Motorcycle insurance is legally required of all motorcycle drivers in the United States as well as many other countries. Having insurance actually serves as both a legal and financial protection; in the event of an accident, you will be covered. The need for insurance is even greater for motorcyclists as the potential risk of physical harm in an accident is much higher.
Insurance companies do not always make it easy, however, to understand how motorcycle insurance rates are calculated. In addition, you may be trying to find ways to reduce the cost of your insurance premiums each month. What types of insurance do you need and how are rates calculated?
Types of Insurance
Most major insurance companies will offer bodily injury liability, property damage liability, collision, comprehensive, medical, and personal injury protection policies for motorcycle drivers. There are also some optional services that you can add to your policy such as roadside assistance and accessory coverage. If you want complete coverage with low deductibles, you will have to pay considerably more for your policy.
How Policy Rates Are Calculated
There are a number of factors that insurance companies use to determine how much they will charge you for your policy. While the type of coverage you choose plays a major part in the total of your premium, the following factors will also have a clear impact:
- Age. Insurance companies give considerable breaks to older motorcycle drivers who can show that they have been licensed for several years. That is because they have experience and have proven that they know how to handle themselves on the road on a motorbike. Younger, less experienced drivers are at a higher risk for being involved in an accident and thus will be made to pay more for insurance.
- Location. Where you live also affects the price of your insurance policy. Motorcycle owners who travel mostly in urban areas are asked to pay more because they risk of injury and accident is higher. If you live in rural areas where there is little traffic you are at a much lower risk level.
- Driving History. If you have had speeding tickets in the past, expect higher insurance rates. The same applies if you have been in accidents. Insurance companies see these events as risk factors and thus view you as a high risk driver. On the other hand, a person who has never had a speeding ticket and has not been in any accidents will enjoy a considerable reduction of their insurance costs.
- Type of Motorcycle. The larger your motorcycle’s engine is, the more you will have to pay for insurance. That is because a powerful, fast engine puts you at a higher risk for dangers related to reckless driving. Newer motorcycles are also more expensive to insure because they will cost the insurance company much more to repair than an older bike would.
Even if your age, driving history, and location seem to place you in line for a higher insurance premium, there are some easy ways to limit the amount you will have to pay. The easiest opportunity is taking a motorcycle driver’s safety course.
Every insurance company calculates insurance rates differently for motorcycle drivers. Before you decide which policy to purchase, get rate estimates from several different companies. That will allow you to choose the insurance provider that offers you the best coverage at the best price.
This post was provided by the insurance experts at AutoInsuranceInJersey.com where you can get discounts on both motorcycle and car insurance.