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Why Is your Motorcycle Bigger Than Mine But You Pay Lower Motorcycle Insurance Premiums ?
Many people, especially those purchasing their first motorcycle, don't anticipate motorcycle insurance premiums that cost more than their motorcycle. Unfortunately, this is a very common occurrence. However, There are some techniques you can use to lower your insurance premium.
All insurance companies evaluate the cost for an insurance policy in basically the same way. They evaluate the risk, and then apply a premium that reflects and covers that risk. Therefore, the important factors to consider when purchasing a motorcycle are the factors that involve risk. The age of the rider, the experience level, and age and size of motorcycle are just a few of the categories they consider.
Your location also contributes to the price, as cities are considered to have a far greater risk factor than town or country riding. Many insurance companies will lower your insurance premium if you take an approved training course, like drivers ed for a car. Also, the type of housing you have for your motorcycle, if any, when it is not being ridden plays a fairly high factor in your premiums.
One of the major areas that will affect your insurance premium is the age, style and size of your motorcycle. Others are the riders age, experience and occupation. While you can't do anything about your age, or experience level, other than the previously mentioned training course, you can control the factors of the age and size of your motorcycle. Many new riders benefit from buying an older motorcycle with a smaller engine for the first couple years, and then when you have a little more verifiable experience upgrading to the bike you want.
Another factor that affects your insurance premium is the distance you will ride your motorcycle each year. If it is going to be your primary transportation for the summer months, chances are your mileage will be higher. Whereas if you're only going to be going for a weekly ride with some friends, then chances are your mileage will be significantly less. The mileage accrued increases or decreases the risk respectively.
One factor that you have to negotiate with is the amount of deductible required to make an insurance claim. Many people find it beneficial to increase their deductible and therefore lower their insurance premium. This is also beneficial in the fact that you only pay the deductible when you make a claim on your insurance. Typically,if a repair will cost you less than $300 to $500 you're better to pay for it yourself than put it through your insurance anyway.
If your motorcycle has any modifications, especially performance enhancing ones, this will significantly increase your risk factor. Also, the type of motorcycle you purchase will affect the risk factor and therefore your insurance premium. A sports bike presents a far greater risk than a cruiser style bike.
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