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What the New Insurance Code Could Mean for Riders

Why cover should be part of your finance checklist

What the New Insurance Code Could Mean for Riders?w=400

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Australia’s general insurance sector is moving towards a significant consumer-protection update, with the Insurance Council of Australia expecting a two-year transition for its redrafted General Insurance Code of Practice.
The draft code, released for public feedback in late June 2026, is designed to become enforceable through insurance contracts once it clears the required approval steps.

For motorbike buyers, this is not just an insurance story. It matters because insurance can be a major part of the real cost of getting on the road, particularly when a rider is arranging secured motorbike finance. Many lenders want the bike protected for the life of the loan, so the quality of the cover, claims process and insurer communication can affect a rider’s financial confidence as much as the advertised interest rate.

The proposed changes include stronger expectations around claims handling, clearer standards for expert reports, better support for vulnerable customers and automatic acceptance of some home and motor claims when a decision has not been made after 12 months, subject to exceptions. If implemented well, those measures could make the claims process less confusing for riders dealing with theft, accident damage or complex repair assessments.

The update also reflects a broader shift in financial services: customers increasingly expect transparency, speed and accountability. That is especially relevant for younger riders, first-time borrowers and applicants with mixed credit histories, who may already feel they are navigating a lot of fine print across loans, insurance, registration, protective gear and ongoing running costs.

However, riders should treat the draft code as a developing change rather than an instant fix. Consumer advocates have already raised concerns about whether some protections are strong enough, particularly for people experiencing vulnerability. The consultation process remains important, and the final version may differ from the current draft.

The practical takeaway is simple: do not separate the bike price from the total ownership cost. Before signing a loan contract, compare the repayment, insurance premium, excess, policy exclusions and likely claim requirements together. A cheaper monthly loan can still feel expensive if the insurance excess is high or if the policy leaves gaps around modifications, accessories or rider use.

It is also worth modelling repayments with realistic insurance and running-cost assumptions before committing. As insurance standards evolve, informed riders will be in the best position to choose finance and cover that work together, rather than discovering the true cost after the bike is already in the garage.

Published:Tuesday, 30th Jun 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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