You need insurance on any type of motor vehicle — whether a car or motorcycle. If you’ve ever shopped around for motorcycle insurance, you likely discovered that the cost to insure a motorcycle is much cheaper than the cost to insure an automobile.
It’s important to understand that various factors affect the cost of motorcycle insurance, such as age, driving record, credit history, discounts and the make/model of the motorcycle. The annual cost for motorcycle coverage also varies, with policies ranging between $120 and $1,000 a year. This is often cheaper than auto insurance, which averages over $1,200 a year.
Value of the Motorcycle
When shopping for motorcycle coverage, insurance companies are likely to quote a rate that’s cheaper than auto insurance because some motorcycles costs significantly less than cars. It’s possible to purchase a motorcycle for only a few thousand dollars, as opposed to cars that typically start around $10,000 to $15,000. Higher priced motorcycles do not receive the same premium discount and have rates that are comparable to automobiles.
How Damage Affects Premiums?
In addition to the lower value, motorcycle insurance is often cheaper than auto insurance because the costs to repair damage to a motorcycle after an accident is less than a car. Granted, it’s probably more dangerous to ride a motorcycle. But if you were to crash, the costs to repair the bike or another vehicle will be far less than if you crashed your personal automobile. Even if the insurance company deems the motorcycle totaled and gave you money to buy a new one, this cost is less than the cost to replace your car.
Types of Coverage
You can customize your motorcycle coverage. Some policies only cover the cost to repair the bike and other personal property damage. However, if you were to acquire bodily coverage on the policy, you can expect your premium to increase. You can also add an additional rider to protect your passengers. Passenger liability isn’t required, but if you select this option, you can also anticipate a higher premium.
Reducing Insurance Costs
Insurance agents can help you get the best insurance rate on your motorcycle. Working with your existing agent is one way to get a discount. Talk to your home, health or auto insurance provider and request a quote for motorcycle coverage. Improving your driving record by taking a driver improvement course is another way to get a cheaper rate. Furthermore, you can lower your rate by improving your credit history. Nowadays, several insurance companies use credit histories to determine premiums — the higher your score, the better your rate. Pay down your debts and maintain a good payment record gives your score a quick boost.
Shopping around for the best policy is another way to score a cheaper rate on motorcycle coverage. Take time to contact other insurance companies and request a free quote.
JT covers motorcycle topics for the Consumer Media Network’s motorcycle insurance blog.