Motorcycle insurance — 10 tips on how to lower your insurance rate in 2018
It is arguably the best idea to research your options for a motorcycle insurance even before you decide to buy a motorcycle. Why is that you might ask? Well, the reason is quite simple. The way the insurance companies calculate your motorcycle insurance costs may vary due to many variables of your motorcycle specifications. The most obvious motorcycle characteristics that influence your insurance rates are the engine displacement and horsepower. In some cases, the insurance companies use the power-to-weight ratio factor. Well, this is far from being the only thing they take into account when calculating your motorcycle insurance rate.
If you own a new, modern motorcycle with lots of special mods and expensive accessories, your insurance will cost you significantly more than if you would insure an older motorcycle. Another, for some even a surprising reason, the address where you live can affect your motorcycle insurance costs as well. If you are living in an area where crime rates are bigger than average, the insurance company will take the higher risk that someone will steal your motorcycle into account. This will result in a higher insurance rate.
In the last few years, the insurance companies became more flexible with motorcycle insurance rates. If you are developing safe riding skills and can protect your motorcycle with a few extra precautions, such as an alarm or immobiliser systems or if you store your motorcycle in a garage instead of in a publicly accessible spot etc., it is more likely that you will find a special offer for a discount. Even if you don’t claim any insurance and you didn’t have an accident for several consecutive years, almost every insurance company will reward you with some extra discounts. Very soon you will be able to get discounted insurance rates for having a Smart Turn System or the Smart Brake Module installed on your bike as well. Our cooperation with a few insurance companies will start already in the first half of 2018.
I have gathered some tips that might help you reduce your motorcycle insurance rates. I advise you to check your options with your insurance company. It also might help you better compare different offers so you can be sure to get the most out of your insurance for the least amount of money spent.
#1 The greater the value, the higher the insurance premium
Older, smaller and cheaper motorcycles represent a lower risk for the insurance companies. In case your motorcycle gets stolen, the insurance will cover a much lesser amount to cover your loss compared to a newer, more expensive bike. Regardless if it was damaged in an accident or if it was stolen. Be careful! Basic insurance usually doesn’t cover the costs if your motorcycle gets stolen.This applies only if you extra insured your bike for this kind of an event.
#2 Rare and uniquely modified motorcycle models
Special edition motorcycles, rare and uniquely modified motorcycles are often treated as high-risk vehicles. The insurance rate for this kind of motorcycles will be substantially bigger. Mostly because it is harder to find replacement parts, also the reparation costs are usually much bigger. In some cases, it is also very hard to replace certain types of motorcycles. Especially with custom-made motorcycles, there is hardly any chance you will get a reasonable offer for insuring theft. Custom motorcycles are very attractive for thieves and vandalists.
#3 Are you a weekend rider?
Many riders use their bikes only in a part of the season. Due to their lifestyle, they spent much less time on the bike than the average rider. Are you among those riders? Check if your insurance company offers a low mileage discounts. The less you are on the road, the less opportunity there is to be involved in an event that would make you claim your insurance.
#4 Paying method can influence the cost of insurance too
An insurance policy is an agreement between the rider and the insurance company. As with any other »relationship«, it is a thing of thrust. If you are sure you made the right decision and if your financial situation allows you, you can be awarded additional discounts if you are willing to pay your insurance for the whole year upfront.
#5 Upgrade your motorcycle’s security
You might want to check if your insurance company approves certain types of security devices that would make potential thieves consider twice before attempting to steal your motorcycle. There are several alarm systems and immobilise systems (OEM and aftermarket devices) available on the market, which will in time pay for themselves and even give you the opportunity to be a bit more confident when you leave your motorcycle out of your sight. Adding an approved device might save you up to 10% on your motorcycle insurance.
#6 Park your motorcycle in a secured area
If you own a garage where you can lock up your motorcycle overnight, do it. The insurance company will likely offer you a lower rate for motorcycle insurance in case of theft. It is much less likely that thieves will try to break into your garage and steal your motorcycle compared to if you are keeping it beside the road or in a driveway that is easily accessible. If you have a CCTV camera surveillance system in the spot where you park your motorcycle, it could help you to negotiate a bigger discount for your motorcycle insurance.
#7 Riding alone or with a passenger
Your motorcycle insurance rate would be larger if you insured only yourself as a rider. Adding the insurance for the passenger will add to the cost. You might consider if you will indeed ride with a passenger or if you will keep it as an individual hobby.
#8 Additional training makes you a safer rider
If you have a motorcycle safety license, you will probably get a bonus as well. Since the insurance companies calculate the risk of potential threats and that riders with a motorcycle safety license statistically represent a less critical group of clients, you should consider investing in safety training. Not only for the fact that it will lower your motorcycle insurance rate. It will also get you more experience and knowledge, allowing you to become a better rider.
#9 Choose the insurance you need and don’t pay extra for events that are not crucial to you
It is always essential that you read the insurance policy and the offer before you decide. In many cases, you will find extra insurance packages included in the offer that you don’t actually need. If you are using your motorcycle only in the vicinity of your home, it probably doesn’t make much sense to pay extra for breakdown assistance. You will likely be able to get your bike to your mechanic for less money.
#10 »No claims« bonus discounts
If you are a safe and careful rider, always focused on the road and you are good at anticipating and securely storing your motorcycle for years, you can build up your no claim bonus discounts, which will also lower your motorcycle insurance rates.
There are several more options that your insurance company will take into account. I advise you to check the offers thoroughly and even take some time to compare offers from different insurance companies. The differences in offers may surprise you. You could easily find the same insurance for half the price that you initially found. There are several sites online where you can compare different offers from many insurance companies. Do your research and take a look at individual sites as well. It is a good idea to speak with a broker. You might get information that will help you better understand the offers and adjust them to your needs.
