So, you just bought a two-wheel drive and you cannot wait to hit the road. But wait, do you have a motorcycle insurance already? Well, if you do not have it yet, keep your vehicle parked until you get yourself a deal with your insurance provider.
Are you wondering about the insurance price for a motorcycle? The annual premiums can actually vary per person according to his location, the type of registered vehicle, his driving record, among other factors. So, read up here for more information before you put your helmet on.
Average Cost of Motorcycle Insurance
Value Penguin studied the average motorcycle insurance cost in 50 states in the US. They found out that the average motorcycle insurance cost for 12 months is $519.
But take note that there are states where the annual premiums are very expensive such as in Louisiana, while there are some states where the annual premiums are very inexpensive like in North Dakota.
We tried to get a quotation online from two providers to get their insurance price for the motorcycle. We used this personal information: a 37-year-old married male living in California, who has been issued a driver’s license for 10 years, does not have any driving record and has finished a basic course on motorcycle safety. He will be driving a Honda CRF 1000 since according to the Motor Cycle Industry Association; this model had the most number of registrants for September 2017.
Progressive Insurance gave us a quotation for three packages: Basic, Choice, and Plus. Their basic motorcycle insurance costs $2,192.76 for one year. The Choice insurance package is at $3,313.76 for the whole year while the Plus package has an annual premium of $3,472.76.
Markel Insurance gave us a quotation that starts with $673 for one year for their basic motorcycle insurance package. The annual premium will cost higher with each added policy and unit-level coverages that you will choose to avail.
We can observe that these figures are above the average motorcycle insurance cost provided by Value Penguin. We can also note a big difference in the cost of their annual premiums, with the price of Progressive’s basic motorcycle insurance package being more than 3 times the amount of the basic package being offered by Markel. It is because each insurance company offers different motorcycle insurance policies and coverage.
What are Included
Since different companies offer different motorcycle insurance packages for each person, we will discuss the inclusions based on the two quotations given above. We will look at the limits of their coverage for their basic motorcycle insurance policies.
Progressive’s basic motorcycle insurance package includes $50,000 liability coverage per person, $100,000 per accident, and $25,000 for property damage. They will pay $50,000 per person and $100,000 per accident for uninsured/underinsured motorist bodily injury.
They also shoulder payment of up to $2,500 for medical payments. They also have an enhanced injury protection coverage for the income lost due to a motorcycle accident and death benefit of $25,000.
This insurance provider will shoulder total loss coverage for physical damages to your motorcycle after an accident. Their comprehensive and collision coverage has a deductible of $1,000 each for total loss coverage. Carried contents on your motorcycle are insured for $1,000 while accessory coverage is $3,000. They also offer roadside assistance to insured members.
Markel’s basic motorcycle insurance package includes liability coverage of $15,000 per person and $30,000 per accident and a property damage liability of $5,000. Their comprehensive and collision coverage has a deductible of $500 each for total loss coverage. Lastly, Markel will shoulder the actual cash value for physical damages to your motorcycle after an accident.
Upon seeing the coverage of the insurance packages, we can understand better why they are priced differently. This will also give you an idea of what coverage to look for when you apply for a plan.
You have to pay an additional premium for every additional coverage for your policy and motorcycle unit. For example, when you upgrade to a Choice package with Progressive, you will have $250,000 liability coverage per person, $500,000 per accident, and $100,000 for property damage. They will pay $250,000 per person and $500,000 per accident for uninsured/underinsured motorist bodily injury.
They also shoulder payment of up to $5000 for medical payments. This insurance provider will shoulder total loss coverage for physical damages to your motorcycle after an accident. Their comprehensive and collision coverage now has a lower deductible of $250 each for total loss coverage.
Carried contents on your motorcycle are insured for $2,000. Their enhanced injury protection coverage for the income lost due to a motorcycle accident and death benefit remains the same as well as the accessory coverage. They still offer roadside assistance to insured members. All these added benefits come at an additional cost of $1,121.
Additional costs are really added protection for you, your family, and the people you share the road with. It is still up to you if you will avail of this added coverage after considering your needs and budget.
Shopping for a Motorcycle Insurance
Reviews.com offers an analysis of the different motorcycle insurance providers across 40 states. This site can help you choose the right company that will match your needs and budget.
You can check their reviews and recommendations to be sure that you can get the best protection at a rate that best suits your finances. You can also check the websites of the specific insurance companies that interest you. They can provide you with a quotation for the coverage that you need. Ask your relatives and friends also for their recommendations.
Take note also that some companies check what you have installed on your motorcycle that can lower the premium of your insurance. Anti-theft devices will make it harder for a thief to steal your motorcycle. Anti-lock brakes reduce the risk of overturning your two-wheeled vehicle.
Factors Affecting Cost of Motorcycle Insurance
There are 6 major factors that affect the insurance price for a motorcycle. These are:
- Age – The minimum age to get a motorcycle license varies from state to state. Alabama allows those 14 years of age to obtain a license while the minimum age requirement in Minnesota is 16 years old.
Young riders have higher insurance premiums while more mature riders are charged with fewer premiums. There is an assumption that as drivers age, they also have a more mature disposition on the road and would, therefore, lead to lower risk of having accidents as opposed to beginner drivers.
- Location – Each state has a set of requirements for liability limits. For example in California, the state requires a minimum liability coverage of $5,000 for property damage coverage, $15,000 for accidents resulting in injury or death of one person, and $30,000 for accidents resulting in injury or death of several people.
Meanwhile, the minimum liability limits in Texas are higher. Coverage for a motorcycle insurance should be $60,000 for bodily injury coverage, $30,000 for bodily injury coverage that would cover every injured person involved in the accident and $25,000 for property damage coverage.
Insurance companies also take into account the road conditions in your area, weather, the frequency of accidents, crime rate, and traffic situation. If the roads are rough and the crime rate is high, there is greater risk in driving a motorcycle and therefore your insurance premium would be higher.
- Driving Record – This is probably the most important factor in determining the cost of your motorcycle insurance. Insurance providers will evaluate your driving record for the past five years, regardless if it was a motorcycle that you were driving or a different type of vehicle. If you have gotten tickets and applied for accident claims, expect your quoted rate to be higher.
- Type of Vehicle – The model and value of the motorcycle can also affect your annual premium. Old models which are available in the model at a less expensive price can have lower premium rates than the latest models. This is because insurance providers assume that it would be more expensive to replace the new models if an accident happens.
- Insurance Coverage – The minimum liability requirements recommended by each state are usually not enough to cover all damages for your motorcycle and the cost of the damages, injuries, or death resulting from an accident. Insurance providers offer different coverages for your motorcycle insurance. If you want a complete and inclusive insurance coverage, you have to pay a higher price for your premium.
- Eligibility to Discounts – Insurance providers offer discounts for drivers who are members of motorcycle riding associations, availed of bundled insurance plans from their company, have a clean driving record, and finished a course on motorcycle safety.
So, now that you have more information about the insurance price for motorcycle, talk to your insurance provider so that you can get the protection that you deserve and one that you can afford. The important thing is to do your research so that you can make an informed choice. Investing in motorcycle insurance will help secure your motorcycle and most importantly, yourself, your loved ones, and fellow motorists.