Motorcycle insurance – in its most literal terms – is an agreement of financial cover against loss or damage to any vehicle that has two wheels and is powered by a mechanical engine. Motorcycles also include those vehicles which include a sidecar or a trailer, and even 3 wheeled vehicles can be classed as motorcycles – if two of those wheels are on the same axle.

The Road Traffic Act (1988) made it obligatory for motorcycles in the UK to have motorcycle insurance. Essentially, there are three basic options of motorcycle insurance available to choose from. To begin with, there is comprehensive coverage. This is the most expensive type of coverage available and provides the highest type of protection possible to motorcycle riders. It provides coverage for damage or loss of the policyholder's motorcycle regardless if it is accidental or intentional. Additionally, it includes everything that is included in the third party fire and theft policy.

The next level of cover is Third Party Fire and Theft – commonly referred to as TPFT – and covers all the basic requirements of the 1988 Act (plus a little more). If there is an accident and the policyholder is at fault, the insurer will pay for all repair costs and loss of income to involved third party, including medical bills. The policyholder won't be paid for repairs or injury incurred to themselves, however they are covered in the event of theft or fire damage to their motorbike.

Finally the lowest level of cover available is simply called Third Party Only, and as the name suggests, covers the same as TPFT without the fire and theft coverage. It basically means that the rider is covered for any damage or loss of income to others in the event of an accident that is their fault, but offers no compensation for loss or damage to the rider themself or their property.

Obviously as a biker it is most beneficial to have the required coverage for peace of mind at the lowest possible price, and there are a number of steps you can take to try to reduce your insurance premium. The most effective method is through the no claims bonus, where your insurer will provide a discount based on the number of years you have gone without needing to make a claim. The more years no claim bonus, the bigger the discount – in some cases as high as 50%.

There are other steps riders can make in order to lower their bike insurance premiums. For example, limiting their amount of use of the motorcycle and perhaps using public transport on occasion could help the biker to qualify for a limited mileage discount (in the insurers eyes, the less time spent on the road the less likely the chances of an accident). In terms of the motorcycle itself, it is usually more favourable to avoid the more high-powered machines and go for a more standard motorbike. Insurers can often be put off by large sports bikes due to the higher risks they carry. One final premium-cutting measure would be to increase the security of your motorcycle so as to reduce the risk of theft. Locking it away in a garage, or if that's not possible – purchasing a heavy duty chain and padlock, will certainly help to keep your motorbike insurance costs to a minimum.

Raphael Waterstone writes more about motorcycle insurance at Motorbike Insurance Online, where you can find articles and resources on various subjects such as courier motorbike insurance