Even cheap motorcycles can have exorbitant insurance costs – but why? When it comes to motorcycle insurance, we believe that it’s because most insurance companies don’t really want to know about motorcycles, deeming them too risky and too small an item to be worthwhile.
Many companies will usually give you an expensive motorcycle insurance quote in the hope that you will go away or be foolish enough to accept the high premium.
Top 10 tips for getting cheaper bike insurance:
Shop around. Never accept the first quote you get. And if you get a good, cheap quote, there is no harm in ringing back some of the companies you have already spoken to as they may want your business so much they will undercut the quote.
Get a quote from an insurance company that deals specifically with motorcycles, such as Shannons in Australia, Devitt Insurance in the UK or Motorcycle Services in the US. These are often the cheapest and they also understand that motorcycles are different from other vehicles. They acknowledge that some riders only ride their bike for recreation and don’t rack up a lot of mileage over a year. Online companies are also often cheaper because they don’t have high overheads, but make sure they are established and reputable and not a fly-by-night company! Some traditional insurance companies also offer a discount if you do the deal online.
You can also reduce your premium if you choose to pay extra excess. In fact, this is becoming very popular, according to insurance companies. Just make sure you will be able to afford the excess if you ever need to pay it.
Will you ever lend your bike to another rider? Probably not. In which case, you should tell the insurance company. That could give you a lower premium. If you do want to lend your bike to someone specific, tell the insurance company how old they are. There are policy discounts for premiums that restrict the age of riders.
Whether they ask or not, tell the insurance company if you have a factory fitted or aftermarket alarm and/or immobiliser.
Don’t over-estimate the market value of your motorcycle. If you insure your bike for its new replacement value, you will pay via a higher premium. However, your bike will depreciate in value over the years, so realistically you should reduce the agreed value each year when it comes time to renewing your insurance. To get a realistic market-value price for your that the insurance companies will acknowledge, try Glass’s Guide. That’s the resource the industry uses.
Stay out of trouble with the law. There are insurance premium rewards for having a good riding history.
Attend training courses and tell your insurer which courses you have completed. These often figure in reducing premium costs.
If you drop your bike off its stand, don’t go straight out and make a claim., See if you can fix it cheaply yourself. Every time you make a claim it increases your premium.
Shop around at renewal time. Don’t just sign the annual renewal form. And remember to provide as much information as possible about your bike such as whether it is kept in a locked garage and its usage.