Determining Motorcycle Insurance Rates
17 Jul, 2017
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How Are Motorcycle Insurance Rates Determined?

It is not unusual for people to question the cost of motorcycle insurance. After all, they are only driven from spring until fall. Within the industry, there are many factors involved within the rate setting process. And these factors are not always clear to motorcycle owners or those without insight into the marketplace. And so to help you better understand your motorcycle insurance rates and the process that goes behind setting them, we’re offering a guide in this latest post.

General Factors

When offering their rates to you, insurance companies will generally consider a couple of basic elements. Firstly, they’ll review how likely you are to make a claim that will cost their company money. Secondly, they’ll consider how much that claim will cost them once it’s paid. These general factors help to explain why some motorcyclists pay more than others for their coverage.


There are specific elements that increase your chances of having a higher insurance premium. Age, for example, is considered a determinant of risk for the insurance company. Those who are aged between 17 and 25 have been determined to be the most likely to make an insurance claim, and therefore younger people tend to pay more for their insurance over the years.

Your Bike

Another consideration in creating your policy and determining its price is the type of bike you ride. The more powerful your bike, the more potential there is for the risk of injury. And so those with faster bikes generally pay more for insurance. You will also have to tell your insurance company if you modify your bike, as they can then determine whether you’ll be paying more or less based on the modification to your vehicle.

Your Location

It’s a fact that your bike is more likely to be stolen or damaged if you live in a built-up area where the potential risk for accidents is higher. Another location-based consideration is the amount of crime within the region. In areas where higher levels of crime are reported, you’ll likely have to pay a higher rate for your motorcycle insurance coverage.

Your Record

One of the more important elements in determining the final rate that you pay per month for your motorcycle insurance is your record on the road. If you have an excellent record with limited reporting of theft or accidents, you’re likely to have lower insurance premiums. And most insurers will accept five years without incidents to give you a deep discount on your premiums over the coming years.

The Type Of Coverage You Choose

The type of motorcycle insurance coverage you choose also plays an important role in your premiums. There are several coverage options to select from, including:

  • Third-party only
    Covers you if you are held responsible for damage to other people, property and vehicles. When in Ontario, your liability protection will pay the damages caused to your motorcycle if another vehicle was deemed to be at fault.
  • Comprehensive
    Comprehensive insurance generally covers the things you have little to no control over, such as theft, vandalism falling objects, and fire.

Our trusted team of insurance specialists has decades of experience within the marketplace. We’re here to guide you on choosing a motorcycle insurance policy to keep you safe on the road for the coming years. To learn more, call us today!

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Oshawa Office 110 King Street East
Oshawa, Ontario, L1H 1B6

Lindsay Virtual Office