6 Factors That Can Affect Your Motorcycle Insurance Cost

There’s nothing like the thrill of riding a motorcycle. But before you hit the road, it’s important to make sure you’re covered with the right insurance. Knowing what goes into your insurance costs can help you make smart choices and maybe save some money.

Let’s take a look at why motorcycle coverage can be pricey, what affects your rate and what you can do to keep your costs low.

Why motorcycle insurance can be expensive

In the US, motorists pay around $571 per year for full-coverage motorcycle insurance. Prices can vary depending on what state you live in, your age and the type of bike you ride.

Motorcycles are generally riskier to insure because riders don’t have the same protection as car drivers. If a motorcyclist is in an accident, injuries are more likely and can be more serious. And, the bike is more likely to be totaled.

Your age, riding experience and driving record can raise your insurance rates. If you’re a younger rider or if you have a few tickets or accidents on your record, then your cost will be higher. Your credit score and your insurance company can also affect the rate you can qualify for.

6 factors affecting motorcycle insurance costs

Here are 6 key factors that can affect your monthly motorcycle insurance premium.

1. Where you live

State laws play a big role in deciding motorcycle insurance premiums, with each state having different insurance requirements. Insurance costs are typically higher in cities than in rural areas because there’s more traffic and an increased risk of theft. 

Weather patterns matter, too. Seasonable places with longer riding seasons can mean higher rates because riders spend more time on the road.

2. Your age

Riders under age 25 usually pay more because statistics show they’re involved in more accidents. As you get older and gain riding experience, your rates will likely go down.

3. Your driving history and experience

Insurance companies look closely at your driving record when setting rates. Speeding tickets, accidents and claims can increase your premium. Some insurers offer lower rates to riders with more experience. Many companies also offer discounts for experienced riders who have gone several years without any incidents.

4. Type of motorcycle you own

The make, model and style of your motorcycle will affect insurance costs. Sport bikes and high-performance motorcycles cost more to insure than cruisers or touring bikes. This is because high-performance motorcycles are associated with more accidents. Newer bikes often cost more to insure than older ones.

5. Where you store your motorcycle

How and where you store your motorcycle affects your premium. Keeping your bike in a locked garage rather than parked on the street reduces the risk of theft or damage. That can help lower your rates. Some insurers offer discounts for motorcycles with a security system or tracking device.

6. Type of insurance coverage and deductible

The coverage you choose has a major impact on your premium. A “basic liability” insurance policy, also known as minimum liability coverage, costs less but provides less protection. “Comprehensive” insurance costs more but offers better protection, including collision coverage, theft and weather damage. 

Your deductible also affects your premium. Higher deductibles mean lower premiums upfront. If you have to file a claim, you could end up spending more money later.

Tips to reduce motorcycle insurance costs

Some factors that affect your insurance rates can’t be changed. Still, there are several ways you might be able to lower your costs:

• Complete an approved motorcycle safety course.
• Join a recognized motorcycle association.
• Store your bike in a secure garage or use quality locks.
• Consider buying a lower-risk motorcycle model.
• Bundle your motorcycle policy with other insurance for multi-policy discounts.
• Increase your deductible to lower monthly premiums.
• Compare quotes from insurers to find the best coverage. 

Review your coverage annually as your situation changes. What worked best for you last year might not be the most cost-effective option this year.

Ride smart and save on your motorcycle ownership costs

Finding the right motorcycle insurance doesn't have to be hard. Whether you’re improving your riding skills or comparing quotes from different insurers, small changes can lead to meaningful savings.

At Navy Federal Credit Union, we understand the importance of protecting your investment. Explore our motorcycle loans designed for riders like you and know you’ve made a smart choice.