Motorcycle Insurance

How Motorcycle Insurance Rates are Determined

Motorcycle InsuranceA variety of factors strongly influence motorcycle insurance rates and in this article we will discuss what has the biggest impact on these premiums. Keep these factors in mind as they will help to lower your motorcycle insurance rates when you select a coverage.

1. Type of Coverage
Almost all motorcyclists are required to purchase liability insurance, which will cover expenses in case they injure someone else. While liability insurance is fairly inexpensive, it’s much smarter to purchase collision or comprehensive insurance in addition to liability insurance.

2. Motorcycle Experience
First-time bikers will pay higher premiums than veterans. Insurance companies do lower rates for riders who have a lot of experience.

3. Geographical Location
Every state has different insurance regulations and requirements. Motorcyclists who live in urban areas will have to pay higher motorcycle insurance rates than motorcyclists who live in the country.

4. Age
If you’re an older biker, then you won’t pay significantly high premiums. As a young rider, expect to pay more insurance premiums due to your lack of experience.

5. Driving History
If you’ve had to deal with traffic tickets or previous accidents, your insurance company will bill you more for monthly premiums.

6. Type of Motorcycle
Insurance companies tack on high premiums for those high powered sport motorcycles. Less expensive motorcycles will usually command lower premiums.

How to Lower Motorcycle Insurance Rates
Remember, many insurance companies offer a variety of discounts on motorcycle insurance. You can save an amazing amount of money every year if you qualify for discounts. Here are a few common discounts offered by insurance companies:

1. In regions where the climate is cold, some insurance companies offer a lay-up policy for the winter. In effect, this is a discount so that you don’t have to pay much insurance during the winter.

2. Some companies offer low-mileage discounts for motorcyclists who only ride casually.

3. Check with your insurance company about any anti-theft or security discounts. Many insurance companies will offer you a break if you install some sort of security system on your motorcycle.

4. Some motorcycle groups and clubs have negotiated group rates with insurance companies. If you’re in a motorcycle group, then ask about these group rates.

5. The majority of companies will offer multi-vehicle discounts. So, if you’ve insured a car or another vehicle with the same company, ask about these.

6. If you take a motorcycle safety training course, then you can receive some major discounts.

Carefully Consider All of Your OptionsIt is a good idea to pay a higher deductible so that you can lower monthly payments. The deductible refers to the amount of money you are required to pay before the insurance company takes over.

You might not realize it, but the average cost of motorcycle insurance can range from between $20 a month to $300 a month. Carefully consider all of your options, and purchase insurance that will completely cover all attributes of your motorcycle.