ACC Won't Cover Your Bike
Motorcycle insurance NZ
Is your bike properly covered?
ACC handles your personal injuries. It does not handle your bike. In New Zealand, motorcycles are typically covered under the same type of motor vehicle policy as cars, though the terms, limits, and conditions often differ for bikes. Kapi Insurance helps you find the right cover for your motorcycle through trusted insurers. We review the policy wording, check for gaps, and make sure your motorbike, your riding gear, and your liability as a rider are properly addressed.
What is motorcycle insurance?
Motorcycle insurance covers the financial cost of damage to your motorbike, theft, fire, and your legal liability for property damage you cause to other people's vehicles or buildings. In New Zealand, motorcycles are generally insured under a motor vehicle policy, the same type of product used for cars. However, the terms, excess amounts, and some benefit limits may differ for motorcycles compared to cars. The Accident Compensation Corporation (ACC) covers personal injury from riding accidents, including treatment costs and rehabilitation for the rider. ACC does not pay a cent towards repairing or replacing your bike. It also does not cover property damage you cause to someone else's car, fence, or building. That gap is exactly what motor vehicle insurance for your motorcycle fills.
Motorbikes face risks that cars do not. They are easier to steal, more exposed to weather damage, and more likely to be written off in an accident. Theft is a particular problem in Auckland and Hamilton, while Wellington riders deal with high winds and exposed coastal roads. Even a relatively minor collision can bend forks or compromise the frame, turning a low-speed drop into a total loss. Waka Kotahi (NZTA) requires riders to progress through a graduated licence system (learner licence, restricted licence, full licence), and your position on that ladder affects both your premiums and policy conditions. Some policy benefits, such as uninsured motorist cover, may have different limits for motorcycles than for cars. There are generally three tiers of cover available: comprehensive, Third Party Fire and Theft, and Third Party only.
Types of motorcycle insurance available
Motor vehicle policies for motorcycles generally come in three levels: Third Party only, Third Party Fire and Theft, and comprehensive. The right choice depends on the bike's value, how you ride, and how much risk you as a rider are comfortable carrying yourself.
Third Party only
The most basic level of motorcycle cover. Third Party only typically covers your legal liability for property damage you cause to another person's vehicle or property while riding. It generally does not pay for damage to your own bike, whether that is a cracked fairing, bent forks, or a written-off frame. If an uninsured driver hits you, you may need to pursue them personally for costs.
Typically covers
- Damage to other people's vehicles
- Damage to third-party property (fences, buildings, etc.)
- Legal liability cover
Best suited for
Older or lower-value bikes where the cost of comprehensive outweighs replacement value. Also suits riders on a tight budget who want liability protection in case they damage someone else's property.
Third Party, Fire and Theft
This mid-tier option generally includes everything in Third Party only, plus protection if your motorcycle is stolen or damaged by fire. Theft is one of the most common motorcycle insurance claims, particularly in Auckland, making this a significant step up from basic liability. It typically does not pay for accidental damage from crashes or weather events.
Typically covers
- All third-party liability cover
- Theft of your motorcycle
- Fire damage to your motorcycle
- Attempted theft damage
Best suited for
Mid-value bikes where theft protection is a priority but the full cost of comprehensive is not justified. A solid middle ground for riders who garage their bike, fit an immobiliser or disc lock, and build up a no-claims bonus by riding claim-free.
Comprehensive motorcycle insurance
The highest level of protection generally available. Comprehensive typically covers accidental damage from collisions and drops, theft, fire, vandalism, weather, and storm damage. That may include damage to fairings, exhaust systems, and the frame itself. If the bike is declared a total loss, you may receive either the agreed value or market value payout depending on your policy terms. Some comprehensive policies also include cover for riding gear, accessories, and roadside assistance, though these may be optional extras or subject to sub-limits. Note that some benefit levels may differ from car policies. Fitting a ground anchor or approved immobiliser can help reduce your premium, and maintaining a no-claims discount keeps it low over time.
Typically covers
- All Third Party and fire/theft cover
- Accidental damage (collision, drops, low-sides)
- Weather and storm damage
- Vandalism
- Riding gear and accessories
- Windscreen and fairing damage
- Roadside assistance
Best suited for
New bikes, financed motorcycles (most lenders require it), higher-value machines, modified bikes, and any rider who could not afford to repair or replace out of pocket. The most popular choice among riders from Auckland commuters to Dunedin weekend tourers.
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What does motorcycle insurance cover?
This table shows what is typically included at each level. Exact inclusions vary between insurers, which is why it pays to have a broker review the policy wording.
| Cover feature | Third Party only | Fire and theft | Comprehensive |
|---|---|---|---|
| Third-party property damage | Yes | Yes | Yes |
| Legal liability | Yes | Yes | Yes |
| Theft of your motorcycle | No | Yes | Yes |
| Fire damage | No | Yes | Yes |
| Accidental damage / collision | No | No | Yes |
| Weather / storm damage | No | No | Yes |
| Vandalism | No | No | Yes |
| Riding gear (helmet, jacket, boots, gloves) | No | No | Optional |
| Windscreen / fairing damage | No | No | Yes |
| Modifications and aftermarket parts | No | Varies | Yes |
| Pillion passenger liability | Yes | Yes | Yes |
| Roadside assistance | No | No | Optional |
Motorcycle cover and the Accident Compensation Corporation (ACC) serve different purposes. ACC covers personal injury sustained by the rider in an accident, including treatment and rehabilitation. It does not pay for motorbike repairs, replacement, riding gear, or property damage you cause to others. A motor vehicle policy for your motorcycle fills those gaps. Keep in mind that while motorcycles are covered under the same policy type as cars, some benefits and limits may differ. Check the policy wording or ask your broker to confirm what applies specifically to your motorcycle.
Agreed value vs market value for motorcycles
This choice directly affects how much you receive if the bike is a total loss or stolen and not recovered. It matters more for motorcycles than many riders realise, because bikes depreciate differently to cars and modifications can significantly change the replacement cost.
Agreed value
You and the insurer agree on a fixed sum when the policy starts. If the bike is a total loss, you receive that amount less your excess, regardless of depreciation. This is especially important for classic motorcycles, modified bikes, and models that hold their value differently to mainstream machines.
Advantages
- Certainty: you know exactly what you will receive
- Protects the value of modifications and aftermarket parts
- No disputes about valuation at claim time
Considerations
- - Typically a slightly higher premium
- - The agreed amount needs to be reviewed at each renewal
Market value
The insurer pays what the motorcycle is worth on the open market at claim time, based on age, condition, kilometres, and comparable sales. Depreciation reduces your payout each year. For modified bikes, the market value assessment may not reflect what you actually spent on parts and labour.
Advantages
- Generally lower premium
- No need to set a value upfront
- Suitable for older bikes where depreciation has already occurred
Considerations
- - Payout decreases each year as the bike depreciates
- - Modifications may not be reflected in the market valuation
- - You may receive less than what you still owe on finance
As a guide, agreed value suits newer bikes, financed motorcycles, classic machines, and anything with significant modifications. Market value can make sense for older commuter bikes where the premium saving is worthwhile. At each renewal, we review the agreed amount to make sure it still reflects what it would actually cost to replace the motorcycle.
Factors that affect your motorcycle insurance premium
Premiums are calculated on a range of risk factors specific to motorcycles and riders. Knowing what drives the price gives you levers to pull when it feels too high.
Bike type and engine size (cc)
A 125cc commuter scooter costs far less to insure than a 1000cc sports bike. Engine capacity (cc) is a primary rating factor alongside bike category. Cruisers, adventure bikes, commuters, and mopeds all attract different rates. High-performance machines cost more because they are more expensive to repair (fairings, forks, exhaust systems) and are statistically involved in more severe accidents.
Rider age and experience
Younger riders under 25 typically pay higher premiums and face an additional age excess on top of the standard excess. Years of riding experience, a strong no-claims bonus, and a clean record all help bring the cost down. Every named rider on the policy is assessed individually.
Licence type
The graduated motorcycle licence system directly affects premiums. Riders on a learner licence or restricted licence pay more than those with a full licence. Some policies impose conditions on learner or restricted riders, such as LAMS approved engine capacity limits or pillion restrictions. Progressing through to a full licence can lower your premium and remove those conditions.
Storage (garage vs street)
A motorcycle kept in a locked garage overnight is significantly cheaper to insure than one parked on the street. Auckland has the highest motorbike theft statistics in the country, and bikes left outdoors in Wellington are exposed to constant wind and salt air damage. Fitting an approved immobiliser, disc lock, or ground anchor further reduces your risk profile. If you have secure storage, make sure your insurer knows about it. It can make a real difference to your premium.
Usage (commuting vs recreational)
A bike used for daily commuting covers more commuting kilometres and spends more time in traffic than one used for weekend rides. Insurers factor in annual mileage when calculating your premium. Higher usage means higher exposure to risk. Seasonal riders who store their bike over winter may be able to negotiate lower rates or a lay-up period.
Modifications and aftermarket parts
Aftermarket exhausts, performance upgrades, custom paintwork, crash bars, panniers, top boxes, and heated grips all affect the bike's value and risk profile. Aftermarket parts and modifications are common among riders across Auckland, Christchurch, and Hamilton, but they need to be declared and properly valued. Undeclared modifications can void a policy entirely. We help you get everything listed correctly.
Other insurance you might need
Many of our motorcycle clients also insure other vehicles and property. Bundling policies through a broker simplifies things and may unlock multi-policy benefits.
Car Insurance
Comprehensive, third-party, or fire and theft
Home Insurance
Protect your property and structure
Contents Insurance
Cover your belongings inside and outside the home
Boat Insurance
Protection for your boat on and off the water
Trailer Insurance
Cover for your trailer on the road and at home
Common motorcycle insurance questions
These are the questions motorcycle riders ask most often, from Auckland commuters to Christchurch weekend tourers. If your question is not here, request a callback and we will be in touch.
Do I need motorcycle insurance?
Motorcycle insurance is not legally required. The Accident Compensation Corporation (ACC) covers personal injury from riding accidents, but it does not cover property damage to your motorbike, your riding gear, or anyone else's vehicle or building. If you cause an accident as a rider, you are personally liable for the other party's repair costs. If your bike is stolen from your Auckland garage or written off on a Wellington commute, there is no government safety net to replace it.
Does ACC cover my motorbike?
No. ACC (the Accident Compensation Corporation) covers personal injury sustained by a rider in a motorcycle accident, including treatment costs and income support while you recover. It does not pay for property damage to your motorbike, replacement of riding gear like helmets and jackets, or repairs to anyone else's vehicle or building. You need a separate motorcycle insurance policy to cover those costs.
What is the difference between motorcycle and car insurance?
In New Zealand, motorcycles are typically insured under the same motor vehicle policy type as cars, with the same core structure: third party, third party fire and theft, or comprehensive. The difference is in how risk is assessed and what limits apply. Motorbikes are more exposed to theft, weather damage, and total loss in accidents. Rider experience, licence type, engine capacity (cc), and storage all weigh more heavily. Insurers also rate differently by bike type. A 300cc commuter or scooter generally attracts lower premiums than a 1000cc sports bike or adventure bike. Some policy benefits may have different limits for motorcycles, such as lower caps on uninsured motorist cover. Riding gear cover, modifications such as aftermarket exhausts and crash bars, and pillion passenger liability are also considerations specific to insuring a motorcycle.
Does my policy cover riding gear?
Some comprehensive policies may include cover for helmets, jackets, gloves, and boots as standard. Others offer it as an add-on or exclude it entirely. Quality riding gear can cost a lot to replace. The same applies to accessories like panniers, a top box, or heated grips fitted to the bike. It is important to check the policy wording for sub-limits on gear and accessories, as these limits may be lower for motorcycles than for other vehicle types. We review this with every motorcycle client to make sure there are no surprises.
Am I covered on a learner or restricted licence?
Most insurers will cover riders on a learner licence or restricted licence, but you will typically pay a higher premium and a larger excess, including an age excess for riders under 25. Some policies impose conditions, such as not riding at night, not carrying a pillion passenger, or limiting you to LAMS approved (Learner Approved Motorcycle Scheme) bikes under a certain engine capacity. The graduated licence system (learner, restricted, full licence) is a key rating factor. Always declare your licence type accurately. If you do not, a claim could be declined.
What about scooters and mopeds?
Scooters and mopeds can be insured under motorcycle policies, alongside commuters, cruisers, adventure bikes, and sports bikes. Smaller mopeds under 50cc may attract lower premiums due to their lower speed and replacement cost, but they are still vulnerable to theft. The same cover types apply: third party, fire and theft, or comprehensive. We can source the right level for your scooter or moped regardless of engine capacity.
Does insurance cover track days?
Standard motorcycle insurance policies exclude racing, track days, and competitive events. This includes circuits like Hampton Downs and Taupo Motorsport Park. If you ride on track regularly, you need a separate track day policy or a specific endorsement. Riding an uninsured bike on a track means any damage comes entirely out of your pocket.
Can I get cover for a modified bike?
Yes, but you must declare all modifications to the insurer. Aftermarket exhausts, performance upgrades, custom paintwork, crash bars, panniers, and heated grips all affect the bike's value and risk profile. Undeclared aftermarket parts can void your policy entirely. We help you get each modification properly valued and included so your cover reflects what the motorbike is actually worth.
How do I reduce my motorcycle insurance premium?
Store the bike in a locked garage rather than on the street. Fit approved anti-theft devices such as an immobiliser, disc lock, or ground anchor. Increase your voluntary excess if you can afford to pay more at claim time. Build up a no-claims bonus (also called a no-claims discount) by riding claim-free. Reduce your annual mileage or commuting kilometres where possible. Choose agreed value at a realistic level. Bundling motorcycle insurance with other policies through a broker can also help.
Find out if your bike is actually covered
Most riders assume their policy covers everything until they need to claim. Tell us what you ride, your licence type, your annual mileage, and where you keep your bike. We will come back with a straight answer on what cover you need and what it should cost. Takes about three minutes. No obligation, no fees.
No fees. No obligation. Takes about 3 minutes.