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, severe weather, fire, vandalism, and theft; and your liability for accidental damage your bike causes to other people’s property (e.g. their vehicle or home).
  • Third Party Property Only Motorcycle Insurance covers your liability for accidental damage your motorbike causes 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?

Budget Direct covers all aftermarket modifications to your comprehensively insured motorcycle, except:

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

If your aftermarket modification is not listed and you’re unsure whether we’ll cover it, contact us and we’ll let you know.

When getting a quote and buying insurance, you’ll need to tell us about any modifications and accessories.

This will ensure you know what your policy does and does not cover.  

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 pay your claim, we’ll reimburse you the reasonable 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 pay your claim, we’ll arrange for a compact hire car for you to use until your bike is repaired or your claim is paid, up to 14 days.

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?

If you purchased your comprehensively insured motorbike new or as a demo model and it becomes a total loss within two years of its original registration, Budget Direct will give you a new-bike replacement.

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 for which your bike is insured.)

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
    Get a compact hire car if your motorbike is damaged in an accident, up to 14 days. (You’re already covered for a compact 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).
  • 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 we decide the rider of the Budget-Direct-insured motorcycle is partially or entirely at fault
  • an accident where we decide the driver of the other vehicle or another person is entirely at fault but you cannot tell us their full name, residential address and vehicle registration number
  • theft, attempted theft or a malicious act
  • storm, wind or hail
  • fire
  • 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 fixed 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 motorbike, 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 $3,000, say, you would pay $1,200 and we would pay $1,800.

If you make a claim for damage only to your windshield, you’ll be required to pay a windshield-only excess. 

Your Basic Excess, and the additional excesses and windshield-only excess 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 additional excesses that apply, namely:

  • rider is under 24 years of age inclusive
  • rider has not held a full Australian licence for at least two years
  • rider is not listed 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?

No — 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:

  • we decide the driver of another vehicle (or another person) was entirely at fault, and
  • you tell us 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, you can nominate your preferred repairer when you lodge your claim.

We’ll ask you to provide us with photos of the damage and a quotation for the repairs, so we can determine whether:

  • the quotation is competitive, and
  • the proposed repair method is satisfactory.

If either of these criteria is not met, we may decide not to authorise the repairs and, instead:

  • have your motorbike repaired by an alternative repairer chosen by us, or
  • pay you the reasonable cost to satisfactorily repair your bike, as determined by us.

Note that, if we authorise your nominated repairer to undertake the repairs, we’ll guarantee the quality of the repairs. However, we’re not responsible for the time it takes to complete them.

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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