Car Insurance

After years of stagnant or declining sales owing to a harsh economic climate, the motorbike market is again booming. Twelve- month sales figures to August show bike sales rose 39 per cent towards the 85,000 mark, with the 900cc bracket accounting for most of that growth.

According to Tony Woodall of Metropolis Motorcycles, a bike business in London, the major growth area for bikes is now with upwardly mobile executives and directors. “This includes the born-again biker who may have had one 15 years ago and is now in a position to spend over pounds 9,000 on a top-of-the-range Honda, Suzuki or Kawasaki.”

One key factor behind the resurgent bike market has been the purchase of machines for leisure, fuelled by a prosperous economy and fine summer weather. This is combined with the practicality of using a motorbike to negotiate the traffic-clogged streets of urban areas to reduce travel time. But bike riders need bike insurance,and bikes create special problems. They are four times more likely to be stolen than cars, and the lucrative market in spares makes small bikes just as likely to be targeted by thieves as the expensive super-bikes. Only 25 per cent of stolen bikes are recovered. According to Ken German, technology officer at the Metropolitan Police, recovered bikes are piling up at police stations all over the country because their identification marks have been removed. Bike riders are also at a higher risk of accidents than drivers of four- wheeled vehicles. Two per cent of women riders and 3.7 per cent of men had serious accidents in 1995, excluding riders riding on car licences. This means that, pound for pound, bike insurance will be dearer than for cars. Comprehensive insurance covering accident damage and parts for bikes is also more costly relative to third-party cover than in the case of cars. Traditionally, Norwich Union has had the dominant share of bike insurance, but direct marketing has brought new players into the market. Mike Bowman, marketing manager at Hastings Direct, says: “We saw a gap in the bike insurance market for a direct service similar to that provided to car owners. As a result, we launched a service this year which offers bike owners a free-phone number which can be called 12 hours a day, over-the- phone cover and flexible payment methods.” Insurers have also become more imaginative in marketing their policies. The AA offers its members a 10 per cent discount on insurance. Norwich Union has announced that bikers who have not made a claim in five years are entitled to a 50 per cent no-claims discount on its Premier bike policy. Eagle Star, another major player, also has a deal which cuts the cost of insurance for new policyholders if they take an advanced training course. Malcolm Nash, a director at specialist bike broker Carole Nash, said: “Approaching an insurer direct means they will only quote you their own policy. An established motorbike broker will have access to a range of different policies from which they can choose the most appropriate. Brokers also have a degree of specialist knowledge about bikes which a direct insurer may not possess.” Nash offers owners a 10 per cent discount for fitting approved immobilisers, 5 per cent off for Datatag security devices, 5 per cent for mechanical locks and garaging and uninsured loss cover of pounds 10 for the legal costs of fighting disputed claims. Motorbike manufacturers also provide insurance for their customers. Honda customers have two choices - Honda Care and Honda Cover. In the case of Honda Care, the Honda customer will benefit from a 45 per cent discount if they have five years’ riding experience - not bad if you have a five- year no claims bonus and are paying over pounds 400 to insure a Honda Fireblade. Suzuki, Kawasaki and Yamaha also provide insurance for customers. Yamaha is offering free insurance for any 1997 model Yamaha motorcycle bought in October. Otherwise, Yamaha’s insurance arm will charge a 35-year-old man living in central London an annual premium of pounds 526 fully comprehensive for a 900cc Diversion, reduced to pounds 306 in an area deemed less risky. Motorcycle owners in South Wales and the west country will soon be able to benefit from a new service launched by Holman Superbike Plus. This service gives brokers access to the majority of insurance policies on the market for bikes from 50cc up to 1,000cc. If the scheme proves successful, Superbike Plus will become available to brokers in other parts of the country. q Contacts: AA, tel: 0800 125 620; Hastings Direct, 0800 00 1066; Carole Nash, 0161-927 2424; Premium Search, 0990 134920. Eagle Star and Norwich Union sell through brokers.