Premium payment
We all know that insurance in South Africa is a grudge purchase, but insurance is an absolute must on our roads, especially if your chosen vehicle is still under finance terms. The price of your monthly premium will vary wildly depending on your risk profile, but what factors influence that cost calculation?
Related: How do I perform a pre-purchase inspection on a used motorcycle in South Africa?
Simply put, the premium you’ll pay depends on your insurance provider’s opinion of your likelihood of making a claim and, if you do, how expensive it will be. These are a few factors they consider when calculating your risk profile.
Are there any motorcycle clubs or communities in South Africa?
Your age
Your age will be the biggest determining factor in your insurance premium. If you are under 25, insurance companies will consider you high risk, and therefore, your premiums will be higher.
Your riding record and claims history
Your premiums will also be considerably higher if you have a record of speed infringements, reckless riding or any illegal activity. If you have also made more insurance claims in the past, it increases your risk profile, and insurance companies will respond accordingly.
Your job
If you have a high-risk job involving your motorcycle, such as deliveries, your premiums may be higher than normal as your risk exposure is significantly increased every day.
Where you live
If the insurance company considers the area where you reside risky, your premiums may be higher as well. This also encompasses where and how the motorcycle is stored or kept overnight, such as in a locked garage.
Included Riders
If you choose to include other riders on your policy, their risk profile may also affect your own if they are affected by these same points. Adding a rider to your policy increases the risk profile, and insurers will raise your premiums accordingly.
How you use your bike
If you use your motorcycle daily to commute to work, your premiums could be increased due to the time you spend on the roads. It is also very important to remember that insurers will not cover track use unless specified, and then you can expect a massive jump in premium costs.
The value of your bike
The more expensive and risk-prone your bike is, the greater the chance the insurer will charge a higher premium for coverage. This includes the type of bike you're riding, engine size, make and model, and any extra aftermarket equipment you've fitted.
What is the average price range for motorcycles in South Africa?
