Motorcycle riding offers freedom and adventure, allowing riders to experience the open road like never before. However, it requires a unique skillset different than driving a car and can be much more dangerous. Motorcycle insurance safeguards riders in the event of an accident or unforeseen damage and is required to operate a bike.

While motorcycle insurance is a necessary expense, there are ways riders can save money without sacrificing coverage. Understanding the factors that determine motorcycle insurance rates is key to finding the right policy at an affordable price. In this guide, we'll explore the various aspects that impact insurance rates so riders can make informed decisions about their policy needs.

Type of Bike

Insurance companies will ask riders for the make and model of their motorcycle to determine their monthly premiums. Motorcycles come in various categories, each catering to different riding styles and purposes. This significantly influences insurance rates because of the differing levels of risk and repair costs associated with each category. Here is a summary of some of the most common types of motorcycles and two-wheeled vehicles that must be insured:

• Standard motorcycles
• Sport bikes
• Cruisers
• Touring bikes
• Scooters and mopeds
• Dirt bikes
• Custom bikes

The type of motorcycle significantly influences insurance rates because of the differing levels of risk and repair costs associated with each category. Understanding a bike’s associated risks and anticipated costs can help you make informed decisions and potentially save on insurance premiums.

Other Bike Characteristics

Insurers consider other characteristics when determining insurance rates, apart from the type of motorcycle. Newer bikes often cost more to insure because of their higher market value and potential repair costs than older bikes, depending on their specific model. Motorcycles with greater horsepower and larger engine sizes are also seen as riskier by insurers, so their increased power and speed lead to higher insurance premiums.

Certain bike models with high theft rates are more likely to face higher premiums because of this associated risk. Performance-enhancing and specific aesthetic custom modifications may also raise insurance rates and a motorcycle's risk profile. All of these characteristics contribute to a motorcycle's value, which is taken into account when determining insurance rates.

Type of Coverage

Riders have several choices when selecting the amount of coverage they want for their motorcycles. Understanding the various types of motorcycle insurance coverage is crucial for ensuring adequate protection on the road and managing your insurance rates. Basic liability coverage refers to the minimum amount of bodily injury and property damage liability mandated by state law. Purchasing minimum coverage is the most cost effective but offers the least enhanced protection in an accident.

Adding collision and comprehensive coverage to your policy is often referred to as “full coverage.” Full coverage can help riders pay for damages to their bikes caused by other vehicles and circumstances such as weather or vandalism. Comprehensive and collision coverages generally increase premiums due to the broader protection they offer.

Riders can further enhance their protection for themselves and their vehicle by purchasing personal injury protection (PIP) and uninsured/underinsured motorist insurance (UM/UIM). These coverage options cover medical expenses and bike repairs in accidents where the other driver is uninsured or has insufficient insurance.

Location

Where you live plays a significant role in determining your motorcycle insurance rates for several reasons. First, states have their own requirements for minimum coverage, which may be more than bodily injury and property damage liability. Riders living in states with higher minimum liability limits and that require additional coverage, such as PIP or UM/UIM, are likely to pay higher premiums.

Second, urban areas with high traffic congestion and crime rates generally have higher premiums because accidents and thefts are more likely in densely populated cities. Conversely, rural areas tend to have fewer accidents and thefts and thus lower rates. In these quieter regions, roads are less crowded, and crime rates are lower, contributing to safer riding conditions and lower insurance costs.

Lastly, insurance companies assess risk by assessing weather conditions and the length of the riding season. Riding season refers to the period when weather conditions are favorable for motorcycle riding and local roadways are navigable. Areas with longer riding seasons can expect higher premiums as riders are more likely to be on the road more frequently, increasing their exposure to potential accidents or damage.

Age

Your age is another critical factor when determining your insurance premiums. Younger riders, particularly those under 25, often face significantly higher insurance premiums. This is because they are statistically more likely to be involved in accidents, often due to inexperience and a higher tendency to take risks.

More experienced riders usually enjoy lower rates after turning 25. Their proven riding history, often characterized by fewer claims and safer driving records, makes them more favorable to insurers. However, once riders reach their 70s, they can expect insurance rates to slightly increase.

Riding History

A rider’s experience level and driving record directly impact motorcycle insurance rates. Past records of accidents or tickets will increase your rates, potentially making insurance more expensive and difficult to obtain because these riders are more likely to file future claims. A clean record will significantly lower your premiums, making it more affordable to maintain coverage.

Regardless of age, the number of years you have been licensed to ride a motorcycle reflects your risk of filing a claim. Riders with more experience and longer licensing periods are often seen as lower risk, which can also contribute to lower premiums.

Use

The last main factor determining insurance rates is how frequently you ride your motorcycle and what purpose it serves. If you use your bike for daily commuting, your premiums may be higher as a result of increased exposure to risks such as heavy traffic, frequent stops, and the potential for accidents.

On the other hand, if you ride occasionally or only for leisure, you might benefit from lower rates, as insurers typically perceive infrequent riders as less likely to file a claim. Additionally, the type of roads you frequently travel on, urban versus rural, can also impact your insurance costs.

Understanding the factors that determine motorcycle insurance rates can help you make informed decisions and find the best coverage for your needs. For affordable motorcycle insurance quotes, look no further than Saferoad Insurance. California residents can fill out a quote form on our website to receive tailored coverage for their needs. We are glad to answer any questions and offer further information about staying safe on the road!