In Alberta, it’s mandatory to insure your motorcycle. Understanding how the province defines “motorcycle” and the required insurance is crucial.
PHOTO Courtesy | FREEPIK
Despite their smaller size, some mistakenly believe motorcycles pose minimal risk, leading to underestimation of insurance necessity.
However, this is a misconception; motorcycles can cause significant damage and suffering. At A M Luken Insurance & Financial Services, we advocate for $2,000,000 of Third-Party Liability coverage, but we also offer $1,000,000.
We never recommend less as we believe the slightly higher cost of $20 to $50 per year is well worth the increased coverage limit.
Mandatory Coverages for Insuring Motorcycle in Alberta
All motorcycles insured in Alberta must have the following coverages:
– Third-Party Liability
– Accident Benefits
– Direct Compensation for Property Damage (DCPD)
These coverages are essential in the event of a collision. Third-party liability assists with legal expenses and third-party injuries if you’re sued.
Accident benefits provide coverage for your own medical and other benefits.
Lastly, DCPD covers repairs to your motorcycle if you’re not at fault for the collision, or partial repairs if you share fault.
Factors to Consider when Insuring a Motorcycle in Alberta
For most individuals, coverage and pricing are the primary concerns when seeking insurance. While affordability is a significant factor for many, it’s essential to recognize that a low-cost policy may not necessarily offer adequate protection.
In Alberta, it’s legally mandated to have third-party liability coverage for vehicles, but this basic requirement may not provide personal coverage if your motorcycle is damaged or deemed a total loss due to your fault.
Consulting with a broker about available insurance coverage options is advisable. You have the flexibility to tailor your insurance to your specific needs, ensuring you’re not paying for coverage you don’t require.
Many individuals choose collision coverage, and some opt for comprehensive coverage as well, providing protection against theft, vandalism, or physical damage to your motorcycle.
Various coverage options are available, including:
– Coverage for personal effects, such as accessories and clothing, lost in an accident (excluding theft, which typically falls under home insurance)
– Vacation expenses coverage, encompassing food, accommodation, and transportation if your motorcycle becomes inoperable during a vacation due to an insured loss, such as an accident
– Loss of use coverage, enabling you to rent another bike while yours is in the repair shop
– Coverage for accessories and equipment installed on your motorcycle
– Roadside assistance
– Extended coverage for rented or non-owned motorcycles
Determination of Motorcycle Insurance Premiums in Alberta
Various insurance companies employ different methods to determine rates for motorcycle insurance, highlighting the importance of comparison to ensure optimal coverage at the best price.
Insurance brokers play a crucial role in this process as they collaborate with multiple companies and can readily compare rates. Several factors contribute to determining your premium, including:
– Geographic location
– Commuting habits (if your motorcycle is used for commuting)
– Type of motorcycle (e.g., cruiser, chopper, sport bike)
– Motorcycle make
– Driving record, including duration of motorcycle licensure and overall claims history
– Insurance history (continuous insurance coverage duration typically enhances eligibility)
How to Lower Motorcycle Insurance Premiums in Alberta
Price comparison is a key strategy for securing a lower premium, and utilizing a broker can facilitate this process by easily comparing quotes from various companies.
However, if you prefer to handle it independently, ensure you obtain quotes from multiple insurance providers.
Enrolling in rider training courses can also lead to discounts on your rates, particularly if you’re a new rider. Maintaining a good driving record and continuous insurance coverage are additional ways to accrue “insurance credit,” resulting in reduced rates.
This encompasses not just accidents but also tickets, which can impact your rates.
Some insurers offer discounts to customers with advanced safety features or anti-theft devices installed on their motorcycles.
Bundling your motorcycle insurance with your home and everyday vehicle coverage under the same insurer can also lead to discounts.
Opting for motorcycles with lower power and avoiding unique or custom bikes can also positively influence your insurance rates, as high-powered or rare models are often considered high-risk due to expensive and hard-to-find replacement parts in the event of a claim.
Given the variations between insurance companies and motorcycle policies, it’s advisable to discuss your specific policy’s coverages and limits with your insurance broker. They can provide guidance to help you choose the best policy at an affordable price.
ALSO READ
Cancelling Motorcycle Insurance: Reasons, Process and Consequences