How is Motorcycle Insurance Calculated?
Those who have previously owned a motorcycle, or any vehicle for that matter, know there is no such thing as standard pricing when it comes to insurance. The issue is that different companies offer varying insurance rates; and with the number of insurance companies out there, it can be a real mission comparing pricing to find the one which will provide the best coverage and the best price. Some of the companies that you should at least take a look at are Geico (USA), Famous Insurance (Australia), TD Insurance (Canada), and Bennetts (UK).
What you need to know, though, is that you’re not the only one doing the research; the insurance company also has its own set of considerations before deciding how much to charge you for motorcycle insurance. Detailed below is the information on what factors insurance companies take into consideration when giving you a quote:
Your Driving History
Ever heard the saying “history has a way of repeating itself”? Well, insurance companies have, and they believe in this concept. That is why you are asked to detail any accidents you may have previously in where you were at fault; leaving your driving history (and ability!) open to being scrutinized by insurance companies. Needless to say, a cleaner driving record will mean a lower insurance premium.
Are you cruising on a brand new Kawasaki Ninja ZX-6R? Or perhaps you still haven’t let go of your beloved 2004 Yamaha Road Star. For the insurance company, your ride of choice matters. This is because the newer and the more expensive your motorcycle is, the higher your insurance premium will be. This is one good reason not to upgrade, and simply stick with your old bike!
This is one moment in life where it pays to be older. Insurance companies will take into account the age of the primary driver of the motorcycle when determining the cost of your insurance. Much like your bike model – the younger you are, the higher your premium is going to be. That means, the older generation of drivers get to enjoy lower insurance rates than their younger counterparts.
The more experience you have behind the wheel, the less you are going to pay for insurance. How do you do this if you’re only a new driver? You can undergo special motorcycle training or at least a basic driving course; just present the proper certification to the insurance company and this should get you a better deal.
Residence and Workplace
Even the area in which you live or work is factored into the cost of your motorcycle insurance premium. Frequenting areas that are prone to accidents or have a high crime rate tend to raise insurance costs. Unfortunately there is no way around this, unless you plan to move or change jobs.
Being a skilled driver with an unblemished driving record; and staying away from areas with a high accident rate should net you an affordable insurance premium. If you don’t fall under this category and think you can’t afford motorcycle insurance, think about the cost of replacing your bike or someone else’s without insurance. You know what they say: it’s better to be safe (and properly insured) than sorry.