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Owning a motorcycle can be a lot of fun. However, before buying a motorcycle, it is a good idea to check with your existing insurance company to see if they offer motorcycle insurance and how much you will end up paying for it, as it can be very expensive depending on a number of factors. In order to find the best deal on motorcycle insurance, you must learn how the insurance companies rate applicants. Only by learning about the practices of insurance companies, you can get the best insurance coverage and save yourself a great deal of money.
What Determines Your Motorcycle Insurance Premium?
Several factors can play a role in determining your insurance premium such as the type of motorcycle you own, your age, your driving record, where you live and having a certificate from a motorcycle training course. Once you find out how the insurance companies rate drivers, you are in a better position to find a good deal.
1. The type of bike you own
The model, value, engine size and year of the motorcycle will directly affect insurance rates. Usually, the flashier your bike is, the more it will cost you to get it insured. The latest models of bikes command higher premiums than older models on the market.
2. Your age
As is the case with car insurance, older people with a good driving record will normally get better rates. However, if you are beginner, the insurance company will most likely quote you a higher rate.
3. Your driving record
All forms of vehicular accidents you have in your driving record are taken into account in determining your insurance premium. Therefore, if you have a good driving record, you can expect to get a better rate.
4. The area you live
The place where you reside can also affect your insurance rate. Usually, people living and driving in high-crime and high-accident areas are likely to be quoted higher rates.
5. Your profession or type of work you do
The location of your work or where you keep your motorcycle at work will affect your insurance rate. If you keep your bike in a risky area such as a construction site, you will be required to pay more for insurance.
6. Multiple motorcycles
Some motorcycle insurers may offer a multi-cycle discount if you have more than one motorcycle on the same policy. Find out if your company offers this type of coverage if you have more than one bike.
7. Avoid over-insuring your motorcycle
Make sure that your bike is insured only for its market value. Otherwise, if you get involved in an accident and your motorcycle needs to be replaced, you will only be compensated for the market value of your bike and nothing more.
8. Secure your bike against theft and damage
By taking the necessary precautions against theft and damage to your bike, you may be able to obtain some additional discounts.
9. Mileage you make
How often you ride your bike will also affect your premiums. If you are an occasional rider with a low mileage, you can expect to get better rates.
10. Motorcycle training
If you take any special motorcycle training courses and can document it to the insurance company, you can get a better rate.
Now It’s Time To Shop Around
It is always a good idea to shop around for the best rates before you commit yourself to a certain insurance company. Shopping around for the best deal is essential as Insurance rates can vary widely in the same region from one company to the other. By comparing the rates and benefits offered by several insurance companies, you can make a more rational decision in choosing the best plan. You can also get multiple quotes from several insurance companies simultaneously through some insurance lead companies by simply filling out only one form.
Finally, keep in mind that the lowest rate you are offered by an insurance company may not necessarily mean it is the best rate. The crucial thing to consider here is to weigh the benefits of your insurance policy against the rate you are being charged. In judging what coverage is best suited to your needs, it is essential to consider all the options available such as liability coverage, collision coverage, comprehensive coverage, and uninsured / under-insured motorist coverage.