Smart insurance tips for Filipinos buying used motorcycles

Motorcycle insurance for second-hand units

Many used motorcycle buyers are often confused about insurance; their long list of questions includes -

• Is it possible to insure used motorcycles?
• What insurance covers used motorcycles?
• Is used motorcycle insurance a legal requirement?

And the list goes on…

According to the law, every motor vehicle in the Philippines, whether a car or a motorcycle, whether brand new or used, must be insured. As for legal requirements, Compulsory Third-Party Liability (CTPL) insurance is a must; it is needed for vehicle registration and its renewal at the LTO. You can not legally drive on a public road without CTPL insurance.

This answers the first and third questions. Regarding insurance coverage for used motorcycles, it is generally the same as for a brand-new motorcycle, covering CTPL insurance, comprehensive insurance, and add-ons.

Here is a brief on the coverage -

Also Read: Top motorcycle insurance add-ons every Filipino rider should consider

Common myths around motorcycle insurance

Myth 1: CTPL is enough
Reality: It is not; it doesn’t cover your injuries or motorcycle damages.

Myth 2: Insuring a used/old motorcycle is expensive
Reality: It is not always the case; premiums for used motorcycles are usually low.

Myth 3: Comprehensive insurance is limited to new motorcycles
Reality: If the used unit meets the insurer’s safety standards, comprehensive coverage is offered.

Key factors to consider when buying used motorcycle insurance

Get the ownership transferred & insurance policy updated

The first thing to do after buying a used motorcycle is to update the vehicle registration, i.e., transfer the ownership to your name. Similarly, update the insurance documents to avoid any issues during claim processing.

Assess the motorcycle’s condition

Keep in mind that insurance providers often inspect motorcycles before issuing insurance. Therefore, make sure the unit is well-maintained with proper service records.

Age matters

When buying a used motorcycle or getting insurance for one, note that most insurers offer limited coverage for units that are 10 years and older.

Practical & smart tips for Filipinos buying used motorcycle insurance

Tip 1: Choosing between CTPL and comprehensive insurance
While CTPL is a must, it offers limited coverage and is affordable. However, comprehensive insurance is recommended if your pre-loved unit is used frequently or has a high value.

Tip 2: Compare providers
When buying insurance, make it a point to compare quotes from at least two to three providers. In addition to considering the insurance cost, also examine the coverage, claim process, and customer service.

Tip 3: Go for reputed providers
It is crucial that you only go for well-reputed providers that are certified by the Insurance Commission (IC). This ensures fast claim processing and strong customer support.

Tip 4: Do negotiate
When buying insurance, be sure to negotiate; you can ask for a better quote, a discount, or additional coverage.

What not to do when buying used motorcycle insurance

Here are some things that you should altogether avoid when insuring a used motorcycle -

• Never ever underestimate the need for pillion safety and accessory coverage. Make it a point to review your policy for adequate coverage, especially if the unit features custom parts such as alarms, upgraded mufflers, or GPS trackers.
• Don’t forget to update your insurance policy in case there are changes to your personal details, such as an address or contact number, or if an accessory is added to the motorcycle.
• Make it a point to update the ownership and registration status of the used motorcycle. If it is still under the previous owner’s name, the claim will definitely get denied.
• Before signing and after receiving the used motorcycle insurance policy, be sure to read the fine print. Avoiding this could lead to unwelcome surprises later in the form of policy exclusions and harsh policy terms.

Tips to save on used motorcycle insurance

Who doesn’t like to save money, especially when insuring your used motorcycle? So, here are some tips -

• Ride safely and follow all traffic rules. This will not only keep you and others safe but also maintain a clean record, which will help you enjoy a lower renewal premium.
• In case you have other vehicles (cars or motorcycles) at home, try insuring them with the same insurer.
• Bundling insurance can help you secure discounts from the insurer.
• Install anti-theft devices to make your vehicle safer; this will portray you as a responsible driver and potentially earn you discounts from your insurer.

Also Read: Motorcycle insurance for delivery riders: Is it worth it?

How to insure your used motorcycle

Step 1: Get CTPL insurance
You can buy CTPL insurance from an LTO-accredited provider, an insurance agent, or a bank. It’s quite easy and straightforward.

Step 2: Get comprehensive insurance
Compare at least two to three providers, opt for the most optimal offer, and make sure the insurer is IC-certified.

In both cases, you’d be required to submit the following documents: Vehicle OR/CR, a valid government ID, and proof of ownership transfer.

How to file a claim

Step 1: Report the incident (theft or accident) to the insurer as soon as possible.
Step 2: Contact the local police authorities and get a police report.
Step 3: Click photos of the incident, damages, and surroundings.
Step 4: Complete the claim form accurately and submit it along with the required documents.
Step 5: Co-operate with the adjuster sent by the provider.
Step 6: Wait for approval.

Bottom line

There is nothing wrong with buying a used motorcycle. In fact, it only allows you to save money and enjoy all the benefits associated with owning a bike. However, like a brand-new unit, the used motorcycle also needs to be protected. From what? Damage due to an accident, collision, fire, flood, vandalism, etc. Therefore, while buying a pre-owned motorcycle is a wise choice, protecting it with the right insurance is an even more intelligent decision.

So, what are the essential insurance tips for Filipinos buying a used motorcycle? This includes opting for the mandatory CTPL insurance, selecting comprehensive and add-on coverages wisely, avoiding common mistakes, and learning how to save money.

Remember, insurance is not an expense, but an investment that protects you, your passengers, your vehicle, and your wallet in the future. So, next time you rev up that engine, make sure you have insurance in place.

Also Read: 10 Powerful tips for faster motorcycle insurance claim approval in the Philippines

FAQs

Q1. I am a delivery rider with a used motorcycle. Can I insure my vehicle?
Ans. Yes, you can definitely get your motorcycle insured; however, the premium might be high due to the vehicle's commercial usage.

Q2. Is CTPL insurance sufficient for a second-hand motorcycle?
Ans. CTPL insurance only offers coverage against third-party bodily injuries or death. It does not cover the motorcycle owner or the insured unit. Therefore, in most cases, it is insufficient.

Q3. Is CTPL insurance mandatory for all motorcycle owners?
Ans. Yes, all motor vehicle owners, whether new or used units, are required by law to obtain CTPL insurance. It is necessary for LTO registration and its renewal.

Q4. Is comprehensive insurance available for used motorcycles?
Ans. Yes, many insurance providers in the Philippines offer comprehensive insurance for used units, especially if they are well-maintained.

Q5. What will happen if I don’t update the policyholder’s name on the used motorcycle policy?
Ans. This will result in the denial of the claim and may lead to the cancellation of the policy.

Q6. How much does motorcycle insurance cost in the Philippines?
Ans. CTPL insurance for motorcycles costs around PHP 300 to PHP 700; on the other hand, comprehensive insurance costs range between PHP 2,000 to PHP 6,000, depending on factors such as motorcycle value, type, make, model, coverage, and insurance provider.

Q7. Will comprehensive insurance cover damages to the used motorcycle?
Ans. Yes, it will cover damages to the used motorcycle - due to an accident, collision, attempted theft, flood, fire, etc.

Q8. What documents are required to apply for CTPL insurance?
Ans. To get CTPL insurance, gather the following documents: a valid ID, vehicle OR/CR, and driver’s license.

Q9. Does motorcycle insurance cover floods and typhoons?
Ans. Only if your insurance policy includes Acts of God coverage as an add-on or part of a comprehensive plan.

Q10. How long does it take to process a motorcycle insurance claim?
Ans. Typically, a claim process takes 7 to 30 days to complete, depending on the complexity of the claim and completeness of the documents.

Q11. Do insurance providers consider a motorcycle’s age while granting coverage?
Ans. Yes, you see older motorcycles are sometimes given limited coverage compared to brand-new units.

Q12. Can I buy motorcycle insurance online in the Philippines?
Ans. Yes, many insurance providers are going digital with their own mobile apps and online platforms, thus allowing clients to buy policies online along with other services.

Q13. What will happen if I lose my insurance certificate?
Ans. There’s no need to worry, as you can request a duplicate copy from the insurer against a small fee.

Q14. Is it possible to transfer an old policy to a new motorcycle?
Ans. Insurance policies are tied to a specific vehicle, and a new unit requires its own new policy. Therefore, transferring an old policy is not possible.

Q15. Can I retain a No-Claim Bonus?
Ans. Yes, you can retain No-Claim Bonus by requesting a retention certificate from the provider. This will enable you to get discounts on your new policy.

Also Read: How wearing proper motorcycle gear helps with insurance claims