Why Ask So Many Questions - Its Only Motorcycle Insurance

By:Shaun Parker

You may be forgiven for asking what is underwriting and why does it matter to me, after all, most of us have no idea what happens to our application when it goes to the motorcycle insurer for assessment.

Insurance underwriters decide whether your application for motorcycle insurance should be accepted and on what terms. They assess a risk according to the likelihood of a claim being made by weighing up a number of factors and asking for detailed information.

Motorcycle Insurers protect the rider from financial loss by taking on millions of pounds in risk each year. Underwriters are needed to identify and calculate the risk of loss from policyholders, establish appropriate motorcycle insurance premium rates, and write policies that cover the risk.

The primary function of motorcycle insurance is to act as a risk transfer mechanism between the policyholder and the insurer. The principle of insurance is that the losses of the few are subsidised by the contributions of the many.

The aim of a motorcycle insurance underwriter is to minimise losses for their company and help to make a profit.

So what are the factors that decide your motorcycle insurance premium and why.

The motorcycle itself and the several factors that are linked to it, a mature rider deciding on whether to buy a small moped or a larger sports machine will undoubtedly pay a higher motorcycle insurance premium for the vehicle that has a higher performance.

The value of a motorcycle will affect the premium but only to a certain extent. Generally insurers will have value brackets, so a motorcycle worth between one hundred pounds or three thousand pounds will not see a difference in the premium charged, however, once the value brackets increase so will the motorcycle insurance premium.

Security on a motorcycle whether it is fitted as standard by the manufacturer or a device that the rider has purchased himself will have an affect on the insurance premium, generally however, only if it is an electronic device such as an alarm or immobiliser. Chains, disc locks and ground anchors are all preventative measures but do not usually merit a discount on the premium.

Where the motorbike is kept when not in use at the home address is an important factor for underwriters. In areas where the risk of theft is high due to an inner city postcode or a high value or prized motorcycle, being able to garage the machine will have a significant affect on any motorcycle insurance premium. Keeping your vehicle on a driveway or private property would be seen more beneficial by an underwriter than perhaps keeping it on a public highway.

The age and experience of the rider has a huge impact on the motorcycle insurance premium. An underwriter will deem a younger rider a higher risk, as he would a rider who has only just obtained his full licence. A rider who has a tarnished driving record whether it be motoring endorsements on a driving licence or involvement in road traffic accidents will influence an underwriter's decision on the motorcycle insurance premium he will quote.

On the surface, underwriting seems quite a simple process. Insurers ask you the questions that are designed to capture the information they need to build a clearer picture of you, and the factors which might increase the likelihood of you making a claim. Upon completion of a quotation and gathering all the necessary information, underwriters may

* Offer cover on standard terms
* Impose additional conditions, such as insisting on a certain type of security is fitted to the motorcycle.
* Exclude part of the risk, such as theft cover if the policyholder has already experienced more than one theft claim.

An underwriter may lose business to competitors if he appraises risks too conservatively, or he may have to pay excessive claims if the underwriting actions are too liberal.

Either way, you the motorcyclist pays your motorcycle insurance premium in good faith on the understanding your insurer will indemnify you in the event of a claim.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: Motorcycle, motorbike, insurance, insurance premium, insurer

Article Source: http://www.articles2k.com

Shaun Parker looks into the processes behind motorcycle insurance and exactly what factors determine how your motorcycle insurance premium is calculated. Visit http://www.insureyourbike.com to find out more.

Top Insurance Articles
1). Growing Old By : Joseph Kenny There are a couple of things in life that we know, at some stage, we will be worried about. Growing old certainly seems to be one of them. More and more, our culture is becoming obsessed by the cult of youth. Not only are film stars and musicians young and beautiful, but increasingly, politicians and newsreaders are getting younger also. Add to this.
2). Health Care Eligibility For Unauthorized Migrants - Moral & Practical Implications By : Erin Shaughnessy Various organizations and government officials have cited estimates for the number of illegal immigrants at between eight and twenty million. With rising health care costs as a major issue for most Americans, this article considers the moral and practical issues of providing medical care for uninsured immigrants. According to a research report entitled “The Size and Characteristics of the Unauthorized Migrant Population in the U.
3). Determining How Much Life Insurance You Need By : Stephen L. Nelson, CPA When considering life insurance, you’re planning and preparing for an event most of us would rather not think about. But life insurance represents a critical step in managing your personal finances and ensuring your family’s well-being. The Two Approaches to Life Insurance You can use one of two approaches to estimate how much life insurance you should buy: the needs approach or the replacement-income approach.
4). Can Car Insurance Be Affected By Your Bad Credit History? By : Joseph Kenny If you have bad credit you can be denied car insurance! The protections afforded to the consumer since the Depression of 1929 no longer exist. The Financial Laws passed through Congress in 1992 allowed banks, insurance companies, investment firms to handle banking, insurance and investment operations. Laws passed after 1929 had prevented banks from.
5). How to Get Cheap Auto Insurance on the Internet By : Heather Colman If you have a connection to the Internet and a computer you can easily find cheap auto insurance. With more and more businesses turning to the Internet to service their customers and increase sales, it's no wonder you see an insurance man on every virtual corner. Not only are most of the major companies online today they now provide insurance quotes and the ability to buy your policy right from their websites.
6). Gap Insurance: A Financial Safety Belt By : Peter Garant Why is gap insurance considered as a financial safety belt? Simply put, it keeps you from being financially ruined when disaster hits your car. For example you are in this situation, you bought a late-model car three months ago using a car loan with a regular car insurance. The car costs $30,000 and you have already made three payments of $900 each month.
7). Eight Rules for Saving Money When You Buy Insurance By : Stephen L. Nelson, CPA By following the eight rules explained here, you can save money, and just as important, you can save yourself from making serious mistakes when you shop for and acquire insurance policies. Rule 1: Buy Insurance Only for Financial Risks You Can’t Afford to Bear on Your Own The purpose of insurance is to cover catastrophes that would devastate you or your family.
8). Critical Illness Insurance The Non-Disclosure Problem By : Michael Challiner If you're in the unfortunate position of having to make a claim on your critical illness insurance policy, the last thing you want is insensitive hassle or apparent non co-operation from your insurer. But according to numerous newspaper articles, that's precisely what's happening. The core problem is that before they'll pay out, the insurer will always want to make exhaustive enquiries about your past health record.
9). Pssst - Want To Know A Secret That Banks & Car Insurance Companies Don't Share With You By : Tom OLeary Every single driver in the U.S. is required to have Car Insurance. And most of drive around confident that we have adequate coverage to protect us should we ever be involved in an accident. Yet, almost 97% of all drivers are not adequately protected...and don't even know it. Here's what I mean. Let's say you're involved in an accident and it's serious enough that the car is considered a "total loss" by your Insurance Company.
10). Life Insurance & Why It’s Important For Your Family By : Daphne Succes It’s sad to think about, but life insurance is something that everyone needs to consider. In the event of an unfortunate loss, an individual often wants to have the peace of mind in knowing that his/her family will be financially secure. Life insurance can be obtained in a number of ways, including from a national insurance provider, various credit cards and/or certain employers.

New Insurance Articles
1). The Facts About Life Insurance Quotes Online By : Michael Connelly A discussion on the topic getting life insurance quotes online.
2). How Students And Teen Driver Get A Cheaper Auto Insurance By : Grace Navas This article offer the tips on how to find lower insurance rate for young drivers.
3). Protecting The Largest Purchase Of Your Life By : John Layton How to protect your most valuable investment. Basic information on home insurance to protect the largest investment the majority of people will ever make.
4). Term Life Insurance for Smokers - 7 Critical Facts By : Tim C. Smith If you are a smoker the first consequence is higher rates than a non-smoker. The rates can be up to three times as high as a non-smoker policy so the cost difference can be considerable.
5). Dental Insurance For Family - What Family Dental Plan Should I Enroll In? By : Mike Singh Having the right family dental insurance is extremely important for maintaining your health. Find out which plans fit in with your family needs.
6). When To Consider Selling Your Life Insurance Policy? By : Paul Sherman A Life Insurance Policy is a personal property, like a house, car, antiques, old painting or stocks and bonds. You can sell your life insurance policy like you sell your other personal property items. Life insurance may now be viewed as a traditional asset that can be purchased or sold. Sale of Life insurance policy is called as Life insurance settlement, Life settlement or Senior settlement.
7). Life Insurance, A Great Investment Opportunity By : Mika Hamilton Insurance is often the safe and most risk free approach to investment. Most people think they are sufficiently insured when they are not. Hardworking people spend a lifetime earning what they have. Our personal wealth is a coupling of family and our income early potential.
8). All About Home Insurance Leads By : Oliver Turner After loads of man-made and natural calamities in USA the Home Insurance market has come much into prominence. And at present the competition is at its peak. Homeowners Insurance is a guarantee, which pays the cost of your house if it gets damaged in some natural or manmade disasters like fire, floods, storms etc. To get a good home insurance quote we often turn to agents.
9). Health insurance plans By : Janani Health Insurance: Health insurance, which is coverage for individuals to protect them against medical costs and give them a surity to a secured life in this unsecured world with day to day accidents, enormous infections and diseases which may be highly fatal such as Tuberculosis and other viral infections, Genetic disorders that requires relatively high costs for treatment and diagnosis.
10). Life Insurance Online By : Robert Lawrence There are many types of life insurance policies. Before you venture out for one, learn about them and see which one is applicable to your needs best. The following are the most common ones: 1. Term life insurance: This type of insurance is the most basic of all. Its one and only function is to cover your life with an amount of cash which on even of your death will be given to your nominee.