How Motorbike Accidents May Affect Your Insurance Renewal
Key Takeaways
- Motorbike accidents can significantly increase your insurance premiums.
- Accidents may impact your policy coverage terms and no-claim discounts.
- Taking preventive measures and improving riding habits can help manage insurance costs.
- Comparing motorcycle insurance options and investing in safety can ease renewal challenges.
In recent years, the number of motorbike riders has grown steadily, with many appreciating the convenience and freedom two-wheelers offer in urban environments like Singapore. However, riding a motorbike comes with inherent risks, including a higher likelihood of road accidents compared to car drivers. Unfortunately, if you are involved in a motorbike accident, it can directly affect the terms and pricing of your insurance renewal.
Understanding how insurers view accidents and adjust premiums is crucial for any biker in Singapore aiming to manage future insurance costs effectively.
Understanding Insurance Rate Adjustments
When it comes to insurance rate adjustments, insurers primarily rely on risk assessment. They evaluate various factors which may include your age, riding history, type of bike, and accident records to determine your premium. A rider with a history of accidents is seen as a higher risk, which often leads to increased motorbike insurance premiums.
If you have been involved in an accident, insurers may interpret it as a predictor of future claims, making you a costlier customer to insure. As a result, your renewal premium could rise sharply, making it essential to understand how your actions on the road influence your insurance rates.
Impact of Accidents on Insurance Renewal
Premium Increases
One of the most immediate effects of an accident is an increase in your insurance premium. Since your risk profile changes after an accident, insurers may adjust your motorbike insurance premiums upwards to reflect the higher likelihood of future claims.
Changes in Coverage Terms
Following a claim from a motorbike accident, insurers may also modify your policy's terms and conditions. You might face higher deductibles, lower coverage limits, or exclusions for certain types of damages. These adjustments can significantly affect the protection you receive unless you review your renewal documents carefully.
Loss of No-Claim Discounts
A critical benefit for any biker in Singapore is the no-claim discount, which rewards riders for maintaining a claim-free record. However, being involved in an accident can reset this advantage, resulting in a loss of discounts and making your renewal noticeably more expensive.
Tips for Managing Increases in Premiums
Safe Riding Courses
One effective way to mitigate the impact of a motorbike accident on your premiums is by enrolling in defensive driving or safe riding courses.
Select Based on Your Needs
After an accident, it is wise to compare various motorcycle insurance policies across different providers. Not all insurers weigh accidents equally; some may offer more competitive premiums even if you have a claim history. It is best to select an insurance plan based on your needs.
Here are some key benefits of Income Insurance’s Motorcycle Insurance:
- Exclusive roadside accident assistance and accident reporting service from Orange Force.
- Personal accident coverage to protect you in the event of an accident.
5% loyalty discount on your premium if you have been insuring your motorcycle with us for more than three years. - Reimbursement of expenses incurred for vehicle repairs in the event of an accident.
- Coverage for third-party property damages arising from an accident.
Choice of three plans and coverage based on your riding needs. - Option to pay with flexible credit card instalment payment plans1.
Preventive Measures to Avoid Accidents
Prevention is always better than cure, especially when it comes to maintaining affordable motorbike insurance premiums. Regular bike maintenance checks ensure your motorbike is in peak condition, reducing the likelihood of mechanical failures on the road. Wearing proper safety gear, such as helmets, gloves, and jackets, along with strict adherence to traffic rules, can significantly lower your chances of being involved in an accident.
Of foremost importance is to choose the right helmet. The most expensive helmet price range can be up to S$1000. However, if you consider the value of the helmet in protecting your head from impacts, the cost is a small price to pay.
Here are some quick tips to select the right helmet for you:
Prioritise full-face helmets
Singapore’s hot climate and law requiring PSB-approved helmets make open-face options tempting. However, full-face helmets offer the best protection, especially around the jaw and face, which are most vulnerable in crashes.
Choose PSB-approved helmets that are well-fitted
Only helmets with the PSB/TÜV SÜD certification are legal. Fit should be snug enough that it won’t twist or slide off, and the chin strap must be fastened, an improperly fitting helmet may come off during impact.
Choose helmets with layered protection with solid shell and EPS lining
A robust outer shell (like polycarbonate or fibreglass) distributes impact forces, while the EPS foam liner inside cushions and slows head movement on impact, working together to reduce brain injuries.
Visor quality and ventilation
A clear, anti-scratch visor ensures visibility in rain or glare, while well-designed ventilation prevents fogging and keeps the helmet cool, essential in Singapore’s humid weather.
Replace regularly and after any crash
Even without visible damage, the EPS liner degrades over time, helmets should be replaced roughly every five years, or immediately after a significant impact.
Additionally, understanding what to do in a road accident can help manage the situation better if mishaps occur, potentially reducing the severity of claims and their impact on your insurance.
In Singapore, being a responsible biker is not just about staying safe, it also affects your financial well-being when it comes to motorcycle insurance renewals.
A single motorbike accident can lead to higher premiums, changed coverage terms, and the loss of valuable no-claim discounts. By riding safely, improving your security measures, and being proactive in shopping for the best insurance deals, you can better manage your insurance costs and enjoy peace of mind on the road.
To learn more about comprehensive and competitive motorbike protection, explore Income Insurance’s motorcycle insurance plans today.
1 This is only valid for payment made using your OCBC or DBS/POSB credit card. Other terms and conditions apply.
This article is meant purely for informational purposes and does not constitute an offer, recommendation, solicitation or advise to buy or sell any product(s). It should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income Insurance products mentioned are specified in their respective policy contracts. Please seek independent financial advice before making any decision.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Income Insurance or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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