What are the Average Motorcycle Insurance Rates and Costs?

If you are in the market for a new motorcycle one of the things that may be a big factor in your decision is how much a certain motorcycle will cost to insure on an annual basis. Determining the average motorcycle insurance rates and costs is not easy though, as the rate you will be charged depends upon a lot of different factors, just as it does when you insure a car or truck. Here though are some of the things that motorcycle insurance companies look at and how they adjust their rates accordingly.

What Kind of Motorcycle Do You Own?

The kind of motorcycle you own is the biggest factor that insurance companies will look at when determining your annual motorcycle insurance rate will be. On average the most expensive motorcycles to insure are sport bikes. The more power your motorcycle packs the more your average motorcycle insurance is going to cost. Sports bikes are usually the most powerful and in the eyes of most insurers are going to be used at some point for what they were originally made for – racing – putting both the bike and the rider at greater risk.

There are those who would argue that sport bikes are not really motorcycles, but in the eyes of insurance companies they are. And even though a larger bike like a Harley Davidson might look bigger and scarier even the most powerful of them will usually cost less on average to insure than sport bikes.

For example, if you were to purchase a Harley Davidson V-Rod, which packs a fairly powerful 122HP engine, you would be able to expect to  pay much less for your annual motorcycle insurance than if you purchased the popular Suzuki Hayabusar, which has a 1340cc engine (about 130HP) As close as they are in terms of engine power the Hayabusar can reach much higher speeds – 200MPH versus the V-Rod’s 114MPH. This, in the eyes of insurance companies means that the lighter Suzuki presents a much higher risk.

The age of your motorcycle makes a difference when it comes to average motorcycle insurance rates as well. Just like a car, usually the older your motorcycle is the less it will cost to insure. The exception is a motorcycle that is registered as a classic or vintage model. This classification indicates that the bike is more valuable than others and the average insurance rate is higher for these motorcycles than for those that are “just older’.

How Old are You?

Whatever kind of motorcycle you own and want to insure the younger you are the more it is going to cost you, especially if you are under 21. having a very powerful bike is not going to help matters when it comes to lowering your motorcycle insurance rate even if you have an older slower motorcycle your age still goes against you, just as it does if you try to insure a car. Taking defensive riding and safety courses and keeping a clean license can help a lot though, especially once you had your motorcycle insured for a year or so.

On average though if you are an 18 year old motorcyclist you can expect to be charged a rate that is 2-3 times higher than a 25 year old with same bike would be charged and that 25 year old will still pay more than a 35 year old.

Where Do You Live?

Each state has slightly different basic motorcycle insurance mandates and they will affect the average motorcycle insurance rate you will be charged to some extent. In addition if you live in a bigger town or city your rates will be higher than those who park their motorcycles in a suburban of rural area at night. Proving you have a garage to house the bike in can cut higher city motorcycle insurance rates though.

Other Factors that You May be Unaware of

Did you know that your credit score plays an increasingly larger part in the cost of insurance premiums of all kinds, including motorcycle insurance? Or that a college graduate may on average, be granted a lowered motorcycle insurance premium over a high school graduate with no degree?

These are just two of the factors that insurance companies take into account when setting your motorcycle insurance rate that are not in any way related to your motorcycling skills or the type of bike you ride. Being married often helps lower an insurance rate as does owning your own home versus renting.

The Basic Numbers

Insuring a motorcycle is almost certainly going to be considerably cheaper than insuring a car, even if you do own a sleek racy, sports bike. Some people pay as little as $75 a year for motorcycle insurance while others (usually the younger riders) may end up paying around $450. The only way to try to make sure you are getting the best possible motorcycle insurance rate for your personal situation is to shop around a little. It takes more time but is worth it in the long run.

If you have ever shopped for motorcycle insurance the one thing you will have realized that just as is the case with car insurance the higher the motorcycle insurance deductible you are willing to pay the lower your insurance rate is going to be. But is it really worth taking on all that extra personal financial responsibility just to get a lower monthly premium?

Motorcycle Insurance Deductible Basics

The amount of coverage you would have in the event that you got into an accident on your motorbike would vary anyway, depending upon the coverage you chose. Unless your motorbike is leased or financed, in which case you really have no choice by chose a very comprehensive policy, you do have a great many coverage choices. All states have a motorbike insurance coverage basic level that your coverage has to meet but that is usually inexpensive and very basic. Those with older bikes that are not considered classics often opt for that minimum coverage.

But even if your bike is financed the motorcycle insurance deductible amount you choose is very much up to you. And that is where things get a little tricky. Which is the better option – pay more a month and have a very small deductible, meaning that if you and your bike were in a an accident almost all your costs would be covered by your insurance company or pay less every month in the knowledge that if your motorbike is damaged in accident you will have to find money out of your own pocket to get the bike up and running again in addition to whatever the insurance company is willing to pay. And you will have to come up with the money before they do.

How Much can You Save by Opting for a Higher Motorcycle Insurance Deductible?

There are those that think that motorcycle insurance is going to a great deal cheaper than insuring their car. In reality it is likely to be less but in some cases not significantly so. Riding a motorcycle is unfortunately a much riskier business than driving a car most of the time – however great and careful a rider you are. And your motorcycle insurance rates are likely to reflect that risk so may not be as low as you had hoped.

So if a low insurance premium is a must for you so will be agreeing to a higher motorcycle insurance deductible on the insurance policy you choose will be too. And the higher the motorcycle insurance deductible you take the more significant the savings on a monthly premium, often cutting it by a third or more.

How to Make a Higher Motorcycle Insurance Deductible Work for You

Saving money on your monthly insurance premium by taking a higher  motorcycle insurance deductible is certainly a good idea for many people but how well prepared will you be in the event of accident to actually pay for your share of the damage? Until you pay your share of the money it may be that mechanics will not begin trying to fix your bike and you may not even be able to get it towed from accident site. You may be a long time without your motorcycle if you cannot meet that motorcycle insurance deducible right away.

The best way to proceed is to take a reasonably sized motorcycle insurance and then save up and keep that money in the bank – just in case. That way you can still save money on your monthly insurance premium secure in the knowledge that if your motorcycle is damaged you will be able to get it back on the road quickly, or a settlement made in the unfortunate event that the damage is too great and the insurance company decides to write it off.

So Really, How Much Money Can I Expect to Pay?

Motorcycle insurance, like automobile insurance, rates depend on a lot of different factors. The kind of bike you own, how long you have been a rider, points on your license, even where you live are all factors that will come into play. Motorcycle insurance deductibles can be just as changeable. It is hard to say that if you own, for example, a Japanese sport bike that is not financed you will pay $X as a deductible.

The best thing to do is to shop around and pay attention to the deductibles offered. Read the coverage carefully and understand what it means. Many people shop for all kinds of insurance on-line these days and do not always take the time to really understand the policies that they are buying, in their haste to get it all done in “fifteen minutes or less” which can be a very expensive mistake!

Will I Get a Better Deal on My Motorcycle Insurance Deductible with an Older Bike?

Unless it is a “classic” bike often those who own an older motorcycle will get a better deal on both their overall motorcycle insurance policy and their motorcycle insurance deductible than those who own a shiny just off the line model but gain, that is not always the case. Newer bikes have better safety features and security systems in many case and those things, that may not be on your older motorcycle often score big points with insurance companies.

If you have yet to buy your motorcycle getting an insurance quote on the various bikes you are considering is always a good idea, as it may affect your eventual decision. A $2,000 bike that costs $75 a year to insurance or a $4,000 model that costs $450? The difference in the long run can be quite significant.