Motorcycle insurance rates are influenced by numerous factors, calculated through complex algorithms. While the exact formula remains proprietary, several known variables significantly affect your premium.
In this post, I will explore these factors and provide tips on how you can adjust them to find an insurance plan that suits your budget.
Age
Younger riders are often seen as engaging in riskier behaviors such as stunting, speeding, and ignoring traffic rules.
As a result,Insurance companies are very aware of these tendencies and adjust premiums accordingly.
Generally, with increased experience, insurance rates tend to decrease. For example, 18-year-old riders typically pay significantly higher premiums compared to 40-year-old riders.
This trend is similar to car rental companies, which often charge lower rates for drivers who are 25 or older due to their perceived lower risk.
Driving and Riding History
Just like with any motor vehicle insurance, your driving history significantly impacts your perceived risk and liability.
Accumulating demerits and speeding tickets signals to insurance companies that you may not be a reliable or safe motorist. At-fault claims and convictions on your record will heavily influence your rates, as drivers with poor records often repeat their mistakes.
While you can’t control factors like your age, it’s important to remember that combining a history of poor driving with the inherently high-risk nature of motorcycles won’t help you secure lower premiums.
Location
Where you live plays a crucial role in determining your insurance rates. Urban areas with higher traffic density and accident rates generally lead to higher premiums. Additionally, regions prone to extreme weather conditions can also affect your rates.
Claims History
Your history with previous insurance claims, whether with motorcycles or other vehicles, can impact your rates. Frequent claims or a history of accidents can signal higher risk to insurers, leading to increased premiums.
Bike Value
The cost of your bike. Generally, more expensive bikes come with higher insurance premiums. If you get into an accident or need repairs from a lowside crash, the costs can quickly add up. For example, replacing a set of fairings for a Kawasaki Ninja might cost around $500 USD, while the same repairs for a BMW R 1250 GS could easily exceed $1000 USD. Consequently, motorcycles that are more expensive to repair will command higher insurance rates if you have comprehensive and collision coverage.
Tips on Lowering Insurance Cost
So, you’ve contacted your insurance company, but they won’t adjust their rates, and nothing seems to be working out. What else can you do? Here are a few tips:
Take a Safety Course
Completing a motorcycle safety course can sometimes lead to discounts.
Shop Around
If your current provider won’t adjust their rates and you’re curious about yearly costs, consider comparing quotes from different motorcycle insurance providers before finalizing your policy. Look for an option that fits your budget and lifestyle. With so many choices available, there’s no need to feel locked into a specific plan.
Join a Riding Association
Some organizations offer their members discounts on insurance.