Understanding Motorcycle Insurance

Just because your agent for homeowner’s or auto insurance seems to be the best on price, does not mean that their prices for motorcycle insurance will be the best. 

The best prices for this kind of insurance often come from companies that specialize in this kind of insurance, rather than from companies that sell a little bit of everything. 

So, check around and see what rates you can find.

Be aware that there are several things that will affect the price of your insurance:

Ø      The size and age of your bike  - If you buy a brand new, flashy, souped-up motorcycle, you are likely to pay a lot in insurance.

Ø      Your age – Your rates will be cheaper if you are older.  The younger you are, and the less experience you have in riding/driving a motorcycle, the more you are going to pay in premiums.

Ø      Where you live – If you live in an area with high crime or an area with a high accident rate, your premiums will be much higher.

Ø      Your driving and accident record – If you have a history of accidents (even with cars) your premiums will be higher. 

Ø      Your routine – If you drive your bike to work, drive it every day, drive it on highways often, or drive it long distances, your rate will be higher.   
 

If you park your motorcycle in high crime areas, your premiums will be higher, even if you don’t LIVE in a high crime area.

Ø      Training – If you take special courses from the Department of Motor Vehicles or private lessons, you can get a lower rate. 

The insurance company will ask for a copy of the certificate that proves you took and passed the course.

Ø      Security – If you have an alarm, if you park your bike in a locked garage, or if you have other security or protection, your rates will be lower.

Standard insurance for a motorcycle provides coverage that is similar to automobile in terms of liability and medical coverage. 

Because it is so much easier to be badly injured on a motorcycle, you will find that coverage for injury may be expensive.

Coverage for theft, damage, vandalism and loss of personal property varies depending on the policy and the amount of coverage you get. 

Talk to your agent to compare one policy to another and be sure that you are comparing ‘apples to apples’.  One premium may seem much lower, but it may give you a lot less coverage.

While it may be cheaper to insure older, smaller bikes, you have to weigh safety against the premiums you will pay