Motorcycle Insurance: Factors Affecting Your Auto Insurance Rates

Motorcycle insurance is a necessity for riders, and it's important to understand the factors that influence insurance rates. The cost of insuring a motorcycle varies depending on several key elements, including the rider's age, gender, and marital status, as well as their driving history and experience. The type of motorcycle, its safety features, and the presence of anti-lock brakes or anti-theft devices can also impact insurance rates. Additionally, the location of the rider, with urban areas and states with higher accident rates typically resulting in higher insurance premiums. Understanding these factors can help riders make informed decisions about their insurance choices and ensure they are adequately covered in the event of an accident.

Rider's age, gender, marital status, and experience

Several factors determine the cost of motorcycle insurance, including the rider's age, gender, marital status, and level of experience.

Age

Younger, less experienced riders, typically under the age of 25, are considered a higher risk on the road and, therefore, tend to be charged higher insurance premiums. The high insurance rates for young drivers start to decrease at age 25. The best rates are usually offered to individuals in their 50s and early 60s, assuming they have a clean driving record. After age 65, insurance rates begin to increase again.

Gender

Women generally pay less than men for motorcycle insurance. This is because men are considered riskier to insure. They tend to drive more miles than women and are more likely to engage in risky driving behaviors, such as speeding and driving under the influence of alcohol, according to the Insurance Institute for Highway Safety (IIHS).

Marital Status

Married riders typically benefit from lower insurance premiums. This is because insurers view married individuals as more stable and less likely to engage in risky driving behaviors. As a result, they are often considered a lower risk for accidents and insurance claims. Single riders, on the other hand, usually pay higher rates.

Experience

Riders with more road experience tend to pay lower insurance rates. Less experienced drivers are likely to pay more for motorcycle insurance, similar to auto insurance. For example, an 18-year-old driver will typically pay higher rates than someone in their 30s with a clean driving record.

Location and riding habits

The location where a motorcycle is stored and ridden can influence insurance rates. Urban areas with high traffic density and higher crime and accident rates can result in higher insurance premiums. For example, New York has the highest average cost for motorcycle insurance, while Georgia has the lowest.

Motorcycle insurance rates are also impacted by the purpose of riding. If you use your motorcycle for commuting, your insurance rates may be higher as you are likely to ride more often and during peak traffic times, increasing the risk of an accident. On the other hand, pleasure riding is typically associated with lower mileage and less frequent rides, which can lead to lower insurance premiums.

Riding habits, such as reckless driving, speeding, and DUI, also influence insurance rates. A history of reckless driving, including speeding tickets and at-fault accidents, will result in higher insurance premiums. Maintaining a clean riding record can help in obtaining discounted rates from insurers.

Driving history and safety course completion

When it comes to safety course completion, investing in a motorcycle safety course is a great way to enhance your riding skills and reduce your insurance premiums. These courses are designed to make you a safer rider, which in turn reduces the likelihood of accidents and insurance claims. Insurance providers often offer discounts to riders who have completed these courses, as it demonstrates their commitment to safety and risk mitigation. The discounts can range from 10% to 15% on average, and some insurance companies may offer even higher savings.

The impact of your driving history on insurance rates is significant. A single traffic violation or accident can result in increased premiums. Multiple infractions or at-fault accidents within a specific period, such as three to five years, will almost certainly lead to higher insurance costs. However, if your violations are older than the lookback period, they are usually no longer considered when calculating your premium. For example, if your insurance provider has a three-year lookback period and you had an accident four years ago, your current premium would not be affected by that incident.

Completing a motorcycle safety course not only improves your riding skills but also showcases your dedication to safe riding practices. This can lead to substantial reductions in your insurance premiums. Insurance providers view riders who have undergone formal safety training as lower-risk policyholders. The long-term savings from reduced insurance premiums can outweigh the initial cost of enrolling in a safety course, making it a wise investment for any motorcycle enthusiast.

Additionally, the type of safety course completed can impact the insurance savings. Basic courses may lead to some discounts, while advanced or specialized training certifications could result in higher discounts. Insurance providers may also have specific requirements or preferred course providers for policyholders to qualify for these discounts. It is essential to review the policies of your insurance company and understand the factors that influence the extent of insurance savings associated with safety course completion.

Type of motorcycle and its value

The type of motorcycle and its value are significant factors in determining insurance costs. The make, model, year, and engine specifications of a motorcycle all influence its insurance rate. For instance, a vintage motorcycle may require a specialised policy due to its high value, while a standard bike will generally be cheaper to insure than a sports or touring bike.

The cost of repairs or replacement parts for a motorcycle is influenced by its age, mileage, condition, brand, model, and any custom modifications. Higher-value motorcycles with more expensive parts will generally be more costly to insure. Additionally, certain motorcycle brands and models have higher resale values, which can also impact insurance rates.

When determining the value of a motorcycle for insurance purposes, insurers consider its market value, repair or replacement costs, and factors such as the age and location of the owner, where the motorcycle is parked, and how frequently it is ridden.

The type of motorcycle and its value are crucial considerations when choosing an insurance policy. It is essential to understand the specific coverage options available to ensure the policy adequately protects the motorcycle and meets the rider's needs and budget.

Coverage options and limits

The coverage options and limits you choose for your motorcycle insurance will depend on your specific needs and circumstances. Here are some of the most common coverage options and their limits:

Bodily Injury and Property Damage Liability

Bodily injury and property damage liability coverage is mandatory in almost every state. It covers damages to other vehicles and injuries to others if you are liable in a motorcycle accident, as well as legal expenses if you are sued. The coverage limits for bodily injury liability are typically stated as a maximum amount per person and a maximum amount per accident, such as $50,000 per person and $100,000 per accident. For property damage liability, the coverage limit is usually stated as a maximum amount per accident, such as $25,000.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist (UM/UIM) coverage protects you if you are in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the damages. UM/UIM coverage includes bodily injury coverage, which pays for your medical bills, and property damage coverage, which covers damage to your motorcycle.

Personal Injury Protection (PIP)

Personal injury protection (PIP) is required in some states and available in others. It covers your own medical expenses and lost wages due to an injury in an accident, regardless of who is at fault. PIP provides no-fault coverage, which means you can get your medical bills paid quickly without waiting for a determination of fault.

Collision and Comprehensive Coverage

Collision coverage pays for repairs or replacement of your motorcycle if it is damaged in an accident, regardless of who is at fault. Comprehensive coverage pays for damages to your motorcycle caused by incidents other than collisions, such as theft, fire, or natural disasters. Collision and comprehensive coverage typically include a deductible, which is the amount you must pay out of pocket before your insurance coverage kicks in.

Accessories Coverage

Accessories coverage, also known as custom parts and equipment (CPE) coverage, protects any custom parts or accessories on your motorcycle. This includes items such as chrome parts, custom paint jobs, trailers, or sidecars. Some insurance companies automatically include a certain amount of accessory coverage, while others offer it as an optional add-on.

Roadside Assistance and Trip Interruption Coverage

Roadside assistance coverage provides services such as towing, fuel delivery, or minor repairs if your motorcycle breaks down or you are stranded. Trip interruption coverage reimburses you for expenses such as food, lodging, or transportation if your motorcycle is disabled away from home.

Total Loss Coverage

Total loss coverage provides compensation if your motorcycle is declared a total loss, typically defined as the cost of repairs exceeding the value of the motorcycle. This coverage may include new motorcycle replacement, which pays for the cost of a brand-new motorcycle, or agreed value coverage, which pays a pre-agreed amount based on the value of your motorcycle.

Medical Payments Coverage

Medical payments coverage, also known as Med Pay coverage, handles medical costs incurred by you and your passengers in an accident, regardless of who is at fault. This coverage is especially important for motorcycle riders, as the risk of injury is higher compared to driving a car.

When choosing coverage options and limits for your motorcycle insurance, it's important to consider your state's minimum requirements, the value of your motorcycle, and your personal financial situation. It's also a good idea to shop around and compare quotes from different insurance providers to find the best coverage at the most affordable price.

Frequently asked questions