Average Motorcycle Insurance Rates and Its Affecting Factors

Motorbike accidents are very prevalent in the United States and it is because of this fact that many States in the Country have made it mandatory to have motorcycle insurance. Also, the best part for motorcycle riders is that the average motorcycle insurance rates are comparatively lower than an auto insurance policy. This is a major encouragement for people to opt for motorcycle insurance and stay financially secure in case of an accident.

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There are several factors that judge the average motorcycle insurance rates one has to pay and these rates also vary in huge amounts from one State to the other. This discussion will bring to light all of the important factors that monitor the average motorcycle insurance costs and depict the rise and fall of prices throughout the Country.

What is the Average Motorcycle Insurance Rates in the United States?

Before jumping into the factors affecting the insurance costs, let us first get to know the average insurance cost for a motorcycle in the US. In order to calculate the average rates, a study was conducted using a sample male driver, aged 45 years and rates from all 50 States were compared. An aggregate of the insurance premiums from different insurance providers across different States revealed that the average motorcycle insurance rates in the USA are somewhere around $519.

This rate is far below the auto insurance average rate. It must also be noted that these rates change drastically from State to State and can increase up to 200%.

What are the Average Motorcycle Insurance Costs by State:

By considering the sample rates as per the study conducted using the 45-year-old male driver, here is an explanation of the highest and the lowest average motorcycle insurance rates by State.

1. Which State has the Lowest Average Insurance Cost for a Motorcycle?

Of all the 50 States, 5 had shown the cheapest rates and are about 32% lower than the average rate in the Country (i.e. $519). Also, the States with cheap insurance rates were all found in the Great Plains and Midwest regions except for New Hampshire. Residents of these States have the highest number of motorcycle registrations per person. For instance, South Dakota has about one registered motorbike for every 12 residents and New Hampshire has it per 17 residents. Note that these two States rank 9^th and 10^th in the list of States that provide affordable average motorcycle insurance rates.

2. Which States have the Costliest Average Motorcycle Insurance Rates?

The 5 States that show the highest average motorcycle insurance rates in the US are spread across various regions and vary by almost 73% high from the Country’s average. And as apparent as it seems, these States have the lowest number of motorbike registrations per person due to their high rates. The five states with the highest average rates and the number of motorbike registrations per resident are as follows:

• Louisiana, with one registration for every 67 residents
• Texas, one registration for every 58 residents
• Florida, for every 33 residents
• Michigan for every 32 residents
• Delaware for every 30 residents

All these statistics and figures were calculated by considering a sample policy of about:

• $100,000 bodily injury coverage per person
• $300,000 bodily injury coverage per accident
• $50,000 property damage policy
• $500 deductibles

Based on this sample policy for the 45-year-old male driver, all the above calculations and observations were made.

What is the Impact of the Rider’s Age on the Average Motorcycle Insurance rates?

Apart from the residential area of the rider, the extent and type of coverage plan, and the driving history, ‘age’ of the driver plays an equally important role in calculating the average motorcycle insurance costs.

One must understand that the age of a person determines his/her driving experience and greater the number of years behind the wheel, the lesser insurance premiums he/she pays. In general, a new driver is considered to be riskier to insure in comparison to an experienced driver; and since teens are new drivers they have higher premiums than someone of older age. For instance, the average motorcycle insurance cost for 18 year old is around $2,628 annually, whereas a 50-year-old would pay only $1,434 for the same policy (these rates are by Progressive Insurance Company).

Similarly, the average cost of motorcycle insurance for 16 year old will be far greater than the average motorcycle insurance cost for 21 year old. The reason for these variations is the percentage of risk a driver can pose to the insurance company. Hence, for a sum up, new drivers pay more than those who have years of experience behind the wheels.

Variations in the Average Motorcycle Insurance Rates Based on the Type of Motorcycle a Person has?

The type of motorcycle, i.e. a cruiser, sports or a touring bike, one has can have quite much of an impact on the premiums one has to pay. For instance, expensive bikes are costly to insure than a normal motorcycle. Here are some more details on what will the insurance companies consider before calculating the average insurance cost for a motorcycle:

• Cost of the motorbike: Whether the bike to be insured is highly expensive or not is the first thing considered by insurance companies. Expensive bikes, if stolen or damaged, can cost hefty amounts for repair and replacement. Hence, owners of such expensive bikes have more premiums to be paid.
• Safety features: Bikes with anti-lock brakes and other such safety features are less prone to accidents and hence, cost less to be insured.
• Model of the motorcycle: The model or version of motorbike one uses is also a factor of consideration for the insurance companies. This is because; some models are more prone to accidents and have high crash rates. Such models can cost a lot to the insurance companies. Hence, they charge more premiums for motorbike models with high crash rates.
• Theft risk: Motorcycles with costly and flashy accessories are more prone to thefts. Hence, these bikes are considered as a risk to be insured by the companies and hence, charge more premiums.

As per the study conducted, insurance companies find sports bikes as the most expensive model to insure. In comparison to the cruisers, sports bikes are 388% costlier to insure, while touring bikes are 40% cheaper than the two. Though touring bikes have a higher average cost, the premiums are much less in comparison to the other models. With this said, one can understand that the type of bike he/she chooses to have will have a direct impact on the average motorcycle insurance rates.

Most Common Reasons for Motorcycle Insurance Claims in the US:

Knowing about the reasons for insurance claims can be very helpful to understand the type of coverage one must have and eventually manage the average motorcycle insurance rates one has to pay. According to the GAO i.e. the Government Accountability Office, the total amount of loss caused due to motorcycle crashes is about $16 billion in the US. These costs include almost every expense related to bike accidents. From the obvious medical care costs and property damage charges till insurance claims and loss of wages, all these are included in the $16 billion amount.

Since the year 2010, the number of bike accidents has gone from 82,000 to about 88,000. Along with this, medical care has also become highly expensive.

A research by Progressive reveals the following prevalent reasons for insurance claims in the US:

• Single vehicle accidents have called for the highest insurance claims in the Country.
• Seconding it are the rear end accidents.
• The third position is grabbed by thefts and stolen claims. Motorbikes are more prone to thefts in comparison to cars or other heavy vehicles. Bikes are small and can be easily towed into a carriage van, making it an easy and hassle-free theft for thieves.

As per the statistics presented by the National Insurance Crime Bureau, motorcycle thefts have increased by 2% (i.e. up to 46,467 in figures) in the year 2016; but this figure is far less than the number in 2006.

In the year 2016 research, California reports to have the highest percentage of thefts (up to 7,506 in numbers) and surprisingly, has the highest number of motorcycle registrations (about 800,000). Florida ranks second with about 4,482 bike theft cases.

To sum up, all these facts and figures and the points discussed in the previous sections were meant to answer the most common question people ask: ‘what is average motorcycle insurance cost?’ With the above-discussed information, one can understand the variations in the average motorcycle insurance rates and can now shop for a suitable deal by considering these factors.