What motorcycle insurance do you actually need?

CTP, third party, fire and theft, comprehensive… What’s the difference, and what do motorcyclists actually need?

Main types of insurance

There are three main types of insurance available to riders:

1. Compulsory third party (CTP) insurance
2. Limited property insurance (e.g. third party, fire and theft, enthusiast, dirt bike)
3. Comprehensive property insurance

One covers third party injuries, one covers limited property damage, and one covers property damage with extras. Read on to find out which is which, and which ones you need.

Compulsory third party (CTP) insurance

What does it cover?

CTP insurance will cover you against claims for damages for personal injuries sustained by another person as a result of an accident that you caused.

In other words, CTP insurance will cover you if you injure another person.

It goes both ways: If another person causes an accident and you suffer an injury, that person’s CTP insurance will cover them if you bring a personal injury claim against them.

Do you need it?

Yes. CTP insurance is compulsory (it’s in the name), if you are registering your bike.

You must obtain CTP insurance when you register your vehicle. In Queensland, you can choose your CTP insurer when you register your vehicle.

What else do you need to know?

You must make sure that your CTP insurance (like your registration) is designed for your vehicle.

There are a number of different vehicle classes when it comes to CTP insurance; including different classes of motorcycles.

There are different classes for motorcycles such as:

• Motorcycles with seating only for the driver;
• Motorcycles with seating for multiple people (such as a pillion or sidecar);
• Motorcycles used only as vintage, veteran, historic or street rod vehicles.

It is crucial that you obtain CTP insurance for your specific motorcycle. Similarly, if you change part of your bike (such as by adding or removing seating), you should update your CTP insurance.

LIMITED PROPERTY INSURANCE

What does it cover?

There are several types of limited property insurance that cover damage to certain property in certain circumstances.

Property insurance does not cover injuries.

Does it cover damage to Another person's property?

Some types of property insurance will cover you for the cost of damage you cause to another person’s property. That is often called ‘third party liability’ insurance.

Does it cover damage to your own property?

Some types of property insurance will cover you for the cost of damage to your property. This type of insurance is sometimes called:

• ‘Fire and theft’ insurance (which will cover you for damage to your property in certain circumstances such as natural disasters or theft);
• ‘Unregistered’ or ‘dirt bike’ insurance (which will cover certain recreational bikes in certain circumstances such as theft and accidental damage);
• ‘Enthusiast’ insurance (which will cover certain bikes and riders for damage to their property).

Do you need it?

You don't need it, but you might want it.

Property insurance is not compulsory, so you don’t technically need it.

However, you might want property insurance if you want to cover yourself against damage to your own property or other people’s property (or both).

What else do you need to know?

Like any insurance, it is important that you find a policy that suits you, your property and your riding style.

Property insurance policies vary greatly, particularly on issues such as:

• Circumstances of damage – theft, fire, flood, natural disasters, malicious damage, accidental damage, etc.
• Coverage of property – bike, helmet, gear, accessories, etc.
• Bike usage – road, track, riding conditions, etc.

So, research your options and find a policy that suits you best.

Comprehensive PROPERTY insurance

What does it cover?

Comprehensive insurance will provide broader coverage for property damage, and can provide some additional benefits.

Does it cover property damage?

Yes.

Unlike limited property insurance such as ‘third party’ (which only covers damage to other people’s property) or ‘fire and theft’ (which only covers damage to your property in certain circumstances), comprehensive insurance typically covers damage to both your property and other people’s property in a wider range of circumstances.

What else does it cover?

Many comprehensive insurance policies also offer additional benefits such as roadside assist, repairs, and vehicle hire.

Such benefits are very different from policy to policy, so ask about those benefits before purchasing insurance.

Do you need it?

You don't need it, but you might want it.

Comprehensive insurance is not compulsory, so you don’t technically need it.

However, you might want comprehensive insurance if you want to better cover yourself against property damage or if you want some extra perks.

So, what do motorcyclists need?

You need CTP insurance if you are registering your bike. That will cover you against claims against you for injuries sustained by another person as a result of an accident you are at fault for.

You don’t need property or comprehensive insurance, but you might want it. That will cover you against various types of property damage, depending on the policy you choose.

If you have any questions about insurance, if you’re battling an insurer, or if you need assistance with an insurance claim, feel free to contact us. We'll assist you in whatever way we can.