Lifestyle
How much is motorcycle insurance in Australia?
The cost of motorcycle insurance in Australia depends on a range of factors, from the model of your bike to your riding history. In this guide, we break down what affects your premium and the types of cover available.
Factors that impact the cost of motorcycle insurance
Your motorcycle insurance premium is based on your overall risk profile. Here are the main factors insurers consider when calculating your motorcycle insurance cost.
Your age and riding experience
Younger and less experienced riders are statistically more likely to be involved in accidents, which can lead to higher premiums. Riders with a full, open licence and several years of riding history often benefit from lower insurance costs.
Riding history
Your claims history and driving record matter. Previous insurance claims, at-fault accidents, or traffic offences (such as speeding or reckless riding) can increase your premium. So, maintaining a clean record can help keep costs down.
Motorcycle type
High-performance and sports models, as well as motorcycles with larger engine capacities or modifications, typically cost more to insure due to higher repair and replacement costs. Alternatively, touring or commuter bikes are often cheaper to insure.
Motorcycle value
The market or agreed value of your motorcycle directly impacts your premium. More expensive bikes generally cost more to insure because they’re more costly to repair or replace.
Where you live
Your postcode can affect your premium. Areas with higher rates of theft, vandalism, or accidents can lead to higher insurance premiums compared to regional or lower-risk areas.
How the motorcycle is used
Frequent use, especially commuting in busy traffic, can increase risk compared to occasional recreational riding. Your estimated annual kilometres travelled can also influence your premium.
Where the motorcycle is parked overnight
Keeping your motorcycle in a locked garage or secure parking spot can reduce the risk of theft and may lower your premium. Whereas parking on the street or in unsecured areas can increase it.
Your selected excess
Your excess is the amount you agree to pay if you make a claim. Choosing a higher excess generally lowers your premium, while a lower excess can increase it.
Insurance cover type
The cost of motorcycle insurance also varies based on the level of cover you choose. Comprehensive motorcycle insurance generally costs more because it covers damage to your own bike, while third party policies are cheaper but offer more limited protection.
Is motorcycle insurance mandatory in Australia?
Motorcycle insurance isn’t compulsory. However, Compulsory Third Party (CTP) insurance is required by law in Australia. CTP covers injuries to other people if you’re involved in an accident.
You can also choose additional motorcycle insurance, such as comprehensive motorcycle insurance, if you want to cover damage to other people’s property or your own bike.
While only CTP is legally required, many riders take out extra cover for peace of mind.
What GIO Motorcycle Insurance covers
GIO offers three levels of motorcycle insurance, so you can choose what suits your bike and lifestyle.
1. Third Party Property Damage
- Covers damage you cause to other people’s vehicles or property.
- Includes legal liability up to $20 million.
2. Fire, Theft and Third Party Property Damage
- Includes third party property damage cover.
- Covers your bike if it’s stolen or damaged by fire.
3. Comprehensive Insurance
- Covers accidental damage to your bike, even if you’re at fault.
- Covers theft, fire, vandalism and damage by uninsured drivers.
Comprehensive insurance may also include features such as choice of repairer, a lifetime repair guarantee on authorised repairs, and new-for-old bike replacement for eligible newer bikes.
Is comprehensive motorcycle insurance worth it?
Comprehensive motorcycle insurance may be worth considering if you:
- own a new or high-value motorcycle
- rely on your bike for daily transport
- want protection against accidents, theft, and accidental damage, or
- would struggle to cover repair or replacement costs yourself.
GIO Comprehensive Motorcycle Insurance offers the highest level of protection, including cover for damage to your own bike.
Read more:
- How to increase rider safety with a motorcycle safety checklist
- What to do when buying a used car
- Preparing for an outback roadtrip
Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Read the Product Disclosure Statement before buying this insurance. The Target Market Determination is also available.This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
