How to Save on Motorcycle Insurance

By Catherine Powell

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If you ride a motorcycle and drive a car, you might wonder why motorcycle insurance is so expensive.  Just as with all insurance, the cost is consummate with the risk.  When it comes to motorcycles versus cars, bikes are much riskier since they don’t come equipped with seat belts and crumple zones as do cars.  The risk is compounded yet further if you ride a motorcycle with no helmet. 

With nearly 8.5 million motorcycles on the road in the US, bikes still only comprise three percent of all vehicles on the road. Yet motorcycles have a fatality rate that is 26 times higher than other motor vehicles. (In Florida in 2015, 550 motorcycle crashes resulted in a fatality.) Since a motorcycle insurer is required to provide compensation for injury, death and/or property damage in the event of an accident, if you want to reduce your rate, you need to reduce the insurer’s risk.

What bike do you ride? – To begin with, the bike you ride will determine how much you pay.  High-performance sport bikes, costly custom bikes and motorcycles with larger engines generally result in higher premiums.  Do you really need a 1000cc engine to enjoy the freedom of the open road?  If you do it will cost you more than riding a bike with a 750cc engine.

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Where do you park your bike? – Do you park your bike on the street or in a garage? If you garage your motorcycle, make sure you point this fact out to your insurance agent.  Some carriers offer discounts for owners who store their bikes in a secure location when not in use.

How much experience do you have? – Just as commercial truckers who have 10 or more years of over the road experience with no claims get better rates than those new to the job, the same goes for bikers.  That means the more experience you have, the less you can expect to pay, provided you have a clean driving record and few if any accidents.

How often do you ride? – The more often you take your motorcycle out on the road, the greater the chance you could wind up in a wreck.  That’s why you need to tell your agent if you only ride on weekends, or whether you commute to and from work by bike.  This one difference could most definitely spell a significant change in your premiums.

Want to be considered a preferred operator? – Many insurance companies offer discounts to experienced motorcycle owners who have clean driving records, little or no accidents, and few moving citations. 

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How good is your credit score – Believe it or not, insurance companies look at your credit score as an indication as your overall stability.  As a result, they tend to charge higher premiums to people with lower credit scores and vice versa.  One way to get a reduction in insurance costs is to boost your credit score.  If you haven’t checked your credit score in a while, there’s no time like the present, especially if you’re looking to shop for insurance of any kind.

Don’t start and stop – Some bikers stop their coverage in the winter months when it’s sometimes too cold to ride, even in sunny Florida.  If you do this, you can expect any insurance company to charge you a higher rate during the months you choose to ride.

Take a safety class – Even if you’ve ridden motorcycles for years, taking a safety class can save you money since some insurers provide as much as 10% off for those who provide proof they’ve completed a Motorcycle Safety Foundation course.

Upgrade your ride – (and I don’t mean by adding more chrome) If you add a fork lock, burglar alarm, anti-lock brakes or GPS tracker to your bike, you could qualify for a discount.

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Join a motorcycle club – Depending on your insurer, you could get up to 10% off if you join an approved motorcycle club.  Talk to your agent to see which clubs are approved by your carrier.

Bundle your coverage – If you own a motorcycle, you probably also own a car, a house, a boat, and/or a business.  Talk to your insurance agent about bundling your motorcycle insurance with other policies you carry to save some money. 

Pay your premium in advance – As convenient as monthly payments seem, the cost of financing can take a bite out of your wallet.  Do the math and you’ll be surprised at how paying your premiums every 6-months instead of every month can save you money.

Increase your deductible – Just as with other forms of insurance, the lower the deductible, the higher the premium.  If you currently have a $500 deductible, ask your agent what the difference would be if you upped the deductible to $1,000.  You could be pleasantly surprised.

Shop your policy around – When it comes to shopping your policy, you need to understand the difference between an independent agent and a captive agent.  A captive agent only works for a single insurer.  That means he or she can only offer coverage from one insurance company.  An independent agent, on the other hand, can review dozens of carriers to find you the best coverage at the lowest price.  You should also ask any agent what kind of experience they have when it comes to writing motorcycle policies.  As with other industries, some agents have more experience than others, and some specialize in certain types of insurance.  You also want to ask what the procedure is should you ever need to file a claim.  I mean, do you need to call a toll-free number to ask for help, or do you simply call the agent who wrote your policy.  (I don’t know about you, but I hate having to spend time working my way through an automated phone system while waiting to speak to a human being.)

Make sure you don’t water down your coverage to save a few bucks – While you can reduce your premiums yet further by reducing your coverage, this can prove to be a slippery slope.  Sure, your agent can get you a reduction by eliminating uninsured motorist coverage.  But you could come to regret that decision if you are involved in a collision with a driver who has no insurance.  Like it or not, the odds of your being injured should you be in an accident involving your motorcycle is close to 100%. 

Catherine Powell is owner of A Plus All Florida Insurance in Orange Park, Florida.  To find out more ways to save on motorcycle insurance, check out her website at http://aplusallfloridainsuranceinc.com/