Jeffrey Wade
Motorcycle insurance and auto insurance have some similarities, but understanding the differences between the two is crucial when making informed decisions about your coverage needs. While both types of insurance require liability coverage, the minimum liability limits vary between states and vehicles. Collision and comprehensive coverage options also differ, as do the costs, with motorcycle insurance generally being cheaper due to lower coverage requirements and the lower cost of most motorcycles. Additionally, motorcycle insurance may offer unique coverages like accessory and guest passenger liability insurance.
What You'll Learn
Minimum insurance requirements
The minimum insurance requirements for motorcycles and cars differ across the US. While car and motorcycle insurance policies require liability coverage, which covers damages to others' property and bodily injuries resulting from an accident, the minimum liability limits may vary between states and vehicles. For instance, Montana and Washington don't enforce minimum insurance requirements for motorcycles, while Florida riders with certain minimum amounts of coverage can ride without a helmet. In New Jersey, the state requires that all motorcycle operators carry minimum liability coverage of $15,000 for bodily injury, $30,000 for each accident, and $5,000 for property damage.
Some states may not require collision coverage for a motorcycle, unlike with car insurance. However, if there is a lienholder, collision coverage may be needed. Comprehensive coverage, which protects against non-collision-related events such as theft, vandalism, and weather-related damage, is also available for both cars and motorcycles, but the specific coverage and costs might differ.
Medical coverage and personal injury protection are optional for both car and motorcycle insurance policies. However, due to the increased risk of injury for motorcyclists, it is recommended to have higher coverage limits for these options.
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Cost
Motorcycle insurance is generally cheaper than car insurance. The average cost of motorcycle insurance is $60 a month, while car insurance is $58 per month. However, this can vary depending on factors such as the type of vehicle, its cost, location, usage, and the driver's history. For example, people with high-end motorcycles that are expensive to repair or replace may find that motorcycle insurance is more expensive than car insurance.
The difference in cost between motorcycle and car insurance is mainly due to the differences in coverage requirements, risk factors, and the lower cost of most motorcycles compared to cars. Motorcycles are typically cheaper to purchase, and repairs are usually less costly than car repairs. They are also less likely to damage someone else's property and cause less damage when they are at fault in an accident, making liability coverage more affordable for motorcycles. Additionally, motorcycles cannot be driven in snow, rain, or other types of inclement weather, which reduces their mileage and usage compared to cars.
The cost of motorcycle insurance can also vary depending on the coverage you select. Comprehensive coverage, which includes protection against non-collision-related events such as theft, vandalism, and weather damage, will increase the cost. Collision coverage, which covers damages resulting from a collision with another vehicle or object, is also an additional cost. Medical coverage and personal injury protection are optional but recommended for motorcyclists due to the increased risk of injury.
To save money on motorcycle insurance, you can take advantage of available discounts, such as multi-policy discounts, rider training discounts, and anti-theft device discounts. Comparing quotes from multiple insurance companies and maintaining a clean driving record can also help lower your premium.
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Risk factors
Age and Experience
Motorcycle insurance for young and less experienced riders tends to be more expensive. Insurance providers consider young riders, especially young men, as a higher risk group. The cost of insurance decreases as the rider's age and experience increase. For example, an 18-year-old driver with one year of experience will likely pay higher rates than someone in their 30s with ten years of riding experience.
Location
The location of the rider heavily influences the cost of motorcycle insurance. Riders in urban areas typically face higher insurance rates due to increased accident and crime rates. Additionally, living in an area with high levels of crime, especially bike thefts, can result in higher premiums. On the other hand, residing in a quiet, rural area may lead to lower insurance costs.
Riding Habits
A rider's habits and history can significantly impact their insurance premiums. Reckless driving behaviours, such as speeding, at-fault accidents, and driving under the influence (DUI), will result in higher insurance rates. Conversely, maintaining a clean driving record without any traffic violations or accidents can help reduce the cost of insurance.
Type of Motorcycle
The type and value of the motorcycle play a crucial role in determining insurance rates. More expensive and high-end motorcycles, particularly those with higher horsepower and higher crash rates, tend to be more costly to insure. Sports bikes, for example, often have higher insurance rates compared to cruisers or touring bikes due to their higher risk profile.
Modifications and Accessories
Modifications made to the motorcycle can also affect insurance costs. Insurers generally view modified bikes as a higher risk, as they may be more attractive to thieves and increase the chances of accidents. Upgrades, customizations, and accessories added to the base model of the motorcycle can increase the insurance premium.
Security and Storage
The security measures and storage location of the motorcycle can impact insurance rates. Storing the bike in a locked garage or on a private driveway can reduce the risk of theft and lower insurance premiums. Implementing security features such as bike locks, ground anchors, and immobilizers can also help decrease the cost of insurance.
Mileage and Usage
The mileage and usage of the motorcycle are additional factors considered by insurance providers. Riders who use their bikes for commuting, especially during rush hour, may pay higher premiums due to the increased risk of accidents. On the other hand, leisure riders who cover fewer miles annually may be able to secure lower insurance rates.
State and Legal Requirements
The state or region in which the rider resides can significantly influence the cost of motorcycle insurance. Different states have varying minimum insurance requirements, and factors such as accident rates, crime statistics, and weather conditions can contribute to higher or lower insurance rates. For example, New York is known for having the highest car insurance cost, while Georgia has the lowest.
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Discounts
While motorcycle insurance is generally cheaper than car insurance, there are still ways to further reduce the cost through discounts. These discounts vary by state and insurance company, so it is important to check with your insurance provider about what is available to you.
Multi-Policy Discounts
Some insurance companies offer discounts if you bundle your motorcycle insurance with other types of insurance, such as home, personal auto, or commercial auto insurance. For example, Rider Insurance offers a Companion Package Discount for bundling, and GEICO offers a 5% discount if you insure your car with them in addition to your motorcycle.
Safety Course Discounts
Many insurance companies offer discounts for motorcycle riders who have completed safety courses. Rider Insurance offers a Safety Course Discount and a Safety Instructor Course Discount, which can be applied to each vehicle for up to 3 years and 2 years, respectively, after completion of the course. Similarly, GEICO offers a discount of up to 10% for completing a Motorcycle Safety Foundation or Military Safety Course, and up to 20% if you are a current Motorcycle Safety Foundation instructor.
Claims-Free Discounts
Insurance companies may also offer discounts for being claims-free for a certain number of consecutive years. Rider Insurance, for example, offers a 5 Year Claims-Free Discount.
Anti-Theft Device Discounts
Riding Group Discounts
Experienced Rider Discounts
Insurance companies may also offer discounts for experienced or mature riders. Rider Insurance offers a Preferred Operator Discount for applicants over 26 with a clean driving record, insuring a non-sport/non-high-performance motorcycle. They also offer a Rider Experience Discount for policies with operators with at least 3 years of on-road riding experience. GEICO also provides a discount of up to 10% for mature riders.
Renewal Discounts
Sport Bike Safe Driver Discounts
Rider Insurance offers a Sport Bike Safe Driver Discount for applicants over 35 with a clean driving record, insuring a sport or high-performance motorcycle.
Multiple Bike Discounts
Prior Insurance Discounts
You may be eligible for a discount if you are transferring your coverage from another insurance company. Rider Insurance offers this discount for policies transferring with no more than a 180-day lapse in coverage. GEICO also offers a discount of up to 10% when you transfer your motorcycle insurance to them.
Advanced Shopper Discounts
Planning ahead can also save you money. Rider Insurance offers an Advanced Shopper Discount, where the more time between your quote date and policy start date, the bigger the discount.
Pay-in-Full Discounts
Paying your full motorcycle insurance premium upfront rather than in monthly instalments can also reduce your premium. Rider Insurance provides a discount for this payment method.
Anti-Lock Brake Discounts
Military Discounts
Rider Insurance offers a discount to all active and former military personnel.
Group Affinity Discounts
Rider Insurance also provides a Group Affinity Discount for active members of approved affinity groups.
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Coverage
Collision and comprehensive coverage are available for both cars and motorcycles, but the specifics of this coverage may differ. Collision coverage, which pertains to damages resulting from a collision with another vehicle or object, is required in some states for cars but not for motorcycles. Comprehensive coverage protects against non-collision-related incidents, such as theft, vandalism, and weather-related damage.
Medical coverage and personal injury protection are optional for both car and motorcycle insurance policies. However, due to the increased risk of injury for motorcyclists, higher coverage limits for these options are recommended. The cost of motorcycle insurance can vary depending on the coverage selected, and certain safety gear, such as helmets, may be covered under motorcycle insurance policies.
Motorcycle insurance may also include accessory coverage and guest passenger liability insurance, which are not typically included in car insurance policies. Additionally, some motorcycle insurance policies may not cover passengers since motorcycles are generally considered single-rider vehicles.
In terms of costs, motorcycle insurance is generally cheaper than car insurance due to lower coverage requirements and the lower cost of most motorcycles compared to cars. However, people with high-end motorcycles that are expensive to repair or replace may find that their insurance costs are higher.
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Frequently asked questions
Yes, motorcycle insurance is generally cheaper than car insurance due to lower coverage requirements and the lower cost of most motorcycles compared to cars.
Factors such as the type of vehicle, its cost, location, usage, and the driver's history can impact insurance rates for both cars and motorcycles.
You can lower your insurance premium by taking advantage of available discounts, such as bundling your car and motorcycle insurance policies, maintaining a clean driving record, and choosing higher deductibles.
Yes, many insurance providers offer multi-policy discounts when bundling your car and motorcycle insurance policies.
It is recommended to add medical payments coverage, personal injury protection, and uninsured/underinsured motorist coverage to your motorcycle insurance policy for added security.
