Factors Determining Motorcycle Insurance Cost
Since insurance is all about risk assessment, there are two key factors that play a major role, which include the risk associated with the rider and the motorcycle. The factors that are deemed important in case of a rider are as follows:
- Rider's Age: A middle-aged rider is trusted more than a young rider.
- Driving Record: The number of tickets that have been issued to the rider for various reasons are taken into account.
- Location: The location where the rider will use the motorcycle also plays a key role for the insurance company to decide on the premium, since urban areas pose risks and are more dangerous than others.
- Experience: Experience of the rider also matters. More the experience, lesser is the inherent risk.
- Accident Record: The insurance company will definitely trust a person who is less accident prone and more careful, since it actually determines the risk rating.
- Occupation: The occupation of the rider helps determine his/her credibility, since that shows how regular and stable he/she will be, in paying the insurance premiums.
- Make and Model: The make and model of the bike play a key role in getting the insurance, which is quite obvious. If a racing bike is to be insured, the risk factors will be more than that of a normal motorcycle.
- Bike Modifications: When the original system is modified, it increases the financial risk. This is because, sometimes, the modifications cost half of the motorcycle's price.
- Bike Value: This refers to the original value of the bike, which varies with the make and model of the motorcycle. A sports bike will definitely cost more than a normal one. Similarly, the premium paid for the former would be more than that paid for the latter.
- Location: The place where the bike is being parked makes a huge difference in the premium, since it helps in assessing the risk factors of vandalism, theft etc.
There are some easy ways to cut down on the premium and get affordable insurance, if some common sense is applied:
- If you are a beginner, go for an advanced course in riding lessons, that might help you decrease the insurance quote.
- In case you do not have an immobilizer fitted, check the difference in the insurance quotes. In case the ones with an immobilizer get lesser quotes, get your motorcycle fitted with one.
- Decrease the number of miles you ride every year, so that you can avail of the less mileage discount. Provide your typical annual mileage value to the insurance companies, when getting a quote.
- An old motorcycle, with a small engine will help keep the premiums down, in case of a beginner.
- If you build up a "No claims bonus", it will help you in the long run, since it will lessen your insurance premium by a considerable amount.
- It is better to have a third-party insurance or a fire and theft insurance, than total loss coverage, if the original price of the bike is low.
- Renew the policy at the appropriate time.
- Check if the manufacturer is providing any kind of discount, so that you can take advantage of it.
- Check if there are any policy restrictions imposed by your insurance company. Read the documents carefully and keep an eye on them after regular intervals, since the clauses are time-specific.