Insurance Companies and Motorcycle Insurance?

If you own a motorcycle, you will be required to have motorcycle insurance just like car owners need car insurance. Many people forget to factor this into the cost of ownership, and these payments can be very high. Insurance companies generally consider two major groups of factors when deciding whether to insure you and at what rate: first, they think about the value of the vehicle; second, they think about the risk of the vehicle. Motorcycles are typically less expensive but riskier than cars, meaning these two forces will be in opposition.

Motorcycle Property Coverage

Since your motorcycle is likely less expensive than your car, the total cost to replace it in the worst emergency will still remain relatively low. This means your limits do not need to be very high, and low limits lead to lower insurance premiums each month. Property lines on motorcycle insurance are cheaper for this reason alone. Purchasing an expensive motorcycle may result in a property insurance premium that is as high as the one on your car.

Motorcycle Liability Coverage

This is where motorcycle insurance gets expensive. Riding a motorcycle presents a number of inherent threats to the driver. When a motorcyclist is in an accident, the damage done to the driver is typically much greater than if the same person was riding in a car. The open-air quality of the bike, combined with its lower amount of safety features, present more bodily risks.

Aside from these risks, insurance companies tend to think motorcyclists are more thrill-seeking than car drivers. The thrill factor is used across the auto insurance industry to raise or lower premiums. For example, mothers and fathers who drive mini vans have lower liability premiums than a teen with a sports car. Motorcyclists are often to be considered the riskiest of drivers on the road. This stereotype has been reinforced through years of insurance claims.

Health Coverage with a Motorcycle

You may be surprised to learn that more than just your motorcycle insurance will be affected by your choices. If your health insurance provider learns you ride a motorcycle rather than an automobile, the company may decide to raise your premiums as well. Again, there are a few reasons for this raise. For starters, people who ride motorcycles are putting their body at risk of injury in doing so. Medical insurance may need to assist in the costs needed to cover an accident that causes injury to you, the driver.

Further, medical insurance providers attempt to understand whether you are a risk taker when they determine your insurance costs. If you engage in alternative sports, like skiing, SCUBA or sky diving, your medical insurance company may determine you need to pay more in premium. The same is true of motorcycle riders. They are thought to me riskier on the bike, and as a result they are thought to be riskier off the bike as well. Those people who opt to ride motorcycles often engage in other thrill seeking activities, and medical insurance companies will charge them for this.

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