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.

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.)

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.

Are personal items covered by Motorcycle Insurance?

If you have Comprehensive Motorcycle Insurance, certain personal items are covered. We’ll cover personal items that are designed to be worn or carried (except for riding gear, sporting equipment, tools of trade, and a few other exclusions). 

That cover applies if we are paying a claim for damage to your motorcycle, and those personal effects were stored in the locked compartment on the motorcycle. In those circumstances, we’ll pay up to $500 to help repair or replace covered personal items that were damaged in the same incident as your bike.

For extra peace of mind, we offer Riding Gear coverage as an optional extra.

Is there any cover for towing if I can’t ride my motorcycle after an accident?

If you’re a comprehensive policyholder, we’ll cover the cost of recovering, towing and storing your motorcycle if it’s stolen or unsafe to ride as a result of accidental damage.

If you’re a Third Party Fire and Theft policyholder, we’ll cover the cost of recovering, towing and storing your motorcycle if it’s stolen or unsafe to ride due to fire damage (i.e. towing is not covered if your car is damaged because of any other reason).

Do you allow non-standard modifications?

There are certain modifications that aren’t covered under your Motorcycle Insurance policy. These include:

  • Frames or subframes
  • Nitrous oxide
  • Custom paintwork (excluding decals/stickers)
  • ECU (electronic control unit) remaps or upgrades
  • Turbos or superchargers.

Otherwise, we cover all legal modifications. Just make sure your policy stays up-to-date with any modifications or changes you might make to your motorcycle. If you’ve made any changes, or you’re not sure if we’ll cover a particular modification, contact us and we’d be happy to help.