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Cycle
This information is intended to be a summary of the policy cover. For complete details of the policy cover, terms and conditions, please refer to the policy document.
Comprehensive
Cover
Comprehensive cover
combines the elements of own damage protection and third party insurance protection.
- The own damage section
protects your cycle against loss or damage. This would include accidental damage
arising out of the use of the vehicle theft and vandalism.
- The third Party section
of the policy provides cover up to $5 million for your liability to passengers
or third party injury and an inner limit of $500,000 for damage to third party
property. Legal fees relating to defending any court action are also covered as
long as we are aware of them and have agreed that they are necessary to defend
the action.
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Third
Party only cover (Liability )
If you are legally responsible for an accident, then you are also legally responsible
for the damages or injury that you cause. The third Party section of the policy
provides cover up to $5.0 million for your liability for third party injury and
up to $500,000 for damage to third party property. Legal fees relating to defending
any court action are also covered as long as we are aware of them and have agreed
that they are necessary to defend the action.
If you are uninsured, you will be charged with driving without insurance, and
you may be fined. You may also have your driver's license suspended.
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Your
driving record
The policy premium is partly based on your driving record. This means the number
of years you've been licensed to drive, your previous insurance experience, and
your number of convictions or accidents (in the last 5 years.) you have had. If
you drive safely and defensively are accident free and have no convictions, your
premium will be lower than if you've had a conviction or accident. Most insurance
companies will reward claims free driving by giving the insured driver a No Claims
Discount (NCD) for each year they are claims free. Your driving experience will
be reflected in the current NCD you are enjoying. This NCD adds up and could mean
as much as 20% off the premium. Most insurance companies will accept proof of
your driving experience from your previous insurer. If you have a legitimate gap
in your insurance track record, the insurance company will take this into consideration
when calculating your automobile insurance premiums. In a nutshell, the better
your driving record, the lower your insurance rates.
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Your Cycle
How do Insurance companies establish premiums for your cycle? The simple answer
is that the premium for the cycle is based upon two factors. The actual claims
experience of the makes and models of cycles are looked at to establish a part
of the premium. This means a check is made into repair costs, the rate of injury,
and the likelihood the cycle may be stolen. The other component is the Motor Dealer's
suggested replacement cost of the cycle. These two factors are combined and a
premium is calculated. It goes without saying that if you own an expensive cycle,
repair costs can be high. This can also mean you end up paying a higher premium.
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The
Cover you Buy
When you purchase cycle
insurance, you select the cover you want and sometime you can select different
excess values. The cover you select will have a bearing on the premium you will
pay. Comprehensive cover will be more expensive than third party only cover because
the insurance company will pay for accidental damage to your vehicle. Third party
cover does not include cover for your vehicle. The value of your vehicle will
also impact on the premium for comprehensive cover. The more expensive the cycle
the higher the premium will be.(see the paragraph above). The insurance company
is assuming more financial risk if you're involved in an accident or claim. If
you have an older cycle, you might want to consider only buying the Third Party
only cover. After all, the cycle is probably not worth the additional premium
cost.
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Work
on your driving record
This is an easy, yet
effective way to bring down your insurance costs. Build a consistent accident
and claims free track record with an insurance company and you will see your premiums
reduce. Your Policy Sum Insured: Comprehensive Cover only: We encourage you to
review the policy sum insured each year if you have a comprehensive policy. As
you know, the sum insured is a factor that helps determine the premium. The rule
of thumb is that the current sum insured should represent the current replacement
value of that vehicle. This means that you need to consider the cost of the vehicle
as new at the time of renewing the policy and then take off the appropriate amount
of depreciation. General industry practice is a reduction of 15% for the first
year and then 10% each year thereafter. The resulting amount will represent the
approximate replacement value at that time. Please remember: if you have any special
treatments on the vehicle, paint job or details you need to add these items into
the value you select. Our Make/Model table in Motor E-surance site will assist
you with a suggested insurable value for a standard vehicle.
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Review
your cover
If you have an old
cycle, it may not be worth having comprehensive cover at all.
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Take
advantage of discounts
BF&M recognises Project
Ride by giving the successful participants a further 10% reduction in their premium.
A 7.5% reduction in the premium for Comprehensive cover
is offered to those cycle owners who install an approved cycle alarm. For more
information, please contact us 295-5566 or fill out an information
request form.
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Further
Benefits of the BF&M Policy
We recommend U-Marking
your cycle even if you do not take out comprehensive insurance. BF&M provides
this service free of charge to policyholders.
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