Understanding motorcycle coverage and ways to lower insurance rates can be the difference between a client staying or leaving. You can clear up confusion by advising your clients on how motorcycle insurance is calculated.
How Much Does Motorcycle Insurance Cost?
Motorcycle insurance premiums vary depending on many factors. Speak with your client about the aspects that influence their rates such as their:
- Age
- Gender
- Location
- Cost of the motorcycle
- Customized motorcycle parts
- Credit history
- Driving record
These items are all considered as part of the client's risk factor. Insurance companies consider the possibility that an insured will file a claim. Those who seem more likely to file a claim tend to pay more in insurance. Younger drivers with expensive vehicles and bad credit will pay a lot more in motorcycle insurance than experienced older drivers. With motorcycles, insurance agencies also consider the use of the motorcycle and the expected annual mileage.
On average, motorcycle insurance costs $702 a year. This also depends on the amount of insurance and type of insurance. North Dakota has the lowest motorcycle insurance rates with an average of $382 a year while California has the most expensive at an average of $1,360 per year. Motorcyclists that are 18 years old pay the highest in motorcycle insurance, paying an average of $2,628 a year.
If your clients have a poor driving record, their insurance premiums increase dramatically depending on the violations they've committed.
Changes In Motorcycle Insurance Premiums By Traffic Violation
| Violation |
% Increase In Premiums |
Average $ Increase In Premiums |
| DUI |
10%-100% |
$498+ |
| At-Fault Accident |
40% |
$281+ |
| Multiple At-Fault Accidents |
93% |
$652+ |
| Speeding Ticket |
22%-30% |
$201+ |
| Average Increase |
62.25% |
$433 |
Depending on the state, certain violations will only affect insurance premiums for a few years while others remain for a longer period of time. DUIs, for example, tend to remain on someone's driving record for 10 years or more.
How To Lower Motorcycle Insurance Premiums
With or without committing traffic violations or being considered a "high-risk" driver, motorcyclists can find ways to save money on motorcycle insurance. Recommend ways for your client to save on motorcycle insurance by:
- Searching for discounts, such as motorcycle safety class discounts and multi-policy discounts
- Paying higher deductibles
- Increasing their credit score
- Driving safely
- Decreasing unnecessary coverages
Each client is different and has unique needs for their motorcycle. Some need extra coverage for their motorcycle while others may only require the minimum coverage. In Texas, motorcycles must have:
- Bodily Injury Coverage: $30,000 per person
- Bodily Injury Coverage: $60,000 per accident
- Property Damage Coverage: $25,000
Motorcycle riders should also invest in comprehensive, collision, uninsured/underinsured motorist and personal injury protection. It's important for clients to understand that minimum liability won't cover them or their passengers in the event of an accident. Liability steps in for other drivers and passengers. Texas is considered an at-fault state, which means the person who caused the accident is responsible for handling the damages—meaning their insurance company is expected to pay for the accident they caused. Encourage your clients to purchase the right amount of insurance for their motorcycle. There are ways to purchase cheaper motorcycle insurance, but safety shouldn't be sacrificed to save money.
Discounts to Offer Motorcycle Riders
- Mature Driver Discount. A mature driver is typically an older driver who has completed a mature driver course.
- Safety Course Discounts. There are specific courses for motorcycles that can be completed for an insurance discount.
- Multi-Policy Discounts. If the rider has multiple policies with an insurance agency, they may qualify for a discount.
- Multiple Motorcycle Discounts. A rider may qualify for a discount for insuring multiple motorcycles with the same agency.
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