Determining Motorcycle Insurance Rates
So, how do motorcycle insurers come up with their rates, anyway?
Believe it or not, they base their premiums on sound statistical data that helps them determine the likelihood of you filing a claim (and costing them money). Insurance companies consider a number of factors, including:
- Vehicle type
- Marital status
- Accident history
- Driving record (moving violations)
- Annual mileage
- Credit score
In general, those who are younger than 25, female, married, live in a rural location, don’t ride much, drive a safe but inexpensive bike, and have a clean driving history and great credit are treated to the best rates.
Motorcycles are fun and fuel efficient. That’s not news to anyone who’s ridden one. But neither is the fact that they’re also way more dangerous than a car. The cold reality is that motorcyclists are 30 times more likely to die in a crash than people in a car, according to the Insurance Institute for Highway Safety (IIHS). And nearly half of all motorcycle deaths are the result of single-vehicle crashes.
The numbers are even scarier for older riders, who are increasingly taking up or returning to motorcycling after many years. Because of slower reflexes, weaker eyesight, more brittle bones, and other disadvantages, riders over 60 years old are three times more likely to be hospitalized after a crash than younger ones.
Still, many enthusiasts enjoy a lifetime of riding without injury. The key to optimizing your odds is to be prepared and avoid risks. Keep in mind that 48 percent of fatalities in 2010 involved speeding, according to the IIHS, and alcohol was a factor in 42 percent. Eliminate those factors and you’ve dramatically reduced your risk and hopefully, your rates.
Be safe out there friends!