COST OF INSURING A MODERN BIKE HAS DROPPED
16 January 2008 - Carole Nash Insurance Consultants

By 17% says Carole Nash

Research by the UK’s biggest motorcycle insurance specialist has revealed that the average cost of insuring a modern bike has dropped by 17 per cent over the past four years.

Carole Nash, which insures around one in four of all UK bikers, has analysed the average it has charged to more than 230,000 motorcyclists for insurance, including its standard benefits which include extensive breakdown cover, motor legal protection and European cover (‘Green card’). It found that in 2004 bikers were charged £304.92, a figure which progressively dropped to an average in 2007 of just £253.24.

The company is also predicting that whilst premiums are unlikely to fall further they are likely to remain low in 2008. “We are expecting premiums to remain fairly stable this year which means in real terms bikers will continue to enjoy the best value rates they’ve seen for many years. Should factors like rising claims inflation have an impact, it’s likely to be very small,” explained Carole Nash’s head of marketing, Rebecca Donohue.

But the overall picture of falling premiums may not be good news for motorcycling as a whole. Explaining the reason for the falls Mrs. Donohue, said: “The key reason for falling costs is that the number of UK bikers has remained relatively stable, with those on the road building up their no claims bonus which significantly cuts their premium. Whilst this is good news for existing bikers it’s not for motorcycling generally as it demonstrates that too few are choosing to travel on two wheels. As a community we need make greater effort to attract more people to biking which is more environmentally friendly and an ideal antidote to our ever congested roads.”

She added that whilst insurance costs for new bikers were higher due to their lack of experience they could help cut their premiums by as much as ten per cent and reduce accident risk by undergoing advanced rider training. Fitting additional security such as a Datatag system can also reduce costs.

The research also revealed that some bikers had seen insurance costs cut by more than half. A 26-year old Bristol biker riding a one year-old Suzuki SV 650s and with one non-fault accident and two years no claims bonus on their policy would have paid £829.85 in 2004. The 2007 figure is just £386.40 - £443.45 or more than 53 per cent less.

www.carolenash.com

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