【Motorcycle Insurance 2025】The difference between triple insurance and full insurance｜Premium reference for learner license and P license｜7 factors affecting premium

According to Section 4 of the Motor Vehicle Insurance (Third Party Risks) Ordinance (Cap. 272), all motorcycles driving on the road must be covered by valid third party liability insurance (three insurances). The coverage includes "third party injury or death liability" and "third party property damage" to protect the insured from the legal liability for third party injury or death caused by an accident, and the statutory coverage amount is at least HK$100 million.

In addition, car owners can also purchase more protection according to their personal needs, such as third-party insurance including fire insurance and theft, or even comprehensive insurance (full coverage) to protect against losses caused by accidental damage.

No Claim Discount(NCD) refers to a premium discount given to the insured if he/she has not made any claims during the past policy period. The maximum discount is 30% of the premium. The NCD is calculated as 0% in the first year and increases annually to a cap of 30%. However, it is worth pointing out that NCDs from car insurance cannot be transferred to motorcycle insurance. Also, like commercial vehicles, the NCD cap for motorcycles is only 30% while that for private cars is 60%.

Different from learning to drive a private car, a motorcycle driver with a learner's license can practice driving alone on a motorcycle with a learner's license on non-restricted roads. Therefore, some learner motorcyclists will buy a motorcycle for practice. So insurance companies will not only accept holders of full driving licences and provisional driving licences (P licences) to purchase motorcycle insurance, but will also accept holders of learner driving licences (learner’s licences) to purchase motorcycle insurance.

For learner license holders, the premiums for motorcycle insurance are generally higher, and insurance companies will determine the premiums based on factors such as the model and horsepower. Therefore, learner license holders are advised to choose a model with a large cylinder volume for learning purposes to avoid excessively high premiums.

Age of the insured / playing experience

Young or less experienced policyholders will be considered by insurance companies to be more likely to get into accidents, so they will be charged higher premiums than usual.

Types of Driving License

The insurance premiums for motorcycles for holders of a full driving licence, a provisional driving licence (P-licence) and a learner’s driving licence (Learner’s Licence) will also be different, with the premium for a learner’s driving licence being the highest among the three.

Vehicle Type

Although most people think that sports cars and motorcycles are better than sheep, the insurance premiums for sports cars and motorcycles are naturally higher. But apart from that, it still depends on the displacement of the insured motorcycle. If you compare the premiums of a 750 c.c. SUV and a 250 c.c. street bike, the premium for the street bike will be lower than that of the SUV.

Insurance Type

Third Party Liability Insurance (Triple Insurance) only protects the insured against legal liability for third party injury or death caused by an accident, while Comprehensive Insurance (Full Coverage) provides coverage for losses caused by damage due to an accident, and some even include towing costs, so the premium is higher than Triple Insurance.

Deductible

Also known as the "deductible", it is the amount that the insured needs to bear when making a claim. The higher the deductible, the lower the premium. Note that excesses are calculated cumulatively. If there are multiple excess items on the policy, such as "young driver excess", "unnamed driver excess" and "inexperienced driver excess", if the driver meets the above conditions at the same time, the excesses will be calculated cumulatively.

NCD

The full name is No Claim Discount, and some insurance companies may call it NCB (No Claim Bonus). If the insured has not made any claims during the past policy period, he will receive a premium discount, and the discount will increase by 10% each year. The maximum discount for motorcycle insurance premiums is 30%.

Vehicle Purpose

When taking out insurance, the insured must declare whether the vehicle will be used for commercial purposes, such as the takeaway business which has become popular in recent years. As a commercial motorcycle, the insurance premium will be higher than that of a motorcycle for personal use.