How Motorcycle Insurance Rates Are Determined

Motorcycle insurance rates are determined based on a number of factors. Each one helps an insurance company to gauge the risk that you pose. While not an exact measurement, the statistics employed by insurance companies help to give them an idea of what risk category you fall in and help them to determine your rates accordingly. These are the primary determinants.

How Old Are You?

Just like car insurance, motorcycle insurance rates are based partially on age. Younger drivers tend to be a higher risk group for accidents in both cars and motorcycles so they tend to have higher rates.

The one possible exception is that anyone who is new to riding a motorcycle may experience raised rates until they have a chance to gain some riding experience. Other than that, the young pay more because the statistics say that they are more accident prone.

What Kind Of Bike Do You Have?

The kind of bike that you ride will also have an impact. If you have a brand new, very expensive bike then you should expect to pay more for your motorcycle insurance.

If, on the other hand, you have a bike that is an older, cheaper model then you will pay less. This one is pretty self-explanatory. You just want to remember to inquire about insurance before you buy an expensive bike because these can be difficult to insure. You don’t want to buy a bike and then find out that you can’t get insurance for it.

Where Do You Live?

If you live in an area that statistically has a high crime rate and a lot of accidents then you can bet that will raise your insurance rates. The same is true if you work in an area that fits this description.

If you live and work in an area with less crime and fewer accidents then your motorcycle insurance rates will reflect this. The same is true for where you work. It is not just the general area where you work but what your job is and where you park your bike. If you work or even park on a construction site then your rates could go up because this is a riskier place for your bike to be.

What’s Your Driving Record?

Your driving record will apply even if you have never ridden a motorcycle before. All types of accidents will be used when considering your risk and your rates. A cleaner driving record will net you lower rates just as it should. This is a clear indication of how your driving record will probably be from now on. Past driving records are a remarkably accurate indication of the risk category that a driver falls into.

Motorcycle insurance rates are determined using a number of factors. You have to take into account your age, bike model, address, and driving record. No one should ever hit the road without insurance, but you should know ahead of time that motorcycle insurance rates will be influenced by all these factors.