Next to a car, a motorcycle is one of the most common vehicle expenses you’re likely to take on in your lifetime. After you add up the cost of a bike purchase, fuel, repairs, and accessories, owning one can get expensive.
Then you’ll also need to buy insurance. When it comes to cars, many people pay for more auto insurance than they need, and the same goes for motorcycles. No one wants to spend more on motorcycle insurance than necessary, but it’s easy to do.
Luckily, there are ways to reduce the annual cost of motorcycle insurance for people of all ages. Here are five of the best ways to save money on motorcycle insurance.
1. Become a “Preferred Operator” by Keeping Your Driving Record Clean
Motorcyclists can become known as a “preferred operator” by their insurance providers. This is similar to the “preferred driver” or “preferred risk” driver designation given by auto insurance companies to their most responsible customers. Not all insurers offer this distinction, however, and its definition may vary from one insurance provider to the next.
Someone with the preferred operator status is someone with a good driving record. That means you’re a low-risk vehicle operator with little to no, claims, accidents, citations (tickets), or other driving violations on your record. Additional criteria used to qualify someone as a preferred operator could include credit score, policy payment history, coverage length, and other details.
But I wouldn’t get too caught up on the precise classification as nearly all insurance providers will reduce your rate for being a responsible rider and customer. However, it can’t hurt to ask about it when getting quotes and comparing that to the overall insurance costs and benefits elsewhere.
2. Take an Approved Rider Safety Course
Hands down, the quickest and most popular way to save on motorcycle insurance is to register for one or more rider safety courses. These training courses usually last a couple of days and cover everything from the basics of bike operation to navigating relevant state laws.
Insurance companies have a vested interest in making sure their customers are the safest and most responsible riders possible. More motorcycle accidents equate to more claims filed, which means higher expenses for the insurance company. Because of that, some insurance providers are willing to reduce your premiums by up to 15% for being professionally educated and trained.
Some states require you to attend training courses to receive your motorcycle permit or endorsement. These courses may already be enough to qualify for a discount with your insurer. Be sure to check with your insurance company, or potential insurance company, regarding which training courses they accept so you aren’t spending more money and time than you need.
The basic and advanced courses offered by the Motorcycle Safety Foundation (MSF) are usually approved and will not only help you receive lower insurance rates but also provide you with the knowledge and tools needed to better protect yourself, your motorcycle, and others, while operating on the open road.
3. Don’t Pay for Unnecessary Insurance Coverage
As with auto insurance coverage, there are some legal requirements based on the state you live in and whether you own the bike outright or are financing the motorcycle. Then there are multiple optional coverages to choose from, with carriers offering unique coverage features too.
Nearly every rider will need liability coverage, but other common coverage options, such as comprehensive and collision, could feel like a waste of money for you. For example, if you’re riding an old motorbike that isn’t highly valuable, paying for the extra coverage might not make sense to you. The cost of coverage over time could add up to more than the motorcycle is worth.
Another popular way to save money here is to see whether you need full-time coverage or a policy that only covers a certain number of miles or months driven per calendar year. If you don’t plan to ride your bike regularly or put it away during the winter months, you might be able to save money by exploring low-mileage, lay-up, and short-term insurance policies.
4. Increase Your Motorcycle Insurance Deductibles
An insurance deductible is the amount of money you may have to pay “out of pocket” on a claim before the insurance company will cover the rest. If you’re a safe rider that doesn’t ride your bike very often, your risk of getting into an accident will be lower than someone who rides every day. Increasing your collision deductible can decrease your monthly insurance premium significantly.
Similarly, if you store your motorcycle inside or in another safe and secure location, you should consider increasing your comprehensive deductible. Comprehensive insurance pays for damages other than collision, like theft, fire, weather damage, vandalism, and “acts of God.” Not everyone wants or needs comprehensive coverage, but many lenders will require it for a motorcycle loan.
Another often required coverage with a deductible is uninsured motorist coverage. If you’re an infrequent rider, your chances of being hit by an uninsured motorist go down. In this case, an increased deductible and a lower premium might make the most sense for you.
Just be sure to explore each option and calculate the potential costs to find the right balance of deductible versus monthly premium amount for your financial situation and insurance usage expectations.
5. Join a Motorcycle Riding Club
There are numerous benefits to joining a motorcycle club. Some include having more opportunities to meet others, participating in events, and other exclusive activities. Another major benefit of membership is access to discounts on products and services.
One of those discounts is on insurance services. For example, Progressive offers a discount on motorcycle insurance if you belong to the Harley Owners Group or United Services Automobile Association (USAA). Other insurance agencies may offer discounts for belonging to those national associations or others too. Be sure to ask them.
Top 4 Motorcycle Associations Nationwide
- AMA – American Motorcycle Association (open to all riders)
- Motorcycle Touring Association (open to all riders)
- BMW Motorcycle Owners of America (open to all riders)
- Harley Owners Group (must own a Harley-Davidson brand motorcycle)
There are also many regional groups worth looking into. However, the smaller the group, the less likely they will partner with major insurance providers and other nationwide businesses. But they may have great partnerships with the local community.
5 Other Top Ways to Reduce Motorcycle Insurance Premiums
Here are five other top ways to reduce the amount of motorcycle insurance premiums you pay over the years.
- Receive a multi-policy discount by bundling with home, condo, renters, auto, boat, or RV insurance.
- Pay your policy in full all at once.
- Sign up for automatic bill-pay to have your insurance payments transferred electronically from a checking account each month.
- Safety-equip your motorcycle with an airbag, anti-lock brake system (ABS), alarm technology, and anti-theft device.
- Limit bike modification to cosmetic items since engine modifications and other performance improvements could cause bikes to be considered riskier to ride.
Final Thoughts on How to Save on Motorcycle Insurance
There are numerous ways for a person to save money on motorcycle insurance. Start by being realistic about your riding habits, then tailor your motorcycle and insurance coverage to those realities.
Review your policy options fully and speak with an insurance agent to discuss coverage choices. However, don’t assume everything the agent tries to sell you is necessary. Even the best agents can get it wrong regarding your specific situation, desires, and needs. They are the insurance experts, though, so heed that information and consider their recommendations while doing a full evaluation of what’s available.
Once you have done your research, you will be armed with tips to help you obtain cheap motorcycle insurance from a reputable company that protects you properly, as well as your bike and your equipment, in a time of need.
