12-02-2018, 01:28 PM
Insurance requirements depend in part on local laws, so it can be hard for an outsider to comment. In Australia it's mandatory for every registered vehicle to carry third-party injury insurance so that, theoretically at least, everybody is insured against harm they might cause other people. Although the insurance is provided by private providers, the premiums are collected by government at the time of registration and you can't renew the letter without the former.
Property and vehicles—your own and others—are not covered and that's where you have to start making a call on whether the risk/reward ratio is worth it. Personally, I would always carry third-party property insurance to make sure I had some protection against ploughing into someone's Rolls Royce, but I'm fast reaching the point where insuring the CB1100 against damage I may do it isn't worth the premium. In other words the risk is worth bearing as I could probably (just) afford to buy another bike and the accumulated cost of premiums isn't worth it for any benefit I'd get.
The other thing I suspect many people forget with insurance is that it isn't 'free money'. Every claim you make has to be financed somehow and the more claims paid out that are greater than the premiums paid, the more likely it is that the insurance company will have to raise more cash in future. Guess who they get it from? If you can afford it, self insurance is likely to work out cheaper and, in some areas of life, is likely to make the thoughtful work harder to manage their risks.
Property and vehicles—your own and others—are not covered and that's where you have to start making a call on whether the risk/reward ratio is worth it. Personally, I would always carry third-party property insurance to make sure I had some protection against ploughing into someone's Rolls Royce, but I'm fast reaching the point where insuring the CB1100 against damage I may do it isn't worth the premium. In other words the risk is worth bearing as I could probably (just) afford to buy another bike and the accumulated cost of premiums isn't worth it for any benefit I'd get.
The other thing I suspect many people forget with insurance is that it isn't 'free money'. Every claim you make has to be financed somehow and the more claims paid out that are greater than the premiums paid, the more likely it is that the insurance company will have to raise more cash in future. Guess who they get it from? If you can afford it, self insurance is likely to work out cheaper and, in some areas of life, is likely to make the thoughtful work harder to manage their risks.