What Factors Impact Motorcycle Insurance Quotes and Premiums?
As with auto insurance, the single biggest factor affecting motorcycle insurance premiums is going to be the driving record of the applicant. Insurance companies will look at previous claims that have been filed and at past traffic violations and accidents to determine how much of a risk it is to insure the person. The greater the risk, the higher their premiums will end up being. Generally, accidents and violations will only affect insurance rates for about three years. Those that haven't had any major accidents or claims during that time could be eligible for some discounts based on their safe driving habits.
The type of motorcycle that the applicant is looking to insure will also affect their rates because the more expensive the bike is, the more any type of repair will cost. This is especially true for those interested in insuring a vintage or custom motorcycle, since these are usually far more expensive than the average bike. Some motorcycle insurance companies don't even want to insure these types of bikes given how much they cost to replace. Another thing to note about custom and vintage bikes is that it can be hard to assess their value, so it is a good idea to have the motorcycle appraised prior to insuring it. But just as these factors can raise insurance premiums, security features like anti-theft devices could also help to lower rates.
Although liability insurance is required by law, most people choose to go beyond the bare minimum and add
uninsured/underinsured motorist insurance, as well as collision and comprehensive coverage for their bike. Collision coverage pays for any damages caused in an accident, and comprehensive coverage takes care of damages caused by non-collision-related incidents. Most motorcycle insurance companies also offer accessory coverage for any equipment or accessories that are added to the bike after the initial purchase. Some insurance providers also offer special policies specifically designed for custom or vintage motorcycles. The level of coverage desired can be selected during the quote process, and greater levels of coverage will result in higher premiums.
It is pretty common for motorcycle insurance companies to take credit score and history into account when figuring out what an individual's premium will be, because studies have shown that there is a correlation between a low credit score and a greater likelihood of filing a claim. Those with high credit scores will almost always get a cheaper motorcycle insurance quote than those with a low credit score.
Motorcycle insurance companies take certain personal factors into consideration when determining insurance premiums, including the age, gender, and location of the driver. Individuals living in rural areas are less likely to get into accidents than those living in high-traffic areas, and rural dwellers are also at less risk for theft or vandalism. Motorcycle insurance companies will also look at how the applicant intends to use the bike. An individual who rides to and from work on their motorcycle will rack up more miles — and a higher premium — compared to those who just like to ride recreationally.