Insurance??

damoC

I've gotten my renewal through for the bike. Obviously I have been shopping around and don't know which to go for.
Do I A) go for the renewal at £40 a month over 11 months with a £450 excess, or

Go for the cheaper one at £35 a month over 10 months with a £850 excess.

Both are fully comp with breakdown, legal, and personnal accident cover. Also it's for a motorcycle I ride everyday.

facade

Do you intend to have multiple crashes worth claiming for?

Say there is £1000 damage to your 'bike when you drop it on a corner. If you have policy A you get £650. With policy B it might not be worth claiming for only £150, as your policy will increase, and you lose your no-claims. (But of course, you must tell the insurer, so you might as well claim.....)

Otherwise it is £440 versus £350.

Aretnap

It depends on whether you plan to have any accidents really. If you write the bike off you'll wish you'd gone for the policy with the lower excess. If you have a claim free year you'll wish you'd gone for the cheaper one. So do you feel lucky?

Nobody can tell you how your year is going to go, so nobody can tell you which is better. However simple maths says that you'd have to be making a significant claim, on average, at least every four and a half years for the lower excess to be better value.

There are one or two other things to consider though - for example whether you can afford to pay the excess (or can borrow the money to pay it). Remember that your insurer won't carry out repairs until you pay it, so if you can't scrape the money together you'll be without a bike until you can. If that's not a risk you can afford to take then you should make sure that you choose an excess which you can afford to pay at short notice.

AdrianC

damoC wrote: »

...£40 a month over 11 months...
...£35 a month over 10 months...

Remember - you are paying monthly, but you are buying an ANNUAL policy. You are then taking out a finance product, which will almost certainly not be 0% interest, to spread the premium over the year.

You are looking at policies which are £90 difference in price, not a fiver.

forgotmyname

As above pay in full and save money. You could be paying 15% - 36% interest..