Factors That Affect Motorcycle Insurance Costs
From a motorcycle owner’s perspective, understanding how insurance companies set prices can be puzzling. Insurance service providers use multiple pricing factors to determine your risk, meaning how likely it is that you’ll file a claim. The lower your perceived risk, the less you’ll have to spend on insurance. Here are some of the most important factors that affect motorcycle insurance costs.
Your Driving Record
Your motorcycle riding record includes your history of traffic violations and at-fault accidents. It’s one of the biggest factors that determine your bike insurance rates. Insurance companies check your driving history for the past three to five years, depending on your state. If you have caused an accident or received traffic tickets, expect to pay more for motorcycle insurance.
But here’s the good news! No matter what’s on your bike riding history, you can work on improving it. Practicing safe driving habits and avoiding speeding tickets and accidents will pay off. It may take a few years, but the longer you drive without any incidents will result in reduced premiums.
Insurance Coverage
The coverage you choose will have a major impact on your motorcycle insurance cost. But don’t be so focused on cheaper prices that you skimp out on the coverage that you actually need for your bike. For example, you shouldn’t buy a basic motorcycle insurance policy just to meet your state’s minimum requirements when you actually need comprehensive coverage. Not having enough insurance could be a recipe for financial disaster.
Insurance History
If you are new to riding a bike and this is your first insurance policy, you can expect to pay a higher rate. That’s because insurance service providers won’t have much information to evaluate your risk. A coverage gap can also lead to higher motorcycle insurance costs. This is a period of time when you didn’t have insurance. A coverage gap is seen as a higher risk, which often translates into higher premiums.
Type of Bike
The type of motorcycle you own also plays a significant role in setting your insurance rates. Insurance companies look at past claims from similar models and evaluate repair costs, theft rates, and payments made for comprehensive claims. Each company has its own pricing system. The best way to find good rates is to do some research by comparing motorcycle insurance quotes from several companies.
We hope that this guide has been useful. If you’ve got any questions, or you’re still in search of the perfect bike for your riding style, feel free to visit Jim Moroney's Inc. in New Windsor, NY. Our team will be happy to help you find a model for your needs. We welcome all our patrons visiting us from Newburgh and Cornwall.