The popularity of electric motorcycles (e-bikes) and scooters, increasing urbanisation, and the availability of higher-value motorcycles are transforming the motorcycle landscape.

There are implications for insurance, too.

Learn what's changing and what your clients with prestige motorcycles need to know.

Lean, green machines

In the last five years, Australian urban dwellers have embraced electric motorcycles (e-bikes) and scooters as a carbon-efficient way to reduce commuting time, dodge traffic jams and enjoy the outdoors.

"We're seeing a lot of new models entering the Australian market, particularly from Chinese manufacturers," says Tom Hall, Senior Technical Underwriter at Dawes.

"Some new models look like they're from the far-off future, and a lot of insurers and motor underwriting agencies aren't even sure what they are – which means people are facing challenges insuring them."

Dawes, however, has the expertise and appetite to arrange cover for e-bikes and e-scooters.

"We can arrange cover for almost any motorcycle as long as it's for private on-road use," says Tom.

Increasing urbanisation

Increasing urbanisation has also made apartment living more appealing. However, communal parking lots connected to apartments often bring their own challenges.

Increased theft exposure and incidental claims for motorcycles being knocked over are some of the most common.

"While Dawes didn't always have much appetite for communal parking, we've changed how we underwrite communal parking because so many bike owners now have shared parking spaces," says Tom. "Garages or caged parking spots are still the safest place to store motorcycles, but we understand that's not always possible. We do suggest that riders using communal car parks also fit their motorcycle with an appropriate lock and think about how the motorcycle is parked in their space. Something as simple as parking it in front of the car for example, can greatly reduce your client’s exposure."

High-end and modified motorcycles

With motorcycle technology becoming more sophisticated and limited-edition motorcycles rising, the average price tag on new motorcycles is also increasing.

"High-end Ducatis are now in the $60–70,000 range, with big Harley Davidsons often pushing past $50,000, particularly with some options," says Tom.

While these high-sum insured motorcycles may be outside many insurers' risk appetite, Dawes, as a specialised insurance underwriting agency, may be able to arrange cover for them.

"We're happy to discuss the value of high-sum insured and collectible motorcycles, as we understand these are not your run-of-the-mill everyday motorcycles Tom says.

Many motorcycle enthusiasts modify their cycles to increase performance or create a different look.

"At Dawes, we understand that a person's motorcycle is an extension of their personality," explains Tom.

"We're happy to arrange cover for modified motorcycles on a case-by-case basis, and our underwriters will often ask for photos or spec lists to better understand the type of motorcycle being insured. From a Honda with a slip-on muffler to an individually constructed chopper, we have the flexibility and expertise to help."

Tom points to a recent example where a broker approached the team whose customer had bought a custom-made motorcycle from Keanu Reeves' motorcycle company, ARCH Motorcycles.

"The customer couldn't find insurance anywhere," Tom says. "The broker made a quick call to us – we knew what it was and its worth and were happy to arrange cover for it."

Helping brokers navigate the new landscape

In addition to excellent policy wording and a strong appetite for arranging insurance cover for a full range of motorcycles, Dawes offers personalised, expert service.

"We're not a bot – we're actual underwriters who are motorcycle enthusiasts ourselves," says Tom. "Brokers can talk to us about the motorcycle, and we can be flexible and tailor the cover to suit and protect the client."

To learn more about arranging insurance for motorcycles, visit the Dawes website or call the team at 1300 188 299.

Dawes Underwriting Australia Pty Ltd t/as Dawes Motor Insurance (ABN 18 050 289 506, AR No. 342982) (‘Dawes’) is an Authorised Representative of SGUAS Pty Limited (ABN 15 096 726 895, AFSL 234437) (‘SGUAS’) and acts for the insurer, Allianz Australia Insurance Limited (ABN 15 000 122 850, AFSL 234708) (‘Allianz’). Consider the relevant Product Disclosure Statement and Target Market Determination available by contacting Dawes on 1300 188 288 or visiting www.dawes.com.au, before deciding if it is right for you. This article has been prepared by Dawes. Any advice here does not take into account individual objectives, financial situation or needs. Terms, conditions, limits and exclusions apply.
Information contained in this article is accurate as at 13 January 2025 and may be subject to change. In some cases information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Dawes, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.