurance, complain to the supplier first as all reputable firms have a complaints department. If you are still not happy, don’t rush off to your solicitor as that can end up costing you a fortune. Instead, go to the Financial Ombudsman Service who offer a free service.

Source: MotorbikeWriter.com

Motorcycle News, News

Why You Shouldn’t Cancel Motorcycle Insurance During Winter

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By Cyndy Lane: Traveler, Blogger, Writer, Loves to write about personal travel experiences

If you are the proud owner and rider of a motorcycle, you will know how important it is to have insurance coverage in place. Insurance provides protection against a range of incidents such as accidents, theft, fire, damage, and third-party liability in the event of an accident. There are various different levels of motorcycle insurance you can consider, so you should be able to find the ideal one for your needs.

Once you have your cover in place, you can look forward to peace of mind and protection when you hit the road on your motorcycle during the summer. Of course, in the winter, the roads are often not safe enough depending on where you live, so you may decide to store your bike during the winter months and use other methods of transportation. If you do this, you may also be tempted to cancel your insurance cover during the months you are not using the motorcycle, but this could prove to be a mistake. In this article, we will look at some of the key reasons why you should keep your motorcycle insurance active, even during the winter when you are not riding it.

What Are the Reasons?

We all want to save money where we can, which is why some riders decide to cancel their motorcycle insurance when they are not actually riding their motorbike for an extended period. However, there are various reasons why you should think twice before you do this. Some of these include:

You May Face Fees and Penalties

When you take out insurance coverage, it is designed to cover you for the period of one year, at which point you can renew or go elsewhere for coverage. However, if you decide to cancel partway through the year because you will not be using your motorcycle, you could face penalties and early termination fees, and these can be very costly. So, it is well worth considering whether you will be better off keeping the coverage in place rather than being hit with huge financial penalties.

You Will Lose Valuable Protection

As we know, insurance coverage protects us in the event of damage or injuries caused during accidents while on the road. However, it also covers you for problems that could occur when you are not on the road such as the theft of your motorcycle or fire damage. If you cancel your insurance cover, you will lose this protection. So, if something happens to your motorcycle during the months you are not riding it, you will have no protective cover in place.

You Will Be Unable to Ride Your Bike

While you may think that you will not ride your motorcycle at all during the winter months, you never know when the odd day of decent weather might come along. If and when this does happen, you may want to take to the road on your motorcycle. However, if you have cancelled your insurance cover, you won’t be able to do this. So, it is worth keeping your insurance cover active so that you can still ride your motorcycle in winter if you are able to.

What Can You Do?

So, what can you do in order to continue to enjoy protection? Well, it is worth noting that there are some insurance providers that offer lay-up insurance plans. These plans make things far easier for you, as you can benefit from reduced costs when your motorcycle is not being used for an extended period but you will still be protected when it comes to things such as fire damage or theft of your bike. So, you can look forward to continued insurance cover even if you will not be riding your bike and do not need liability coverage. There are also some lay-up policies that do allow for occasional riding of your bike, such as when the weather take a turn for the better. You can go online to get a competitive motorcycle insurance quote, which will make it easier for find cover that fits in with your budget.

If you want to enjoy continued protection rather than cancelling your insurance plan altogether during winter, it is well worth checking with your provider – or another provider – whether they offer this type of plan. This is something that will provide you with much greater flexibility when it comes to your insurance coverage and means that you are not left completely unprotected during the winter.

Motorcycles do not come cheap, and the last thing you want is for your expensive dream machine to be at risk. By making sure you keep some level of cover in place during the winter months, you get to benefit from far greater peace of mind as well as valuable protection. 

Source: MotorbikeWriter.com

Motorcycle News, News

Ponder on these before purchasing your ride

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(Contributed post)

Although not all are motor freaks, having a ride for oneself is almost everyone’s dream. The beauty that lay in your garage can take you on through the roadblocks of your daily life and also to the unexplored places beyond the pines. While some are motor geeks, some aren’t; but the need for a ride is not limited just to the geeks. With the world spread out into those sporadic, picturesque, serene fields and frequently occurring luminous streets, it is always best to have your hands over a handlebar that could wriggle you through the paths to your destination.

Coming to the aspect of purchasing a ride for yourself, not everyone will have a clear idea of what all to cover while considering a purchase. To all amateurs, the glossy, rugged profiles and façade would be the factors that hook them the most to the vehicles. But the performance depends on many other factors that lay within what you see. Your decisions shouldn’t be later looked upon with remorse for the low-performance and risks that your ride poses. Beginner, amateur, geek or professional, it always matters what you own for its quality; so, make sure to get hold of the best rides available within the market then, with proper knowledge and guidance through the features and also the cost (affordable or not) of the vehicle that you are about to own. Read this article at MarketReview.com to know about the requirements to apply for a vehicle loan and much more, so that when you decide on a vehicle nothing stops you from owning it.

Factors to be considered before deciding on buying a bike

  • Understand your ability

What counts the most in the riding of a bike is the experience that you possess. The ability to handle a bike and maneuver it with ease is of paramount importance before even thinking of buying it. Not everyone will be equally skillful to handle it with ease, the driving skills and experience matter a lot when narrowing down to a particular vehicle on your list. The ones who are well-experienced could go for powerful bikes, whereas for the novices it would be better to pick the less powerful ones (with fewer sports bike like features) and the ones that are meant for beginners that wouldn’t be too risky when used.

  • The terrains that the vehicle has to negotiate

Vehicles are made for particular purposes or are made ideal for certain roads. Before hitting the road, you should always make it a point to look into the features of the vehicle, that whether it meets the standards of the ones that could be driven through these roads or not. Vehicles are built with features that are to render your riding experience, the best. Consider the terrain factor also which every vehicle needs to cover with the rotating wheels; which if not ideal for the vehicle and the experience of the rider could make the vehicle run amok.

  • Body of the bike

This is one factor that every rider irrespective of their experience or ability checks out even when not having a plan to buy a ride. Every ride carries a certain charm which we savor even when it just passes by us. The power of looks is a whole another thing, with some carrying the most alluring aesthetic features which is hard to overlook.motorcycle loan

The beauty of your ride matters a lot, along with the body’s built-quality and durability and all the personal needs like color and certain customizations too. There are various types of bikes differing in its built-quality and body style, that make it suitable for particular roads and speeds. Sports bikes, Cruisers, Street Riders, Tourers and Dirt bikes are the various types that vroom around on the roads.

  • Power of the engine

This factor takes you for the ride, with the engine’s displacement and power. Power is not everything for a bike ride, because it is not always what a rider prefers, it could also be the fuel efficiency. So, when power increases, fuel efficiency reduces and vice-versa. It solely depends on your preference of qualities, to the bike that you must finally book. The beast that the machine is within is what matters the most, be it, either way, you have to check into these details to know what suits you best.

  • Ride quality and usage factors

The ride quality matters with the shock absorbance feature that the machine offers along with the smoothness with which it tackles the roadblocks and bad roads. All these could be checked with a test drive that you are rightfully offered; along with those factors while testing one should check with the technical and practical issues it has (if any) when used and also you have to look into the matter closely by analyzing the performance and see if it is suitable for your use, with the frequency that you are planning to use it.

  • Parts of the vehicle and rider’s body proportions

You should always make it a point to check the availability of the parts and accessories to your bike with its service facilities and expenses. The rider’s body proportions should also be fit for the proportions of the bike; so, when testing it check the proportions of the bike with your body by sitting in the sweet spot and see if it suits you.

  • New or used

Some people would prefer to down their expenses by going for a used bike, while some would prefer the sleek new ones. It depends on personal interests, but when it comes to the aspect of experience this factor of the bike’s age also matters. It would be best for the inexperienced riders to initially ride the used ones so that even if some form of damage is brought on the vehicle, the rider doesn’t have to pay it off with a huge bomb. While experienced riders could easily go for a new one if they are confident enough to take it for the long-term budget that it incurs.

One factor that is not considered above is the factor of cost or budget, which is completely dependent on a person’s financial stability and everyone will have a clear idea of their status and needs, so decide after quite some deliberation considering also the expenses that would follow the initial one. Ride your dream by incorporating the practicalities to it as well, so that your dream does not leave you stranded on the road.

               

Source: MotorbikeWriter.com

Motorcycle News, News

World’s ‘biggest’ motorcycle crash payout

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A North Carolina Harley rider has been awarded $US4m (almost $A6m) after a crash with a driver who failed to yield right-of-way in what is believed to be the world’s biggest motorcycle crash payout.

The 29-year-old rider was travelling about 15mph (about 24km/h) when he was struck by a vehicle that accelerated away from a stop sign without seeing the motorcycle.

America is renowned for its excessive compensation payouts, mainly due to high medical costs.

According to a study by US Jury Verdict Research, the average motorcycle accident verdict is about $A560,000 and the median verdict award just over $US70,000.

Crash payoutRoad safety crash accident motorcycle scam payout

In Australia, payouts for motor vehicle crashes are a lot less and rarely over $1m.

In July this year, NSW lawyers Gerard Malouf and Partners secured a personal injury about of $800,000 for a motorcycle rider after a crash.

The claim not only included rider’s injuries, but also the pain and suffering of his family.

In the North Carolina case, Attorney Mark Jetton of Jetton & Meredith lawyers claimed for physical injuries, medical expenses and lost wages.

The young rider needed to be airlifted to hospital where he spent six days and now requires on-going therapy and medication.

Compensation claims

Compensation can be determined by a number of factors, such as physical and mental injuries, the rider’s age, hospital expenses, on-going medical costs, pain and suffering, motorcycle damage and loss of earnings.

Big payouts are rare in Australia and vary from state to state based on third-party insurance regulations.

Riders should ensure they have adequate insurance cover and seek professional legal aid after a crash.

Click here for tips on what to do after a minor crash.

Source: MotorbikeWriter.com

Motorcycle News, News

Should you leave a deposit on a motorbike?

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There can be several reasons for leaving a deposit on a motorcycle.

The most common reason is to secure it from being bought by someone else while you sort out your finances.

You may also want to put a deposit on limited-edition bikes to secure one or to get a special model made at the factory to your specifications.

Also, with some new models released several long months before being available in Australia (such as the Suzuki Katana and Indian FTR 1200) distributors take deposits to secure customers while they are still enthusiastic.

However, there are deposit pitfalls for the unwary customer.

Deposit advice

Retired and honoured motorcycle industry veteran Stuart Strickland says deposits can be a  complex issue if the buyer has not negotiated a full refund around specified criteria.

“Buyers should never leave deposits without a written guarantee from the dealer on delivery date which if not met, full deposit is returned,” he says.

“Dealers can retain deposits or part thereof if they can prove they specially ordered a unit in for the customer that they normally wouldn’t stock.” 

Dealer sale

If you are buying from a dealer, you should be guaranteed of security, but read the small print of the document you sign.

There may be conditions or a processing fee involved if you change your mind, so you won’t get the full deposit back.

Suzuki Katana is a rider’s delight
Suzuki Katana

For example, Suzuki Motorcycles Australia took $1000 deposits online for the new Katana. 

If you changed your mind in the nine months from when it was unveiled to when it became available for sale last week, you only get $450 back as Suzuki charged $500 processing fees, plus 10% GST.

Suzuki Motorcycle Australia marketing manager Lewis Croft says they were the first in the world to offer the online deposit system and may do it more often as it had been a success.

Indian Motorcycle Australia also took $1000 deposits on the FTR 1200 because of the long delay between the unveiling and recent availability in Australia and New Zealand.

Spokesman Christopher Gales says they only had one customer change their mind.

“In general we always give deposits back. It doesn’t do anyone good to hold a deposit of a customer,” he says.

Indian FTR 1200 deposit
Indian FTR 1200

Private sale

If you are buying a second-hand bike through a private buyer, before pay.ing a deposit you should check the credentials of the bike with a REVS search.

It will ensure the bike has not been written off, stolen, still under finance, etc.

You should also do some checks on the seller.

We suggest visiting them at their house. Get a copy of their licence and ensure the address matches.

Also, have an independent third-party witness the written transaction and maybe also record the deal with a photo or video.

If you decide to leave a holding deposit, you can use an escrow account such as Protecti which holds the money until both sides are happy with the transaction. However, fees are involved.

Bikes advertised through major online sites usually offer sellers and customers some protection. Check the website’s conditions of sale which may include a complaints section.

Source: MotorbikeWriter.com

Motorcycle News, News

6 Motorcycle Insurance Terms You Must Know Before You Claim

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(Contributed post for our Indian readers)

Buying a motorcycle is a life goal that each one of us wishes to achieve one day. For many, it may mean months of saving money and a loan on top of their heads. Whether you already own a motorcycle or not, it can be a costly investment and protecting it from any harm is paramount. The only way you can keep your bike safe from any physical damage and yourself from a financial dent is by getting it insured.

For Indians, not buying an insurance policy for their motorcycle isn’t an option. As per law, every motor vehicle plying on Indian roads should have valid motor insurance. As you set off on the mission to choose the best insurance for your motorcycle, you may get confused with the immense variety of policies available with different providers. To add to your woes, you’ll come across a lot of technical jargons and terminology which may make no sense to you.

In order to choose the right policy, you need to be aware of some of the motorcycle insurance terms which may help you save money on your premiums. You don’t have to go anywhere. We have simplified some of the most important motor insurance terms that will help you make a sound decision while buying an insurance policy.

1. Insured Declared Value (IDV)

The most common motor insurance term is Insured Declared Value or IDV. It refers to the current market price of the motorcycle to be insured. It is the maximum amount that you can expect to get from your insurance provider in case of a total damage claim. The total damage refers to the situation in which your bike has been stolen or damaged beyond repair. The age of your motorcycle helps to estimate its current IDV. If you deduct your bike’s depreciation due to age from the current selling price of your motorcycle by the manufacturer, you get your IDV.

It is important for you to understand the concept of IDV since it is directly proportional to the premium you pay. More the IDV amount, more the premium you pay. However, if you quote a lesser IDV amount than the actual current price, you might end up paying more than you should be in case your motorcycle is damaged/ stolen.

2. Own Damage Premium

At the time of buying motor insurance, you will often come across the term ‘Own Damage Premium’. Well, own damage premium is a part of your total insurance premium that covers your motorbike against any damage caused by factors beyond your control. Such factors may include natural calamities like earthquakes, floods, cyclone, etc along with manmade disasters like fire, bomb explosions, etc. Therefore, own damage premium is the part of your premium amount that you pay to ensure that your bike is covered against damage caused by natural calamities as well as manmade disasters.

Opting for Own Damage Premium helps you to obtain motor insurance cover equal to the Insured Declared Value. The own damage premium amount is estimated on the basis of your bike’s IDV, model, cubic capacity, etc along with the geographical location where you reside.

3. Third Party Liability Cover

An insurance policy also provides coverage to the damages caused to a third party if the insured is the at-fault driver. Third party liability coverage provides protection against any legal/ financial liability that may arise if you cause death/ injury or damage to another person or property while driving. Your insurance provider will compensate for the third party’s financial loss on your behalf. In India, third party liability cover is a compulsory coverage for all motorcycle owners under their motor insurance policy by law.

4. Personal Accident Cover

Besides the insured bike and the third party, an accident may also cause serious injuries to the insured person. In several cases, the accident can be fatal or may lead to permanent disability. As per the National Crime Records Bureau, 16 people die of roads accidents every hour and in 2013, more than 1,37,000 people were killed in road accidents. In such unforeseen incidents, personal accident cover of your motor insurance offers financial protection to the insured or his family by providing compensation. Since it is an additional rider benefit, opting for a personal accident cover will increase your insurance premium.

5. Zero Depreciation Cover

All motor insurance policies account for depreciation of replaced parts while estimating the sum insured amount. Zero depreciation cover is an add-on feature that can help you obtain a higher sum insured by eliminating deductions against the depreciation of replaced parts. However, zero depreciation cover attracts higher insurance premiums. Nonetheless, it is advisable to opt for zero depreciation cover as it can be availed only during the first few claims of your motor insurance policies.

6. No Claim Bonus (NCB)

Another important motor insurance term you may come across is No Claim Bonus (NCB). No claim bonus is a bonus discount that you receive if you don’t make any claim in the previous policy year. It is a discount that you get on your renewal premium for every claim-free year. The best part is that NCB is cumulative and can increase up to 50% if no claim is made. Thus, you can save a lot of money on your renewal premium with no claim bonus. Moreover, it can also be transferred to a different provider if you change your insurance company during policy renewal.

Conclusion

So there you go. Now that you know some of the most common and crucial motor insurance terms, you can choose the coverage extent and the premium amount of your choice. You can choose motor insurance wisely as you know what are you paying for and where can you save money.

Source: MotorbikeWriter.com

Motorcycle News, News

Most Common Month to Buy Motorcycle Insurance

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Over the course of a given year, more than a million UK riders elect to insure their bikes. A survey by Devitt Insurance revealed that, for most of the year, renewals are in steady decline, punctuated by an abrupt threefold rise in March, from 4.4% of respondents to just over 13.5%.

Now, we should state at the outset that, beyond these extremes, the spread is fairly even, with each month enjoying a healthy fraction of overall renewals. Still, we’re left with the question: what’s driving this trend?

What’s so great about March?

The most obvious influence is financial. After Christmas has been sorted, we all have a little more disposable income to draw upon. And thus, it’s unsurprising that many of choose to treat ourselves to a bike and the accompanying insurance. This one-time decision might then tick over year-upon-year, making many of us March-renewers for life.

Price, according to the survey, is the most popular factor when making the decision to purchase at 40.72%. It’s closely followed by the benefits of the cover in question (39.83%). Given that the latter remains roughly constant throughout the year, it can’t explain the change from month to month. 

The reputation of the company in question was most important only to 12.5% of respondents. Only three out of 1,908 people think that a free gift is the most important thing, which, in case you’re wondering, makes these people statistically fewer than those who believe that the earth is flat. 

March is also among the cheapest months to renew. The most expensive is December – and by quite some distance. Providers are aiming to wind-down for the Christmas period. There are fewer call centres available, and a lot more IT work to do. To cover their costs, insurers respond by temporarily raising prices. These forces are at work just as much in the world of motorcycle insurance as they are in that of car insurance.

So, when the Christmas period is finally done with and the administrative slack has been addressed, things return to normal – and prices fall.

What about the cold?

We should also consider the change in the weather. While the roads are all icy, we’re not likely to want to hop into the saddle. Motorcyclists are more vulnerable to the cold than other road users, as we lack the luxury of a heating system. 

But this isn’t just about comfort. Motorcyclists are more likely to be involved in road accidents than other users. Wintry conditions – like icy roads and fewer daylight hours – contribute to this likelihood. Now, we should say that with the proper precautions and experience it’s perfectly possible to ride a bike safely during winter – but most bikers are aware of the increased risks, and thus less keen to renew and start riding again. 

Source: MotorbikeWriter.com

Motorcycle News, News

How to Get a Motorcycle Loan and Avoid the Stress

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How to Get a Motorcycle Loan and Avoid the Stress: This contributed guide will help you secure a loan for your new motorcycle.

Riding a motorcycle seems fun and adventurous, but it’s harder than most people think. For those thinking about buying a motorcycle, consider taking lessons first.

There is a population of people that only drive motorcycles. These diehard riders belong to bike clubs and can tell you everything you need to know about motorbikes.

If you are considering purchasing a motorcycle you may be wondering how to get a motorcycle loan. It is true that most lenders view these types of loans differently than a standard auto loan.

Before moving forward with the purchase, be sure that it’s an endeavor you want to get into. Owning a motorcycle comes with different pros and cons than owning a car. Are you going to use your motorcycle as a recreational vehicle, or are you ditching your automobile?

Considering a motorcycle? Keep reading for tips on how to get a motorcycle loan.

Motorcycle Loan vs. Auto Loan

A motorcycle loan is similar to an auto loan in that they are both considered collateral loans. This means that the bike secures the loan. If you fail to pay the loan according to its terms the lender can repossess the bike to recoup their loss.

Where the types of loans differ is the interest rates on a motorcycle will be higher than a car loan. You can also expect to pay more for insurance.

To get around the higher interest rates, you may want to consider getting a personal loan and paying cash for the purchase. This way you can save in the long run on interest. Your insurance rates will also be lower if you own the title to the bike.

Another thing to keep in mind is that some lenders will not issue a loan of dirt bikes or All-Terrain Vehicles (ATV). You may also find that there are certain motorcycles that lenders won’t fund. 

Before you get your heart set on a particular bike, do your research to ensure you will be able to secure the needed funding and insurance.

How to get a Motorcycle Loan with Your Credit Score?

Applying for credit can negatively impact your credit score. Before researching lenders, perform a credit check-up. Depending on your current rating, you may have to put off making a large purchase.

Consumers can receive a free annual credit report from each of the three major bureaus. Request your report and attend to any outstanding debts that are dragging down your FICO score. 

How Your Credit Score Impacts The Loan

If your score is below 700, expect to pay a higher interest rate. Scores below 600 could prevent you from getting a loan. A lender willing to take a chance on someone with bad credit will have terms that will significantly impact the cost of buying your motorcycle.

Going with a subprime lender isn’t a bad thing for those with not so perfect credit. It is an opportunity to help you rebuild your score.

Determine How Much Money You Can Afford to Borrow

A lender will tell you an amount you’re eligible to borrow. This doesn’t mean you can afford to finance that amount. The motorcycle of your dreams may be out of your price range at this time.

Looking at older models of the bike you want is an option to get within your price range. As your finances improve, trade it in for the newer version you want.

When getting a motorcycle loan, you also want to consider the cost of insurance, annual registration fees, and maintenance costs. Determine the annual cost and divide over 12 months. Add this amount to the monthly payment on your loan to see the true cost of buying the motorcycle.

Types of Motorcycle Loans

When it comes to financing your motorcycle there are a few routes you can take. These options range from loans for those with perfect credit to bad credit motorcycle loans.

Dealership Loans

Dealership loans are financing offered by the dealership selling the motorcycle. These loans are usually reserved for buyers with perfect or near perfect credit. Some dealerships will work with people with less than perfect credit to secure loans.

A dealership often requires a down payment or trade-in as part of the loan requirements.

Operator Equipment Manufacturing Loans 

OEM loans are like dealership loans. They are specific to the manufacturer of the motorcycle. These loans are incentive based for the dealer to put an extra emphasis on selling that line.

You may have more room to negotiate when buying from a dealership offering multiple brands. 

Secure a Personal Loan

Personal loans can be either secured and unsecured. These loans can be used for any purpose and often come with longer repayment terms.

When using money from an unsecured personal loan to buy a motorcycle you own the bike with a free and clear title. When taking out a secured loan you will need collateral. The collateral does not have to be the motorcycle.

Use a Credit Card

It is possible to find a good motorcycle for a few thousand dollars. In this case, you can buy the motorcycle with the available balance on a credit card. 

Credit cards are a line of credit that is easily accessible. Depending on your interest rate it’s a better option. Plus, there are no time frames for repayment. You pay your monthly minimum or a higher amount as you choose.

Keep in mind, the longer it takes to pay off the purchase, the more interest you will pay in the long run.

It’s Time to Go Shopping

There is a lot to think about when making any major purchase. Knowing your options on how to get a motorcycle loan is half the journey. Finding the bike you want is the other half. 

If you’re considering the purchase of a motorcycle, learn more about what’s popular in bike sales, check out the rest of this website. 

 (Sponsored post)

Source: MotorbikeWriter.com