What are the different types of motorcycle insurance?

Budget Direct offers three types of motorcycle insurance:

  • Comprehensive Motorcycle Insurance covers loss or damage to your bike due to an accident, weather, fire, vandalism, and theft.  It also covers damage caused by your bike to other people’s property (e.g. their vehicle or home).
  • Third Party Property Only Motorcycle Insurance covers damage caused by your bike to other people’s property (e.g. their vehicle or home). It does not cover damage to your bike (unless it’s damaged in an accident caused by an uninsured driver, in which case your bike has limited cover).
  • Third Party Property, Fire and Theft Motorcycle Insurance provides the same protection as Third Party Property Only, plus cover for loss or damage to your bike if it’s stolen or catches fire.

The type of cover you have is shown on your motorcycle insurance certificate.

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Which types of motorcycles does Budget Direct insure?

We insure a wide range of on-road and off-road motorcycles against accidental loss or damage, namely:

  • road bikes
  • scooters
  • cruisers
  • enduro motorbikes
  • sports bikes
  • dual-sport motorcycles.

What’s the difference between a scooter and a moped?

Most scooters and mopeds have step-through frames and so look similar. What sets them apart is their engine size and maximum speed.

Mopeds have an engine capacity not exceeding 50cc and a top speed not exceeding 50kmph.

In contrast, the most powerful scooters have engines as big as 850cc and at full tilt can clock around 200kmph.

While Budget Direct insures scooters, we don’t cover mopeds.

Do you insure motorcycles used for business?

No — Budget Direct does not insure motorbikes used for business of any kind, including:

  • carrying passengers for payment
  • carrying or delivering other people’s goods for payment, whether as a contractor or otherwise (e.g. parcel or food delivery)
  • riding tuition for payment
  • hiring the motorcycle to other people.

We cover only motorbikes used privately, including for commuting to and from your home and regular place of work.

Does motorcycle insurance cover modifications?

A wide range of aftermarket modifications are covered under our Comprehensive insurance. However, certain aftermarket modifications are not covered, such as:

  • custom paintwork (excluding decals/stickers)
  • ECU (electronic control unit) remap or upgrade
  • frame or subframes
  • nitrous oxide kit
  • turbo or supercharged.

When getting a quote and buying insurance, you’ll need to tell us the value of your modifications and accessories. If any circumstances change while you’re covered, you’ll just need to let us know as soon as possible, just so your coverage isn’t affected.

Does motorcycle insurance cover a hire car?

If you’re a Comprehensive or Third Party Property, Fire and Theft policyholder and your motorcycle is stolen and we accept your claim, we’ll reimburse you the reasonable daily cost to hire a compact hire car for up to 14 days, up to $1,000. 

For an additional premium, Comprehensive policyholders can add an optional ‘Accident hire car’ benefit to their policy. 

If we accept your claim, we’ll arrange for a compact hire car for you to use until:

  • your bike is repaired,
  • your claim is paid, 
  • up to 14 days have been used, or

You can add this benefit when you get a quote and buy a policy. If you’ve already bought one, you can add it by calling us on 1300 306 560.

Does my cover include a new-bike replacement?

Your motorcycle is eligible for a new-bike replacement if:

  • you purchased the motorcycle new, or
  • as a demonstrator model from a licensed motor vehicle dealer who was the first registered owner of the motorcycle with less than 5,000km at the time of purchase
  • the motorcycle becomes a total loss within 2 years of the original registration.

A total loss of your motorcycle is when:

  • it’s stolen and not recovered, or
  • damaged to the extent that, having considered all available information and relevant laws, it’s reasonable for us to decide that it would be unsafe or uneconomical to repair.

If this is the case, we’ll replace your bike with a new one of the same make, model and specification. (If one is not available in Australia, we’ll pay you the amount you originally paid for the motorcycle.)

We’ll also pay the cost of the new bike’s first 12 months of registration and compulsory third-party insurance.

This benefit applies only to motorcycles that had no unrepaired accident or hail damage prior to us insuring it.

Do you offer any optional extras?

For an additional premium, you can add one or more of the following optional benefits to your Comprehensive Motorcycle Insurance policy:

  • Accident hire car
    If your motorcycle was damaged in an accident, we’ll arrange a compact hire car for you, for up to 14 days. (You’re already covered for a hire car if your bike is stolen.)
  • Riding gear
    Repair or replacement of your and/or your pillion passenger’s helmet and other riding gear (up to 10 years old) if they’re damaged in an accident, up to a nominated amount of either $1,000, $2,000, or $3,000.
  • Choice of repairer
    If you have a claim with us, you can nominate your preferred repairer (subject to our approval). You can find out more about choosing your own repairer here.
  • Reduced windshield excess
    Reduce your excess for damage to your motorcycle’s windshield to just $40.

How much can I insure my motorcycle for?

With Budget Direct, you can insure your motorbike for its market value or, in some cases, for an agreed value. 

Market value is the reasonable cost to replace your bike with one of the same make, model, age, and condition as at the time of the loss or damage. 

Agreed value is the amount we agree to insure your bike for during each 12-month term of insurance. 

The value for which your bike is covered is shown on your insurance certificate.

Which riders must be listed on my policy?

You must list any household members (including learner, provisional and occasional riders) who may ride the motorcycle. Unlisted household members will not be covered. 

Any non-household members who ride the bike are automatically covered. If you list them on your policy, you’ll avoid having to pay the unlisted rider excess (other excesses may apply). 

How can I pay for my motorcycle insurance?

You can pay your Budget Direct motorcycle insurance premium by direct debit from your bank account or by credit card.

You can pay monthly or annually (the last option is the most economical, as you’ll pay a lower premium and avoid administration fees).

What is an at-fault motorcycle insurance claim?

An ‘at fault claim’ is any claim that cannot be recovered from another party, either in part or in full, such as:

  • an accident where, given all available evidence, it is reasonable for us to decide the rider of the motorcycle is partially (or entirely) at fault,
  • an accident where, given all available evidence, it is reasonable for us to decide the driver of the other vehicle (or another person) is entirely at fault, but you cannot tell us (or we cannot obtain) their full name, residential address, and vehicle registration number,
  • theft, attempted theft or a malicious act,
  • storm, wind or hail,
  • fire, or
  • an accident involving an animal.

If you make an at-fault claim, you’ll need to pay the applicable excess/es.

What is a motorcycle insurance excess?

A motorcycle insurance excess is the amount you pay towards an at fault claim.

Depending on the circumstances of the incident that led to your claim, you may have to pay more than one excess: your Basic Excess plus any additional excesses that apply.  

For example, if someone under the age of 21 causes an accident while riding your motorcycle, you’ll have to pay your Basic Excess (let’s assume it’s $600) plus an additional excess of $600 due to the rider’s age.

It means that, if the damage bill was $5,000, say, you would pay $1,200 and we would pay $3,800.

Your Basic Excess and the additional excesses are shown on your insurance certificate.

If you make a claim, we’ll tell you which excesses apply and when and how to pay them.

You won’t have to pay an excess if the accident is deemed a no-fault accident.

If I make an insurance claim, what will my excess be?

Unless you or another rider of your motorcycle have a no-fault accident, you’ll be required to pay:

  • your Basic Excess
  • as well as any other additional excesses, which might apply if the rider:
    • is under 25 years of age inclusive
    • has not held a full Australian licence for two or more years
    • is not listed as a rider on your insurance certificate.

The dollar amounts of your Basic Excess and the additional excesses are shown on your Insurance Certificate.

Do I have to pay an excess if the accident was not my fault?

You do not have to pay an excess if you have a no-fault accident with another vehicle.

A no-fault accident is one that meets the following criteria:

  • with all available evidence, it is reasonable for us to decide the driver of the other vehicle (or another person) is entirely at fault, and
  • you tell us (or we can obtain) the at-fault driver’s full name, address, and vehicle registration number.

Can I choose my own repairer?

Comprehensive policyholders can add an optional ‘Choice of repairer’ benefit to their policy. An additional premium may apply. 

If you’ve selected this option, when you lodge your claim, you can nominate your preferred repairer (which could turn out to be a repairer from our repair network).

If your preferred repairer isn’t a part of our network, we will:

  • need you to provide us with a quote for the repairs from your preferred repairer (who must be appropriately licensed)
  • consult with your preferred repairer to determine the most suitable method of repairs based on the damage to the motorcycle
  • review the quote to ensure:
    • it’s competitive, based on the reasonable cost of repairs
    • the repairs will be completed to a satisfactory standard.

Note that if the repairer’s quote isn’t competitive or we decide the repairs would not be completed to a satisfactory standard, we may decide not to authorise repairs. If this is the case, you’ll be able to choose whether:

  • the motorcycle is repaired by an alternate repairer chosen by us, or
  • we pay you the reasonable cost to satisfactorily repair the motorcycle.

To help through this process, if your motorcycle is unsafe to drive, we can also help cover transport costs to get your motorcycle to your preferred repairer (up to 100km, any costs to travel further than this will need to be paid by you).

Do you guarantee repairs to my motorbike?

Yes — repairs authorised by us are guaranteed for as long as you own the motorcycle. 

This guarantee covers materials and workmanship.

Can I ride a scooter with a car licence?

Half the states and territories in Australia require you to have a motorcycle licence to ride a scooter (electric motor or internal combustion engine).

The other half allow you to ride a scooter if you have a car licence — but only if the scooter’s engine size is 50cc or less and/or it can’t go faster than 50kmph.

(Budget Direct only insures riders who hold a valid Australian motorcycle licence or permit and comply with its conditions.)

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Can I pay my motorcycle insurance excess in instalments?

Normally, a motorcycle insurance excess is paid as a lump sum, not in instalments. 

If you can’t pay it as a lump sum due to financial hardship, you can ask us whether you might be entitled to assistance. If you are, we may give you longer to pay the excess or allow you to pay it in instalments, for example.

I need additional support, is there other assistance you can provide?

We are committed to supporting customers within the bounds of our insurance expertise. Additional support options are listed on our Customer Assistance page.

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