Riding a motorcycle is a luxury that millions of people across the world enjoy. Motorcycles are cheaper than cars, and therefore, more households have motorcycles than cars today. It also means that motorcycles have increased mobility of people on the roads that leads to heavier traffic. Amidst this increased mobility, instances of traffic indiscipline and accidents have also increased. Therefore, if you plan to buy a motorcycle, make sure to get it insured. In this article, we will try to answer questions like- how much does motorcycle insurance cost, what are the factors on which insurance cost depends, etc.
Average Cost of Motorcycle Insurance
The average cost of motorcycle insurance in the US is $ 702 per year. It means that the average rider pays $52 per month for getting his motorcycle insured. However, there is no standard pricing for motorcycle insurance. Multiple factors govern the cost of insurance.
Factors Influencing Motorcycle Insurance Cost
1. Age and Gender
Riding a motorcycle is thrilling for people of all ages. However, when it comes to motorcycle insurance, people of different ages have to pay different insurance premiums. Insurance companies also have a mechanism by which they introduce price breaks at different ages. For example, motorcycle insurance costs at age 21,35, and 50 are lesser than that for other age groups. Moreover, as age advances past 50, the insurance cost also increases. It is because there is an increased risk of accidents beyond 50.
Age is an important factor in deciding the cost of motorcycle insurance because it implicates the possible experience of motorcycle riding. For instance, an 18-year old who has just learned to ride a motorcycle and procured a license is more prone to accidents than a 25-year-old who has a riding experience of at least six to seven years.
Even gender has a role in deciding the motorcycle insurance cost. While it may sound unfair, men have to pay a higher price for getting their motorcycle insured. It is because insurance companies say that men are involved in 9 out of 10 motorcycle accidents, and the maximum number of insurance claims also come from men.
2. Past Record
Your driving experience and past driving record are crucial for deciding the motorcycle insurance cost. If you have ever been pulled up by the traffic police and have complaints on your name regarding traffic rules violations, or have had several accidents, the cost of motorcycle insurance increases.
It is simply because being involved in accidents frequently in the past implies that you have a tendency for the same. Therefore, the insurance company charges.
If your case is similar, an insurance company might quote a very unreasonable price for motorcycle insurance. The only way to get cheaper insurance is by seeking quotations from multiple companies before finalizing or bundling policies to save money.
You must have heard that the price of real estate depends on the location of the property. The same is true for motorcycle insurance as well. The place where you live decides the insurance cost and the premium. Globally, a uniform policy is followed where the warmer states with potentially longer riding seasons have a higher cost of motorcycle insurance. Similarly, the colder areas with shorter riding seasons have lower insurance costs.
Moreover, in the United States of America, although the average cost of insurance is $703, the state insurance pricing data shows disparity. In the Southern states, people pay a higher amount for motorcycle insurance as compared to those living in the Northwest or Northern states.
Not just the state but even the city in which you live decides the cost of motorcycle insurance. Larger cities with more traffic often have more incidents of road accidents. So, companies charge more for vehicle insurance in these cities.
4. Features of the Motorcycle
When you buy a bike, you review all aspects of the motorcycle such as safety ratings, mileage, motorcycle type, fuel consumption, etc. The same reviewing is done by the insurance company to decide the insurance cost. Some of the common factors reviewed by insurance companies are:
a. Market Value Of Motorcycle
Expensive motorcycles have higher insurance rates. The company reviews the cost of replacement in situations of accident or theft. Every part of such expensive bikes like tires, chains, etc. add to their value. Since high-end motorcycles are expensive and the cost of replacement is also high, you will have to pay higher premiums.
b. Engine Capacity
Motorcycles with a high engine capacity that promises larger displacements have a higher cost of insurance. It is because the company estimates that a larger displacement will give rise to situations that are prone to accidents, violations, and claims. Therefore, they charge a higher price for insurance.
c. Safety Ratings
Generally, motorcycles that have higher crash ratings, and a proven safety record have lesser insurance costs. Moreover, if the motorcycle has additional safety features like an anti-lock braking system, then the cost of insurance further decreases. However, if you want to renew your motorcycle’s insurance, then the present condition of the motorcycle is reviewed for calculating the insurance premium.
Crash rates affect the motorcycle insurance cost more than other parameters. You might think that crashes or accidents are neither your fault nor the motorcycle’s fault, but insurance companies consider this. When calculating the insurance premiums, insurance companies review the crashing tendencies of every motorcycle or types of motorcycles. Crash rates can classify several motorcycles together for being prone to accidents. It also affects the renewal policy rates, even if the motorcycle has not had an accident during the insurance period.
d. Theft Rates
High-end and expensive motorcycles are more prone to theft. As these motorcycles are always on the radar of thieves, the insurance companies preempt the possibility of theft and charge higher insurance premiums for these bikes. Theft rates affect the insurance costs of motorcycles more than that of cars. It is because it is easier to steal a motorcycle without people noticing.
How much does motorcycle insurance cost – Conclusion
Motorcycle insurance is necessary because you can never predict road accidents or theft, while a replacement is expensive. Today, even parts like motorcycle batteries, tires, etc. are very expensive to replace, so the cost of replacement of the whole motorcycle will be too high. The best way of buying motorcycle insurance is by comparing the market rates and premiums charged by prominent insurance companies. As insurance cost depends on a lot of factors, try and select the motorcycles that have attractive features that are also eligible for cheaper insurance. In all, on asking how much does motorcycle insurance cost, you will never get a standard answer as the insurance costs differ from case to case.