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Motorcycle insurance excess. Your smart guide

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If you’re shopping around for motorcycle insurance, it helps to understand what you’re getting into – and it also helps you to ensure you’re comparing apples with apples before deciding on one policy over another.

Take motorbike insurance excess, for instance.

Most insurance policies have a standard excess, which is the amount you pay for each claim you make against that insurance.

At Budget Direct Insurance the standard policy excess for motorcycles is $500. This means if you make a claim for $1,000 worth of damage to your motorcycle, you will pay $500, and Budget Direct Insurance will pay the remaining $500.

Obviously, if there is damage to the motorcycle that costs $500 or less to repair, you’re the person picking up the tab.

What is the point of motorcycle insurance excess?

Excess payments aim to reduce the amount of small claims that are made to the insurer - keeping premiums down - and to hand some responsibility back to the motorcyclist.

Can I change the excess I pay?

The good news is that most insurers allow you to adjust your excess amount depending on your budget and your circumstances.

If basic excess is $500, you may opt to reduce this amount in your policy. In the event of an accident you don’t have to pay so much towards the cost of repairs. But, lowering your excess comes at a price. The lower the excess the higher the premium.

When would I pay higher excess?

If you’re young and or inexperienced your excess will most likely be set at a higher rate.

You also need to look at amounts that are added onto your basic excess. These additional excess amounts are related to windscreens, and young and or inexperience riders using your bike.

If you have anyone riding your motorcycle who is below the age of 25 or has less than two years riding experience, then read your policy to look for the additional excess.

Voluntary motorbike insurance excess

Some insurance companies allow you to opt for voluntary excess - the amount of excess you pay isn’t decided by the insurer, it is set by you.

In the event of an accident you would have to pay both the compulsory excess set by the insurer and the voluntary excess, set by you. This might be an option if you consider yourself to be a very safe motorcyclist.  You have to be prepared to take on the risk of a higher payout if you make a claim.

Be aware that there may be conditions that add more excess for a claim. The table below details some.

Type of Excess

On Each and Every Claim**

Policy Excess


Additional Excess

- Theft Outside Singapore

50% of Market Value of your Motorcycle at the time of Theft (up to maximum of $2,000)

- Medical Expenses


- Named Rider below 25 years old


- Named Rider with less than 2 years’ valid driving licence


For each excess condition, the excess amount is added to the total. Here’s an example:

If a claim involves a Named Rider who is 24 years old and has held a valid driving licence for less than two years, the total excess payable would be $1,500. This amount is calculated as follows:

Type of Excess

On Each and Every Claim**

Policy Excess


Named Rider below 25 years old


Named Rider with less than 2 years’ valid driving licence




Other than choosing to pay an extra premium to reduce the policy excess to zero, if the claim is for an accident with another Singaporean registered vehicle, and in the assessment of the insurance company the accident was wholly not your fault, the excess will be waived.

It really does pay to ride safely!

Insurance should be quick and easy to buy, at a price that’s affordable. That’s only fair.

Budget Direct Insurance
Get good, cheap online motorcycle insurance without cutting corners on your cover.

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