Insurance companies use a specific formula to calculate your monthly premium. While it might seem complex, it boils down to how much risk they believe you represent. The higher the risk, the higher your cost.
Here are the six biggest factors that influence your motorcycle insurance rate.
1. Your Driving Record
This is often the most significant factor. Insurers view riders with past accidents or traffic violations as more likely to file a claim in the future. It’s important to know that they may consider all incidents on your record, not just those where you were at fault, as any claim costs them money.
2. The Type of Motorcycle You Ride
The bike itself tells a story to insurers. Newer, high-performance sport bikes or heavily customized motorcycles typically cost more to insure. This is because they are attractive targets for theft and are often associated with a higher risk of accidents. Older, standard cruiser or touring models usually come with lower premiums, as they are statistically linked to more experienced, lower-risk riders.
3. How Much You Ride
Simply put, more miles on the road mean more exposure to potential accidents. If you use your bike for a long daily commute, expect it to affect your premium. Be accurate when reporting your estimated annual mileage. If you have a claim and your odometer shows significantly higher mileage than you reported, your insurer could deny coverage for misrepresentation.
4. Where You Live and Park
Your zip code matters. If you live in an area with high rates of theft or accidents, your premium will likely be higher. Where you park your bike overnight is also critical. Keeping it in a locked garage is far better in the eyes of an insurer than parking it on the street, as it greatly reduces the risk of theft or vandalism.
5. Your Safety Choices
Proactively reducing risk can lower your costs. Insurers often offer discounts for:
- Completing a certified motorcycle safety course.
- Installing an anti-theft device or GPS tracker.
- Choosing a higher deductible (the amount you pay out-of-pocket in a claim).
6. Bundling with Other Policies
If you have other insurance policies with the same company, you will almost always get a discount for bundling them together. It shows the insurer you’re a loyal customer and allows them to spread risk across multiple policies.
By understanding these factors, you can make informed choices, like taking a safety course or shopping for a different bike model, that may help you secure a more affordable rate. Call Roadway Auto Insurance to learn more and to get a free quote.