Monday, 9 November 2009

Why Is your Motorcycle Bigger Than Mine But You Pay Lower Motorcycle Insurance Premiums ?

By Ken Henry

Many people, especially those purchasing their first motorcycle, don't anticipate motorcycle insurance premiums that cost more than their motorcycle. Unfortunately, this is a very common occurrence. However, There are some techniques you can use to lower your insurance premium.

Understanding how the insurance company comes up with the quote for your motorcycle insurance will enable you to make changes to the areas that will lower the cost. Insurance premiums are based on a calculated risk factor. This is where essentially, no matter how good a rider you may be, you get penalized for the "foolishness" of all the other motorcycle riders.

Where you live, and where you will be mostly riding your motorcycle will affect your risk level. This is because the increased traffic in a city poses a more substantial risk to the motorcycle rider than the streets and highways in a town or the country. Where your motorcycle will be stored when it is not in use also may be a contributing factor with some insurance companies.

The age, style, and size of your motorcycle will also factor into the insurance premium. Many insurance companies have different rates for motorcycles ranging in size from up to 450 cc, 451 to 750cc and over 750cc. The ones over 750 cc are often termed to be a "big bike" policy. A sports bike, for example, will likely cost you more to insure than a cruiser type bike.

The amount of riding you will do is directly linked to your risk factor and therefore to your insurance premium. Let's face it, the more you ride your bike, the more you are exposed to the risk factors presented by other traffic. City riders tend to have noticeably higher risk rates than country or town riders do.

One method of lowering the cost of your insurance policy that not a lot of people consider is the amount you pay for deductible if you happen to need to make an insurance claim. Many people consider it more worthwhile to trade off a higher deductible rate for a lower insurance premium. After all, most people are not planning on having to pay the deductible on a regular basis.

Modifications also greatly affect the price of your insurance. Therefore it is in your best interest to keep the modifications to a minimum. For new riders, an older bike with a smaller engine will help to keep your insurance rates down. Happy Riding.

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