Motorcycle Insurance 101


People who want to have motorcycles as their main mode of transportation should have knowledge on motorcycle insurance. This article discusses important points to note in motorcycle indemnity.

Motorcycles, similar to cars, are also in need of insurance. This is because it is still a vehicle required to have insurance before it can be taken out for a drive legally. Just before you rev up that motorcycle and hit the highway, you are required motorcycle insurance.

Car insurance companies have noticed the great increase of number of motorcycle owners and drivers so they have created a division in which motorcycle enthusiasts are prioritized with the special policies for motorcycles. But the method is still the same and motorcycle owners are still assessed in two categories of criteria: the intrinsic and extrinsic factors.

Here are the intrinsic factors:

First time owners of motorcycles must have awareness that the condition of the vehicle is one major factor that will determine how much the policyholder has to pay. Of course new motorcycles always get higher rates than older ones.

Companies check the type, engine displacement size, brand, and make of the motorcycle and make them as bases of which the premium rate is computed. If the motorcycle has a large engine displacement size and/or the model is rare or a collector’s item, a higher premium should be expected.

Another intrinsic factor is the coverage type of the insurance. When the coverage is wider, the premium is higher.

Extrinsic Factors

Extrinsic factors include the driving history, location, mileage, parking area, and age of the motorcycle owner.

Driving history is where all the traffic violations of the owner are recorded. When there are more violations on the record, then the owner is charged with a higher premium. On the other hand, the experience of seasoned drivers makes discounts available for them over teenagers.

Additionally, the geographic location of the owner and the parking area where the motorcycle is stashed also matters to the premium rate. If the parking area is in a garage, then you get lower premiums. However, if the owner lives in a community with high crime rate and without a garage, expect a higher premium ahead of you.

Mileage also counts. The lower it is, so will be the premium and vice versa. So, if you want to score a lower premium, and then lessen the times you use your motorcycle – especially in long distance rides. Those who have lower mileage get lower rates.

If owners and drivers desire for cheap motorcycle insurance, experts advise to make use of the internet and look for insurance quotes in there. These can be acquired for free and will broaden your horizon by giving options you can choose from. Pick the perfect policy that suits you.

Quotes can be accessed by filling up online registration forms of websites and companies. This is not only convenient, but also beneficial.

Be a safe driver. It always pays to be a defensive driver because not only it saves you from accidents but also lowers the premium you pay.