Be it for daily commute or for making deliveries, motorcycles are considered the perfect means of transportation. Over the years, motorcycle usage has increased in the country, credit for which goes to its affordability, convenience to navigate & park, and speed. But with so much ease comes the responsibility to ride safely and under control.
With the growing number of motorcycles on the road and other two-wheelers, the number of accidents has also increased, thus calling for riders to follow safe riding practices and to have motorcycle insurance.
But did you know that before offering policies to the applicants, insurance companies first carefully evaluate their driving habits? Therefore, knowing what providers look for in an applicant can influence both insurance premium cost and claim approval chances.
In this article, we have discussed insurance providers and the riding habits they prefer, why it matters, and what advantages it brings to a policyholder.
So, let’s begin discussing.
Motorcycle insurance in the Philippines - An overview for riders
Most insurance providers in the country offer the following coverage to motorcycle riders: Compulsory Third-Party Liability (CTPL), Comprehensive, and Add-ons.
While CTPL insurance is mandatory for all motor vehicle owners, it is affordable and offers coverage against injury/death to third parties. Comprehensive insurance, on the other hand, is widely recommended for its comprehensive coverage, including theft, fire, vandalism, flood, etc. Add-ons help enhance the insurance coverage according to the rider's requirements, available at an extra cost. This includes roadside assistance, acts of god, engine protection, personal accident, accessories coverage, and more.
Furthermore, a typical motorcycle insurance policy is valid for a year, after which the rider is required to renew the policy, or else it’ll become void. Also, riders need to submit updated documents, choose coverage smartly, and pay a premium on time.
Also Read: Why motorcycle riders need both CTPL & comprehensive coverage
Insurance providers & responsible motorcyclists
Insurance providers prefer low-risk riders, i.e., those who ride safely, obey traffic rules, keep their vehicle well-maintained, and wear proper safety gear. Why? That’s because such riders are less likely to file claims.
Thus, applicants with responsible riding behaviour are rewarded by the providers with better coverage options, affordable premiums, and a faster claim process.
Photo from FreepikRiding habits & insurance premium
Did you know your riding habits affect motorcycle insurance premiums a bit? For instance, responsible riders qualify for low premiums as they are considered less likely to get involved in an accident.
Also, riders who maintain a clean driving history, one that is free from accidents, traffic violations, etc, often experience a hassle-free claim process; chances of approval are high too.
Insurance providers often review applicants' accident reports, claim history, and police records to assess their riding habits. In some cases, riders' training background is also inquired about.
Insurers approved riding habits
Here are key riding habits that every insurance prefers:
- Obey traffic rules & regulations - A clean riding history showcases reliability and discipline at the end of the rider. Insurance companies go through applicants' records.
- Regular maintenance & safety checks - Riders who remain consistent with maintenance activities like regular oil change, tyre inspection, and brake checks help prevent accidents. Make sure to keep the maintenance records safe, as insurers may ask for proof.
- Wearing proper safety gear - Riders who use adequate riding gear at all times, including a helmet, gloves, and protective shoes, are considered responsible insurance applicants.
- Riding within speed limits - Riders who ride within the approved speed limit are considered low-risk clients, as overspeeding is one of the common causes of road accidents in the Philippines.
- Avoiding reckless & aggressive riding behaviour - Insurers look down upon clients with reckless driving behaviour; such riders often face claim approval issues.
- Lane discipline & safe overtaking - Collision risk reduces considerably when riders overtake with utmost care and respect for lane discipline.
Also Read: How to choose the best motorcycle insurance in the Philippines
Advantages of being a responsible rider
There are several advantages of being a responsible rider, all of which will push you to do all things good when it comes to riding a motorcycle.
- Better road safety & reduced accident risk - If you are a responsible rider, you help make the roads safer for others, which ultimately lowers accident cases due to negligence. Thus protecting not only your life and others' lives on the road.
- Affordable premium - The more responsible you behave, the less risky a client you are, which translates to low insurance cost. Remember, insurance providers reward safe riders with discounted rates.
- Fast & hassle-free claim process - Typically, you, the responsible rider, face fewer complications when filing a claim; mostly the process is quick and smooth.
Photo from FreepikMotorcycle insurance claim rejected - Here’s why?
If you filed an insurance claim and it was rejected, then there must be a reason behind it, as the insurance provider would never deny a valid application. The discrepancy may be related to riding or documentation. The former may include -
- Riding with an expired license
- Riding an unregistered motorcycle
- The cause of the motorcycle accident involves intoxication or recklessness on the part of the rider.
- The rider is using the motorcycle for commercial purposes without declaring the same to the insurer.
Practical tips to be a responsible motorcycle rider
- Be fully aware of the traffic laws - Make sure to know all the traffic rules and road signage; this will help you prevent ending up in an accident or getting charged for a violation.
- Get appropriate training - It is a good idea to get enrolled in an accredited motorcycle training school. This will help you get better equipped to face the road and its challenges.
- Regular motorcycle maintenance schedule - Make sure your travel buddy, aka your motorcycle, is serviced and checked timely. All this will help reduce the risk of mechanical failure or getting involved in an accident.
Also Read: Motorcycle insurance for delivery riders: Is it worth it?
Bottom line
The moment you become a vehicle owner, a motorcycle in this case, it becomes your responsibility to drive carefully, follow traffic rules, and behave at your best - all to make sure you avoid accidents or collisions at least at your end. In addition to making roads safer, this attitude of yours appears as a trusted applicant in the eyes of insurance providers. Thus helping you secure a low premium, faster claim, and peace of mind.
Overall, responsible riding saves both money and lives. So, if you want to grab the best insurance deal out there, start improving your riding skills and be as proactive as possible.
Also Read: Top driving habits car insurance companies prefer
FAQs
Q1. Is it compulsory to insure a motorcycle in the Philippines?
Ans. All motor vehicles, including cars, motorcycles, and trucks, must get CTPL insurance. It is required by law and is needed for LTO vehicle registration.
Q2. My motorcycle insurance expired. What can I do?
Ans. After expiry, you can opt for motorcycle insurance renewal. Contact your provider as soon as possible and follow the necessary steps.
Q3. What is the difference between CTPL and a comprehensive motorcycle insurance policy?
Ans. The CTPL motorcycle insurance policy only covers third-party injury/death. Comprehensive insurance, on the other hand, offers wide coverage to the policyholder & insured bike against theft, flood, fire, vandalism, etc.
Q4. How much does motorcycle insurance cost in the Philippines?
Ans. The cost of CTPL insurance is typically around PHP 250 - PHP 300. As for a comprehensive policy, it is far more expensive.
Q5. Can motorcycle insurance costs be reduced?
Ans. Yes. Here are a few suggestions - quote comparison from three to four providers,
installing anti-theft devices on the motorcycle, maintaining a clean claim & vehicle violation history, and timely renewal.
Q6. Can I transfer my motorcycle insurance policy to the new owner?
Ans. Yes, you can do so. Just make sure to notify the insurer, gather the required documents, and complete the formalities.
Q7. Will the new policyholder benefit from the No Claim Bonus (NCB)?
Ans. No. No Claim Bonus is associated with the policyholder and not the vehicle. Therefore, in case of policy transfer, you can retain the accumulated NCB, which can help you gain a discount on your following policy.
Q8. How long does it take to process a motorcycle insurance claim?
Ans. The timeline varies from a few days to weeks, depending on the insurance provider, completeness of the documents, and the number of claims raised.
Q9. What are the common reasons for rejection of a motorcycle insurance claim?
Ans. Top reasons for claim rejection include - expired license, reckless driving, fraud, and non-disclosure of commercial usage.
Q10. What documents are required for filing a motorcycle insurance claim?
Ans. The usual list of requirements includes - vehicle registration OR/CR, police report, insurance policy, and photos of the damage.
Q11. Is it possible to insure a second-hand motorcycle in the Philippines?
Ans. Yes, the only requirement is that the motorcycle must have valid registration documents.
Q12. Will my riding history have any impact on my motorcycle insurance premium?
Ans. Of course, riders with clean records enjoy lower premiums.
Q13. Does my motorcycle insurance policy cover damages caused by natural disasters like floods?
Ans. Only if your insurance policy includes ‘Acts of God’ coverage.
Q14. Can riders doing delivery work ensure their motorcycle?
Ans. Yes, however, they need to declare commercial usage of the vehicle to the provider to get optimum coverage.
Q15. Where can I appeal for a rejected motorcycle insurance claim?
Ans. First, ask your insurer for the reason for rejection and appeal. If the matter remains unresolved, escalate it to the Insurance Commission.
