Motorcycle Insurance Glossary - cover
Motorcycle insurance cover is the agreed area of risk covered by your insurance policy. There are three types of motorcycle insurance cover available …
- Third Party Only (TPO)
- Third Party Fire and Theft (TPFT)
- Fully Comprehensive
Third Party Only (TPO)
This is the minimum motorcycle insurance liability cover as required by law, which provides insurance cover for anyone (excepting you), that may be involved in an accident in which you are deemed to be at fault.
Third Party Fire and Theft (TPFT)
This extends the basic motorcycle insurance cover offered by TPO to include damage to your motorcycle caused by fire or theft. If your motorcycle is lost or damaged as a result of theft, attempted theft, fire, lightning or explosion, the motorcycle insurance company will …
- pay to repair the damage
- replace what is lost or damaged if this is more cost-effective than repairing it
- or settle your claim in the form of a pay out
What is not covered …
- The excess shown on your motorcycle insurance policy schedule
- Loss or damage to your motorcycle where possession is gained by any form of deception or fraud
- Loss or damage caused by theft or attempted theft if your motorcycle was not secured as agreed and laid out in your motorcycle insurance policy terms
Fully Comprehensive
Fully comprehensive motorcycle insurance policies include all of the above and extend the insurance cover to include accidental or malicious damage to your bike.
How much will a motorcycle insurance company pay?
The motorcycle insurance company will not pay more than the market value of the motorcycle at the time of the loss or the amount your motorcycle was insured for (less any excesses applicable), whichever is less. Some motorcycle insurance policies operate on an agreed value basis in which case this amount (less any excesses applicable), will be paid out. This is usually only applicable to classic or modified motorcycles.
* You should always carefully read your motorcycle insurance policy documents to determine the exact levels of cover in place, any excesses applicable and any special terms that may have been imposed.
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