Whether it’s the sense of freedom on the road, how much easier it can be to find parking, or simply the joy of travelling on two wheels rather than four, motorcycles offer benefits that appeal to a wide range of riders.
Another big drawcard is that motorbikes are typically more fuel efficient and, therefore, cheaper to run than cars. But what about motorcycle insurance? If running costs are a key factor for you and you’re wondering how much motorcycle insurance is likely to set you back, read on.
In this guide, we’ll look at how much motorcycle insurance typically costs in Australia, some factors that can influence motorcycle premiums, what insurance is legally required around Australia, and some tips on how to help reduce the cost of motorcycle insurance.
How much is motorbike insurance?
As with cars, the cost of insurance for a motorcycle varies depending on a range of different factors,2 but at Youi the average premium for a motorbike insurance policy is around $718 per year.1
What can affect the cost of motorbike insurance?
While average motorcycle insurance costs can give you a ballpark figure, your actual premium will depend on several factors that are specific to you and your bike. Some of the key factors that can determine how much you’ll pay are listed below.
The level of cover you choose
Comprehensive insurance is generally the most expensive type of motorcycle insurance, because it provides the highest level of cover.2
At Youi, the events covered by Comprehensive motorcycle insurance include:3
- Accidental damage to your motorbike and other people’s vehicles and property – even if the accident is your fault
- Theft
- Intentional damage
- Damage caused by fire or a severe weather event.3
And, while some insurers may charge extra to add motorcycle breakdown insurance to a policy,4 Youi’s Roadside Assist is automatically included with our Comprehensive insurance.3
Other levels of motorcycle insurance include:3
- Third Party Fire & Theft which covers your motorcycle for theft and fire damage, plus any accidental damage it causes to someone else’s property, including their vehicle.
- Third Party Property Only which only provides cover for damage your bike causes to someone else’s vehicle or property.3
The type of motorcycle you’re insuring
Generally speaking, more expensive motorcycles can cost more to insure than older motorbikes with readily available parts.2,5
Other factors that play a role in determining how much motorcycle insurance costs include:2
- Make and model
- Engine capacity
- Year of manufacture
- Any modifications that have been made.2
For example, the make of motorbike that has the lowest average annual insurance premium with Youi is Peugeot, at around $298 per year. In contrast, on average, it costs around $900 for Yamaha motorcycle insurance, $712 for Honda motorcycle insurance and $671 for Harley Davidson motorcycle insurance with Youi.1
How much your bike is insured for
If you decide to take out Comprehensive motorcycle insurance, you may be able to choose whether to insure your bike for an Agreed Value or a Market Value.4
- Agreed Value is a fixed amount decided by you and your insurer and gives you more certainty about the payout you’d receive if your motorbike were stolen or written off as a total loss3,4
- Market Value reflects the amount your motorcycle would have sold for immediately before it was stolen or written off.3,4
Market Value insurance policies typically cost less in premiums than Agreed Value policies, because payouts factor in the bike’s depreciation over time.4
Your age and riding experience
Motorcycle insurance premiums are typically lower for older riders with more experience on the road, than for younger riders who’ve only recently got their licence and bought their first motorbike.2
Why? It’s because young riders with less experience are typically considered to be a higher risk to insure, so premiums tend to reflect that.6
Where you park at night
Whether you park your motorbike on the street or in a garage overnight can impact your motorcycle insurance premium. Crime rates in the suburb where your motorbike is usually stored may also affect your premium.2
Your excess and payment frequency
If your motorcycle insurance provider allows you to choose your excess – which is the amount you pay towards a claim after it has been accepted – opting for a higher excess amount could lower your premium. Just keep in mind that if you do need to make a claim, having a higher excess means you could face larger out-of-pocket costs.2
You might also be able to lower the cost of your motorcycle insurance by paying the premium in a yearly lump sum, instead of paying it in monthly or quarterly instalments.4
Any optional covers you’ve added
Depending on your level of cover, you may be able to add some optional cover to your policy, for an extra cost.7
“At Youi, Comprehensive and Third Party Fire & Theft motorcycle insurance already includes cover for riding gear, such as helmets, boots and riding jackets, as standard, up to $1,000 per claim,” says Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
“You also have the option to increase this cover to include riding gear and personal items, and increase the limit up to $5,000 per claim.”3
Is motorcycle insurance compulsory in Australia?
Yes. Compulsory Third Party (CTP) insurance – which covers you against compensation claims if you injure or kill someone in an accident – is mandatory for all registered motorbikes in Australia, regardless of whether you own a road bike, scooter or dirt bike.2
Here’s a more detailed look at how to organise CTP insurance depending on where you live:
| State or Territory | How to buy CTP insurance |
| CTP motorcycle insurance in NSW | You need to buy CTP insurance, known as a Green Slip, before you register your motorbike in NSW.7 Youi offers Green Slip insurance for NSW riders. |
CTP motorcycle insurance in Qld | You choose your CTP insurer and pay the premium when you pay your motorbike registration fee.9 |
| CTP motorcycle insurance in SA | You pay for CTP insurance when you renew your motorbike’s registration.10 Youi offers CTP insurance for SA riders and you can nominate us as your future SA CTP insurer anytime via EzyReg. |
CTP motorcycle insurance in WA | CTP insurance is included in your motorcycle’s registration fee.11 |
| CTP motorcycle insurance in Vic | CTP insurance is called the Transport Accident Commission (TAC) charge and it’s included in your motorcycle’s registration fee.12 |
CTP motorcycle insurance in ACT | CTP insurance is called Motor Accident Injuries (MAI) insurance,13 and it’s included as part of your motorbike’s registration fee.14 |
| CTP motorcycle insurance in Tasmania | CTP insurance is included as part of your motorbike’s registration renewal fee.15 |
But, while the answer to “Do you need insurance for a motorcycle in Australia?” is yes, it’s important to remember that compulsory CTP insurance doesn’t cover damage to your motorcycle – or other people’s vehicles or property if you have an accident that’s your fault. That’s where optional types of insurance cover comes in.2
Youi offers Comprehensive motorcycle insurance, Third Party Fire & Theft motorcycle insurance and Third Party Property Only motorcycle insurance in every state and territory, apart from the Northern Territory.
Now that you know a little more about how the cost of motorcycle insurance is calculated, you might like to consider starting a motorbike insurance quote for a clearer picture of what your premiums might be, based on your specific bike, lifestyle and circumstances. With Youi, you can start a quote online or give us a call on 13 9684.
1 When we display the indicative Comprehensive premium range for a motorcycle make and model, or offer a comparison of how a model’s annual premium compares to Youi premiums for all models for that motorcycle brand, we adopt some important guidelines: The information displayed is based on Youi internal data for Comprehensive policies sold for the make and model between 2025-08-28 and 2026-02-28. To improve how useful our data is, we only calculate our average comparisons on models where Youi data is available on at least 10 sold Comprehensive policies for that model. As you would expect, we get some higher or lower premiums based on different risk ratings, so the indicative range does not represent all Youi customers. 80% of applicable Comprehensive motorcycle premiums purchased by our customers fell within or below the indicative premium range shown. Premiums and offers to insure are subject to rating & underwriting, and your own individual circumstances.
2 Source: Canstar – How much does motorcycle insurance cost in Australia? June 2025
3 Exclusions, limits and additional fees may apply. For full details, see the Motorcycle Insurance PDS.
4 Source: Moneysmart – Choosing car insurance
5 Source: Canstar – How is car insurance calculated in 2025?, January 2025
6 Source: CHOICE – Best car insurance for drivers under 25, September 2025
7 Source: Canstar – Motorcycle insurance, April 2025
8 Source: NSW Government State Insurance Regulatory Authority – Compulsory Green Slip insurance, April 2025
9 Source: Motor Accident Insurance Commission – About CTP insurance, November 2024
10 Source: CTP Insurance Regulator – About CTP insurance
11 Source: Insurance Commission of Western Australia – Insurance Policy
12 Source: Transport Accident Commission – Transport Accident Charge
13 Source: ACT Government – Your MAI insurance
14 Source: ACT Government – Learn about your MAI insurance policy
15 Source: MAIB – How to pay your MAIB insurance premium
