When it comes to motorbike insurance, finding the right balance between the cost of your premium and the excess can be a tricky task. Many riders face the dilemma of choosing between a higher excess for reduced premiums or a lower excess for better peace of mind. To help you make an informed decision, we’ve examined the pros and cons of both options, so you can find the perfect fit for your motorbike insurance needs.
Higher Excess for Lower Premiums
Opting for a higher excess can be an attractive choice for many riders, as it typically results in lower insurance premiums. By choosing to pay more in the event of a claim, you demonstrate to the insurer that you’re willing to shoulder more of the financial burden. Consequently, they may offer you lower premiums. For riders on a tight budget, this can be a valuable strategy to reduce insurance costs.
However, there are some downsides to consider. Firstly, the potential savings could be negated if you need to make a claim. In such cases, you’ll be required to pay the higher excess, which could leave you out of pocket. Furthermore, if your excess is too high, you may struggle to find the funds to cover it in the event of an accident. Consequently, opting for a high excess may not be the best choice for everyone.
Lower Excess for Greater Peace of Mind
On the other hand, choosing a lower excess can provide you with greater peace of mind. With a smaller excess, you know that you’ll be able to afford the costs should you need to make a claim. Moreover, a lower excess means that you’re more likely to claim for smaller accidents or damages, ensuring that your motorbike is always in tip-top condition.
Nevertheless, the primary downside of a lower excess is the increased cost of your insurance premiums. This can make it more expensive to maintain your motorbike insurance policy in the long run, which is something to carefully consider when weighing your options.
Striking the Right Balance
Ultimately, it’s essential to strike a balance between the two extremes to find the right insurance policy for you. It’s crucial to assess your financial situation, your risk tolerance, and your riding habits before making a decision. By doing so, you’ll be better equipped to choose an excess level that both saves you money and provides peace of mind.
Frequently Asked Questions
Q: Can I change my excess after I’ve taken out a policy?
A: Yes, most insurers allow you to change your excess at any time during the policy term. However, doing so may result in adjustments to your premium, so it’s worth discussing the implications with your insurer beforehand.
Q: What factors affect my motorbike insurance premium?
A: Several factors influence your motorbike insurance premium, including your age, location, riding experience, type of motorbike, and claims history. The excess you choose will also impact your premium, with a higher excess typically leading to lower premiums.
Q: How do I decide on the right excess for me?
A: Consider your financial situation and risk tolerance when deciding on an excess. If you can comfortably afford a higher excess and prefer lower premiums, this may be the right choice for you. Alternatively, if you would rather have peace of mind and lower out-of-pocket expenses in the event of a claim, a lower excess may be more suitable.
