Is Motorcycle Insurance Necessary? Here’s What To Know

21 Dec Is Motorcycle Insurance Necessary? Here’s What To Know

Motorcycle riding offers a sense of freedom and adventure that’s hard to beat. But along with the thrill of the open road comes a responsibility to protect yourself and others. That’s where motorcycle insurance comes in. Explore the ins and outs of motorcycle insurance in New Zealand and get answers to critical questions such as whether motorcycle insurance is legally required, how much coverage you need, and how to stay safe on the roads.

Is motorcycle insurance required by law in NZ?

In New Zealand, motorcycle insurance is not legally required. However, while not mandatory, motorcycle insurance is highly recommended. Without motorcycle insurance, you could be left with significant financial burdens in the event of an accident or theft.

What’s more, if you use finance to pay for your motorcycle, your lender may require you to have motorcycle insurance as part of the loan agreement, to protect their investment in case of an unforeseen event.

How much motorcycle coverage do you need?

When it comes to motorcycle insurance, there are several types of coverage to consider. The right level and type of NZ insurance will depend on your personal circumstances and requirements.

1. Third Party Insurance

This is the most basic form of motorcycle insurance, covering you for damage caused to another person’s property or injury to someone else, but not to your own motorcycle.

2. Third Party, Fire and Theft

This type of motorcycle insurance not only covers third party damage and injury, but also includes protection against theft and fire damage to your motorcycle.

3. Comprehensive Insurance

Comprehensive insurance offers the highest level of coverage and includes all the benefits of Third Party, Fire and Theft, plus coverage for damage to your own motorcycle, even in the event of an accident when you’re at fault, provided that you are adhering to the terms and conditions outlined in your insurance policy (such as compliance with driver licence conditions and vehicle safety standards). Read this blog to find out some common reasons why insurance claims can be denied even with comprehensive vehicle insurance and how to avoid these situations.

When choosing the right level of coverage, consider factors such as the value of your motorcycle, how often you ride, and your budget. While comprehensive insurance offers the most protection, it’s usually the most expensive. Work with an experienced Insurance Adviser, like those at Max Insurances, to make an informed decision about which motorcycle insurance is right for you and your motorcycle.

Tips for safe riding on the road

Protecting yourself and your motorcycle with insurance is just one part of responsible riding. Equally important are the habits and precautions you take to keep yourself and other road users safe on the road. Here are some essential tips for safe riding:

• Wear proper safety gear: The right motorcycle gear provides critical protection in case of an accident. Always wear a helmet, gloves, sturdy clothing, and footwear designed for motorcycling.
• Regular maintenance: Regular servicing can help prevent breakdowns and accidents caused by mechanical failures. Keep your motorcycle in good condition by following the manufacturer’s maintenance recommendations.
• Stay visible and alert: Wear bright, reflective clothing to make yourself more visible to other road users, and always stay focused on the road and be aware of your surroundings.
• Follow traffic laws: Obey speed limits and all other traffic regulations and remember that motorcyclists are subject to the same rules as other road users.
• Keep a safe following distance: Use the two-second rule in good driving conditions and push it out to four seconds when roads are wet, icy or slippery. To check you’re travelling two seconds behind, watch the vehicle in front pass a landmark, then count ‘one thousand and one, one thousand and two’. If you pass the same landmark before finishing counting, you’re following too closely.
• Continue learning: Consider taking advanced riding courses to improve your skills and become a more confident and capable rider.
• Be prepared: While there’s only so much you can do to keep you and your motorcycle safe, it’s helpful to be prepared for any unexpected incident with the right motorcycle insurance cover.

An important safeguard in any event

While motorcycle insurance may not be a legal requirement in New Zealand, it’s an important safeguard against potential financial loss in case of an accident or theft. Choosing the right level of coverage and adopting safe riding practices are both essential aspects of responsible motorcycling. By taking these steps, you can enjoy the freedom of the open road with confidence and peace of mind.

Get motorcycle insurance advice from an expert: talk to the team of Insurance Advisers at Max Insurances. We understand that comparing policies and finding the right one can be challenging. So we aim to make it as simple as possible for you. With a network of industry contacts and expert knowledge of NZ insurance, our team can help you find the right motorcycle insurance cover. Moreover, if the unfortunate does happen and you need to make a claim, we will be there for you, advocating on your behalf and guiding you through the claim process to ensure a smooth and fair outcome.

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