5 Factors That Can Affect Motorcycle Insurance Rates

Motorcycles offer a convenient and low-cost way to travel. However, in order to legally operate your motorcycle on public roadways, you need to obtain motorcycle insurance.

Many different factors will play a role in determining the overall cost of your motorcycle insurance policy. Understanding these factors will help you better anticipate your motorcycle insurance rates as you shop for coverage in the future.

1. Location

The state in which you reside can have a direct impact on the amount you can expect to pay for motorcycle insurance. Premiums tend to be lower in states that experience cold winters and higher in states that stay warm throughout the year.

This difference in rates based on location can be attributed to the length of the riding season. You probably won’t use a motorcycle as your primary form of transportation during the cold Chicago winters. Riders spend less time on their motorcycles in colder states, which can reduce the number of potential accidents.

Fewer accidents mean a more affordable insurance rate for motorcycle owners living in cold regions.

2. Experience

Many drivers think that age plays a role in determining insurance rates, but this isn't always the case with motorcycle insurance policies. Experience is a more accurate standard that can be used to determine the likelihood of a motorcyclist being involved in an accident.

Regardless of age, a driver with more experience operating a motorcycle can expect to pay a lower monthly premium than a driver with little experience.

Some insurance providers will offer a discount for motorcyclists who participate in specialized defensive driving courses tailored for motorcycle riders. These courses help you become a more experienced rider, which can significantly reduce your risk of a serious accident.

3. Use

The way that you intend to use your motorcycle will play a role in determining how much you can expect to pay for insurance coverage.

Your insurance agent will ask you to identify if your motorcycle will be for personal pleasure or for business. You may need to obtain a more comprehensive policy if you play to engage in business-related activities using your motorcycle.

You will also need to relate how often you plan to ride your motorcycle when your insurance agent prepares an estimate. Riders who only use their bikes on the weekends typically have lower premiums than drivers who use their motorcycles to commute to and from work each day.

4. Model

The motorcycle that you choose to purchase can affect your insurance rates. Insurance providers typically view larger, more powerful motorcycles as a higher risk than their smaller counterparts.

This means that when comparing motorcycles within the same class, you can expect to pay more to insure a motorcycle with a bigger engine. The rationale behind this rate increase is that a bigger engine generates more power, which increases the potential for an accident to occur.

Obtain an insurance estimate prior to purchasing a new motorcycle so that you can limit your search to bikes that are most affordable to insure.

5. Coverage

The type of insurance policy that you select for your motorcycle will help determine your premium rates. A policy that provides state-minimum coverage limits will be more affordable than a policy that includes both collision and comprehensive coverage.

Keep in mind that a less expensive policy probably won't cover the cost of any physical damage to your motorcycle after an accident. If you ride an older motorcycle that isn't worth a lot, then this lack of coverage won't affect you too much.

If your bike is new or you still make payments on your bike loan, you will likely need a beefier policy to provide you with adequate protection.

Call Illinois Insurance Center today and let us help you secure the best motorcycle insurance policy.