Why is motorcycle insurance cheap?

Before getting a one-size-fits-all motorcycle insurance policy, take a little extra time to make sure you are getting coverage that best fits your bike and your needs.

While inexpensive, or cheap motorcycle insurance might sound great in the moment, in the long run, it also might be a regrettable decision. Like car insurance, it’s important to understand the factors that might determine your motorcycle insurance policy and the available coverage options.

How are motorcycle premiums determined?

Similar to vehicle insurance, motorcycle insurance cost is determined by the year and type of motorcycle, safety features, the owner’s information and experience. In addition, deductibles and the additional coverages chosen help determine cost.

• Motorcycle classifications – Some insurance companies, such as State Farm®, use claims data to rate motorcycles into different categories based on the cost of comprehensive insurance, collision insurance and liability insurance. Take a look at the motorcycle rating of the bike you have or the bike you are considering, and see how that rating may affect the premium. Motorcycle types include:
  • Sport motorcycles – Easily identified by having a sleek fairing and windshield for better aerodynamics, this style of motorcycle is designed with performance in acceleration, speed, braking and cornering in mind.
  • Cruiser motorcycles – A cruiser bike has a lower seat that makes riding it around town, commuting or taking it out for a road trip more comfortable. Also, this style of motorcycle has available options that make carrying luggage easier for those longer trips. 
  • Touring motorcycles – Touring bikes are more road-trip friendly than the cruiser motorcycles.  Just like a cruisers, touring motorcycles generally have luggage options available to use as you travel to further destinations.
• Motorcycle location – Where you live could impact your insurance rates. One reason is because of the differences in laws for each state around riding motorcycles and how they need to be insured. The premiums for each location are driven by accident rates, motorcycle thefts and more.
• New versus used motorcycle – The age of your motorbike might affect its price as well as any customization that has been done with the bike. 
• Is your motorcycle financed? If you financed your motorcycle through a bank, your lender will likely require you to carry comprehensive and collision coverage on your motorcycle. If you own the bike outright, you may want to consider liability-only insurance depending on the state where you live and the replacement cost for the motorcycle.
• Rider’s age – Just like your car insurance, your age can affect your motorcycle premium. The motorcycle insurance cost for 18 year old riders tends to be higher since they have fewer years of experience.
• Safety classes – Some insurance companies might give a discount if you’ve taken a motorcycle safety course.
• Previous tickets and accidents – Your driving record, whether a car or another motorcycle, can affect price. 

What are additional coverages that can affect price?

Beyond liability, there are additional types of motorcycle coverage you can purchase that would increase your cost. For example:

• Comprehensive and collision – Where liability pays for the damage to another vehicle, comprehensive and collision coverage pays for damage to your motorcycle from a covered loss.
  • Collision coverage covers hitting or being hit by another vehicle or another object, or if your bike overturns.
  • Comprehensive coverage applies when your motorcycle is stolen or damaged by something other than a collision. For example: fires, floods or vandalism. 
• Uninsured/underinsured motorist (UM/UIM) – Helps protect you when you are hit by someone who does not have insurance or enough insurance.
• Protective gear coverage – If you have riding gear, such as a helmet, gloves or jacket, this type of coverage will pay for damages to them in the case of an accident or theft. This is included at State Farm with comprehensive coverage and collision coverage.
• Roadside assistance – Similar to roadside assistance for cars, this coverage will provide assistance if you need a tow or to jumpstart a dead battery. This is included at State Farm with comprehensive coverage. 

With a variety of factors impacting your insurance rates, it’s important to research and understand your motorcycle insurance policy. Your State Farm agent can walk you through the policy, what it covers and potential discounts available.