Have you ever considered what sort of insurance payout you’d receive in the unfortunate event that your motorcycle is written-off? No one likes to contemplate the worst-case scenario but it’s wise to make sure you don’t find yourself out of pocket in such circumstances – that’s why we take out insurance in the first place.
Sadly, the amount you’d stand to receive may be less than you’re expecting. In fact, there’s a very good chance that your payout would be short of the amount you’d need to buy a like-for-like replacement, which would leave you having to find the money to make up the difference or settle for a cheaper model.
Avoid a shortfall with our GAP Insurance
Motorcycle GAP Insurance from MotorEasy offers a solution, covering any disparity between the payout your insurer offers and the amount you need to purchase a like-for-like replacement. It effectively tops up your existing policy, ensuring that you won’t find yourself out of pocket in the event of a write-off.
Why do I need motorcycle GAP insurance?
Like any motor vehicle, a motorcycle is subject to depreciation. In fact, you can usually expect the value of your bike to depreciate the moment you ride it off the dealership forecourt. After three years it’s likely that your bike will have dropped in value by as much as 60%.
Why does depreciation impact my potential insurance claim?
The reason for a likely shortfall in your insurance payout compared to the cost of like-for-like replacement is that most insurance only pays out the current market value of your motorcycle in the event of a write-off. So, as we’ve established this figure likely be subject to significant deflation.
Consequently, if you purchased a new motorcycle for £20,000 and need to make a claim three years later, you could be looking at a payout of just £7,000, assuming the value of the bike has depreciated 60% in three years. This could potentially mean you’d have to find £13,000 on top of your insurance payout to purchase a new like-for-like replacement.
MotorEasy GAP Insurance protects you against this situation, covering you for the bike’s value at inception by increasing in value over time while the value of your bike depreciates. It’s a great way to offset depreciation and ensure that you don’t find yourself facing a huge bill.
Motorcycle write-off categories
There are several different categories of write-off:
- Category A - The worst category. If your bike is deemed to be a Category A write-off there really is no way back for it, it’s irreparable. The entire bike must be destroyed. You can’t even salvage parts and sell them.
- Category B – The bike is judged to be beyond repair but, unlike a Category A write-off you are allowed to remove parts and resell them. If your insurer has classified your motorcycle as a Category A or B write-off it must be destroyed (your insurer will do this for you) and the DVLA will have to be informed.
- Category S – Structurally damaged. This category of write-off can be repaired but to do so would cost more than the value of the bike. If you nonetheless choose to repair the bike, the DVLA will retain a record that it was given a Category S classification.
- Category N – Not structurally damaged, can be repaired. Safe to be repaired as damage is typically cosmetic, though some insurers may refuse to repair themselves.
Does GAP Insurance make financial sense?
It’s easy to hope for the best and dismiss the possibility of a write-off as unlikely, but it’s actually far more common than many people think.
Motorcycle insurance is supposed to provide peace of mind, so it’s disappointing to discover that most policies are found wanting when it comes to the crunch. It’s wise to contemplate the worst-case scenario and protect yourself against it, which is precisely what GAP Insurance is designed to offer.
MotorEasy GAP Insurance offers complete peace of mind at an affordable price. If you value your car and want to protect your investment it represents a savvy addition to your existing policy.
Our GAP Insurance is a cheaper way to get the cover you need, offering a saving of up to 70% on dealer insurance policies.
How to get a motorcycle GAP insurance quote
Getting your MotorEasy® GAP Insurance quote couldn't be quicker (or easier!). Our GAP Insurance page gives you all the information you need and a convenient way to obtain a quote in just a few short steps.