Purchasing a motorcycle may have fulfilled a lifelong aspiration. The prospect of embarking on adventures across various states or countries on your own bike likely fueled your decision to make it a reality.
PHOTO Courtesy | FREEPIK
Now, with your motorcycle finally parked in your garage or lot, you might have encountered the realization that insurance costs are higher than anticipated, prompting you to seek ways to lower expenses.
However, defaulting on your premium payments is not a viable solution. This is a crucial aspect of insurance: missing a single payment could lead to a lapse in coverage by your insurer, potentially resulting in increased premiums.
Furthermore, non-payment could result in penalties if detected by law enforcement, leaving you personally liable in the event of an accident or theft of your motorcycle.
Yet, there’s good news—options exist to address this concern. Here are 11 straightforward methods to decrease your motorcycle insurance premium.
Ways to Reduce Motorcycle Insurance Premiums
If you want to lower your motorcycle insurance premium, the goal should not be to get the cheapest insurance coverage but to get a discount to reduce the insurance cost. The cheapest insurance cover may not give the best value for money. Here is how you do it;
Opt for a Smaller Motorcycle:
Lowering your insurance premium can be as simple as opting for a smaller motorcycle. Factors like the model and engine size of your motorcycle determine insurance costs, often categorized by CCs.
Generally, motorcycles with lower CCs are considered safer because of their slower acceleration and reduced top speeds, leading to decreased insurance premiums.
You don’t necessarily have to choose the smallest CC option; instead, aim for a bike within the upper range of your insurer’s CC classifications.
Consider Bike Style:
The style of your motorcycle also influences insurance rates. Insurance companies often perceive sport bikes and superbikes as riskier compared to cruiser motorcycles because they are more susceptible to accidents, primarily due to their higher speed capabilities and the increased costs associated with replacing them.
Take a Motorcycle Safety Course:
Your riding history significantly impacts insurance premiums. Seasoned riders with clean records are considered low-risk and typically receive lower premiums.
Conversely, novice riders may face higher costs. However, you can mitigate this by completing a motorcycle safety course.
Ensure the course is accredited by your insurer, and consider joining a recognized motorcycle organization for additional discounts, further reducing your insurance premium.
Consider Your Mileage:
When enrolling for insurance, your insurer typically requests information about your mileage, a crucial factor in determining your premium.
Individuals who primarily use their motorcycles for weekend leisure rides due to working from home generally accumulate fewer miles compared to daily commuters, resulting in lower premiums.
It’s vital to provide accurate information, as misrepresenting your mileage may initially yield lower premiums but could lead to claim rejection in the future.
Enhance Bike Security:
Ensuring the security of your motorcycle is paramount for insurers, as minimizing risk aligns with their business interests. Safeguarding your bike against damage and theft can lead to reduced insurance premiums.
Storing your motorcycle in a garage receives a discount due to its lower theft risk, and installing anti-theft devices can further decrease premiums.
Increase Deductibles:
Opting for a higher deductible can result in a lower premium, provided you can afford the increased out-of-pocket expense in the event of an accident.
Bundle Insurance Policies:
Combining multiple insurance policies, such as those for health, car, home, or travel, can lead to reduced motorcycle premiums through bundling discounts. Even if you don’t own another motorcycle, bundling other insurance types can still result in significant savings.
Avoid Small Claims to Maintain No-Claim Bonus:
Insurance companies incentivize policyholders to avoid making claims by offering no-claim bonuses. Continuously making claims can categorize you as high-risk, potentially resulting in higher premiums.
Consider paying for minor claims out of pocket to accumulate a no-claim bonus, which can subsequently lower your premium.
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