Motorcycle & Moped Insurance
So you drive a motorcycle or moped? Have you been thinking about purchasing one? Riding a bike or moped can be incredibly affordable, if you know what you’re doing.
Do you have, or have you been considering insurance for your bike? Here are a few things to consider before making your move.
- If you’re not with an independent agency, there is a good chance that you are — at this very moment — paying too much for your insurance.
- There are lots of ways to save money, so why not take a moment and ensure you’re getting the best value for your dollar?
Discount Fever – There are a number of discounts available to you. The reasons are varied, but here are a few examples:
- Low-risk occupations (such as teachers or engineers)
- Professional organizations
- Associations
- Recent completion of Defensive Driving course.
- Bike safety/security features, such as: Anti-theft devices, Lo-jack, etc.
- If the driver is a good student
- Senior citizens
Make sure you are taking advantage of all the discounts available to you! It never hurts to ask!
Combine Your Insurance – Most companies offer multi-policy discounts, which are often in the range of 10%. Some companies even take that 10% off each policy! Make sure you talk to your Balcos agent about getting multi-policy discounts.
If you have multiple motorcycles, cars, or homes, or have renters insurance… make sure they’re all insured with the same company! If you don’t, you’re probably paying too much for all of them.
Stay Insured – Never let your insurance policy lapse. If your policy expires, you will be left without coverage for that period, you may find it difficult to obtain insurance again, and your insurance may be more expensive than it was before. Insurance is a business of statistics – a person exhibiting higher risk behavior pays more than a lower risk customer… And customers who let their insurance expire—even for a couple days—are statistically higher-risk, so often get charged extra.
Keep Your Nose Clean – It’s a simple formula – if you’re a good driver, you’ll often get a better price on your car insurance. There are even discounted premiums available to most people that qualify as “good drivers.”
Insurance companies categorize drivers into types – “worst,” “middle,” and “best.” Each type of driver typically gets insurance with a different type of company. But most people typically just get lumped into the “middle driver” type.
Most people categorized in the “middle” have driving records that are about the same as those in the “best,” but don’t get the discounted premiums. Because most people don’t know that they can get a better price. There is no reason, if your driving record is clean, why you shouldn’t be paying the lowest price available. It pays to be a safe driver!
Lawn Ornaments – If you don’t drive it, don’t insure it. If one of your bikes or cars broke down and has been sitting in the backyard for a year, make sure it’s not still on your insurance policy. Keep in mind, though, that many states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as “inoperable” to avoid any complications or penalties. Only drop a vehicle from your policy if you’re sure you’re not going to be driving it for a long time.
Custom Parts & Equipment Coverage– Safety equipment & additions to your bike need to be added onto the policy. Most policies have a minimum allowance for custom parts, but for anything more, you should talk to your agent to ensure it’s covered in the event of an accident.
LoJack Discount – Don’t want your bike stolen? Or if it gets stolen, wouldn’t you love for it to get recovered? With a LoJack system, your bike will be traceable by police. Some companies offer discounts for having a LoJack system installed – talk to your agent about it if you have the system or are thinking about getting one.
Bus It Up – You pay more if you drive to work. And the more miles you drive, the more you pay in insurance costs. You may want to weigh out how much you pay for insurance against the cost of a bus pass, and the savings in gas.
Something else to take into consideration is how much you get paid per hour versus the amount of time you’d spend on the bus (Relax… They’ll do the driving – you’re free to read a book, or listen to music!) or on your bike. When you add up all the changes in time and cost, it is sometimes more affordable to use a form of mass transit to get to work.
Pay Up Front – Buy a longer policy. Sometimes you pay processing fees or price penalties if you have short policies or pay monthly. The longer your policy term, and the more you pay in lump sums, the cheaper your rates will likely be. If installments are the only affordable option, you may be able to avoid fees by having your premiums automatically deducted from your bank account each month. Another option that many companies offer is larger installments - instead of a monthly fee, you can pay two-months worth every two months to avoid some of the fees. Talk to your Balcos agent to see what they can do for you.
Low Mileage Drivers – Insurance companies use “average use” to help them decide whether individual drivers will pay more or less for their insurance. This is usually 400 – 1,000 miles per month. If you drive less than the average, you can sometimes qualify (with certain insurance companies) for low-mileage discounts.
Waiting to Drive – Young, newly licensed drivers are the most prone to accidents. As a high-risk group of people, you will pay more to insure them. If they get their drivers license, you must pay the extra premium. Though it may be difficult to make them wait, if your insurance bills are already an issue, it might be your best option.
If they already have a license, you may be able to exclude them from coverage by signing an exclusion form. Normally, rates go down a little after the driver turns 18, and the price plummets later, usually at age 21 and/or 25.
Medical Payments Coverage – On most policies, the medical payments coverage only goes up to $5,000. If you’ve been injured or know someone who has been, you know that this is a very minimal amount. Consider getting additional coverages to ensure your protection. Talk to your agent, and play it safe on the road.
Type of Bike – If you haven’t already purchased your bike, you might want to think about how the type of bike you choose will affect your premiums. Is it a racing bike? Is it a bike that is targetted by theives? In most cases, Touring or Cruising bikes have much lower premiums than Sport bikes. If you have a bike in mind, talk to your agent to get a quote before you buy – the difference in cost may just impact your decision to buy.
High-Power, High-Cost – The type of power you have driving your bike can also drive your costs up or down. The higher CC (cubic centimeters) your engine is, the more you’ll end up paying in insurance. Insurance companies regard the higher power levels as a risk, as many people ride faster when on a faster bike.
Assume More Risk – You pay a deductible when you have an accident/loss. This is your responsibility to pay before your insure will kick in.
Let’s say you have an accident that causes $500 in damage, and your deductible is $100. You pay the $100 (deductible) first, and then the insurance company pays the rest.
- If your deductible is lower, you pay more for insurance.
- If your deductible is higher, you pay less for insurance.
This is because you are taking more of the risk upon yourself. If you have the money to afford the additional cost and are a safe driver, you can probably afford to pay more in the event of an accident and less monthly. This is often less expensive in the long run.
Garaging Discount – Motorcycles that are locked in a secure structure overnight sometimes qualify to receive a discount on their comprehensive coverage.
Association Discount – With some companies, membership in certain associations will get you discounts. Be sure to ask your agent. Some of the associations include:
- American Motorcycle Associations (AMA)
- BMW Motorcycle Owners of America (BMWMOA)
- Gold Wing Touring Association (GWTA)
- Harley Owners Group (HOG)
- Motorcycle Safety Foundation (MSF), and many more.
Location, Location, Location – If you’re planning a move any time soon, don’t forget to factor in the cost of insurance. Typically:
- If you live in a rural area, you pay less for insurance.
- If you live in an urban area, you pay more for insurance.
- Costs can vary, even within a community.
- Rates vary greatly depending on which communities, cities, or states you plan on moving to.
On Guard! – Discounts are available by many companies to those who have completed a Defensive Driving Course recenly. Typically, this is within the last three (3) years.
Credit Report – Many insurance companies use your credit history as a tool to finding out how great a risk you are. If your credit report is in good standing, you may be able to get discounted premiums by insuring with a company that uses credit reports as a rating factor. Or, if you have a messy credit report, switching to a company that doesn’t use credit history might be advisable.
Other Notes of Interest:
- Operators of “street” motorcycles who are not at least 16 years of age are ineligible for insurance.
- Operators of “dirt” motorcycles or ATVs (not licensed for road use) who are not at least 14 years of age are ineligible for insurance.
The best way to ensure you’re getting the best coverage and premium available to you is by getting the help of an experienced independent agent. Why take on the job of sifting through thousands of companies yourself? An independent agent will do this for you and help make sure you’re getting the most bang for your buck. Our professional agents are here to help you. Call today for a free, no-obligation motorcycle insurance quote.
(877) 783 – 0335
© 2009, Mark S. Balcos. The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.
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