Factors That Determine Motorcycle Insurance Rates

Owning a vehicle almost always means buying vehicle insurance, unless the owner is some kind of rich individual who can afford liabilities beyond what an average individual cannot afford without insurance. Vehicle insurance will protect a person against losses or liabilities caused by a vehicular accident.

Motorcycle insurance should be taken into consideration when thinking of buying a motorcycle. While motorcycle insurance rate has significantly gone down due to the increased number of motorcycles on the road nowadays, there are still some factors can affect the rate of the insurance. It could mean a higher insurance premium or a lower insurance premium, depending on where the owner stands against following factors that insurance companies based their initial cost assessment with:

Motorcycle Type and Age

The type and size of the motorcycle can make the insurance rate go up or down. A small one like a scooter may cost as low as $200 a year while a sports motorcycle, which usually has a higher horsepower, can cost as much as $3,000 a year.

The age of the motorcycle is also factored into. A newer motorcycle is generally more expensive to insure as it is more costly to repair in case of crash accidents.

Driver's Age

Insurance companies almost always differentiate against younger drivers. Young drivers are considered a high risk because of their lesser years of experience on the road. Higher risk means higher premiums. The older the driver means the lower is the premium. A younger driver can however avail a discount claim if proof is shown that he or she availed a motorcycle riding training from the DMV.

Driving Record

Driving records can affect motorcycle insurance rate. If a driver's history shows too many tickets and accidents, the driver is considered a high risk. A higher insurance rates can be expected.

Mileage and Locality

Some insurance plans often give regards to where the drive lives. If the driver lives somewhere where there is usually higher traffic and risk, almost always the insurance premium will be higher.

Mileage is also factored into the rate. How much the driver rides the motorcycle everyday affects the insurance rate as well. In most cases, motorcycle insurance rate will be lower if the mileage is low. Therefore the owner has to decide if the motorcycle will service the owner's daily commute or the motorcycle is going to be primarily used for leisure only.

Safe Parking

Motorcycle that will be parked outside a garage is considered a high risk, therefore constitutes a higher insurance rate. Motorcycle parked outside is prone to theft and accidents. Motorcycle that will be parked inside a garage is safer from outside damage and potential theft, therefore always comprises a lower insurance rate.

In general, it is hard to question these underlying factors that affect motorcycle insurance rate. One has to just deal with it because that is how it works in the insurance industry. Nevertheless, there are still some ways vehicle owners can get cheaper and better deals on insurance. Just some points to remember:

1. Do the research. Spend whole day of to research and do comparison analysis of what is available in the market. Internet is a great resource for this.

2. Find it out all others ways to secure the motorcycle - for example, parking it inside a garage or installing locks and alarms.

3. Do not get over insured. Insurance companies will only pay back the value of the motorcycle or the parts that gets damaged. Over-insurance will not bring more value or money back.

Remember, motorcycle can definitely be a useful vehicle and cheaper to own than a car. Owners can save a lot on gas and general maintenance. However, owners just need to find the right motorcycle insurance coverage that will give them that safety fallback, so that they can ride their motorcycle on the road with peace in their mind.