How Are Your Motorbike Insurance Premiums Calculated?

Most people assume that the bulk of an insurance premium is down to the risk of theft. But here’s the thing; nothing could be further from the truth! The thing about insurance is that there are many factors that influence the total premium cost.

That applies to all forms of insurance. But if you own a motorcycle, have you ever wondered how insurers arrive at the premiums they offer you? It’s rather complex when you break down every element of motorcycle insurance.

In my previous article I have discussed about car finance. In today’s blog post, I will detail some of the main factors that influence your motorcycle insurance premiums. Here is what you need to know.

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Age

Perhaps an unsurprising element of any motorcycle insurance policy is the age of the rider. As with cars, your age will contribute to how much of a risk you are. Young and inexperienced riders are more likely to make a claim on their policies than older and seasoned ones.

As a young motorcycle rider, you are more likely to avoid road rules so that you can quench your thirst for riding fast. The sad truth is that the consequences of such actions are worse than a high insurance premium.

I knew of a guy that was in his early twenties. He owned a fast motorcycle and was well-known for performing “stunts” in front of other road users to “impress” them.

He almost killed himself one day when he was riding too fast and ended up going into the back of a truck carrying scaffolding tubes. He sustained some injuries and damaged one of his eyes as a result.

A few months later it seemed he ran out of his nine lives. According to police investigators, he mounted the kerb at high speed. He then went head-on into a lamp post, something that killed him almost immediately.

Without sounding like a prophet of doom, these are just some of the stupid things young bike riders do. That is why motorcycle insurance for such people costs a small fortune.

Location

Where you live is another factor that will influence how much your motorcycle insurance premiums will cost. Insurance companies have a lot of data available to them, some of which comes from the government.

Insurers use statistics to determine what each person will pay for their policies. And the same applies for those getting motorcycle insurance. One all-important statistic is vehicle crime and accidental damage.

Some areas are more prone to theft and accidents than others. You can check this for yourself by getting a motorcycle insurance quote at your home address, and one in a more affluent part of town.

Gender

Some folks assume that female riders are safer on the roads than male ones. But since 2012, all insurance companies are not allowed to calculate risks based on gender.

To be honest, in the days before the change of legislation, gender didn’t have much of an impact on insurance premiums. That’s because most motorcycle riders are male.

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Your ride

I know that I am stating the obvious here, but the motorcycle you own will have a big impact on how much your premium will be. Cheaper motorcycles with smaller engines are less likely to attract high premiums. Whereas the more-expensive superbikes on the market will attract higher insurance costs.

There are many reasons why your ride can affect your insurance premium. Insurers will end up charging more for motorcycle that cost more to repair or replace in the event of a claim. And what if you own a classic, modified or rare motorcycle? Don’t expect cheap motorbike insurance quotes from all insurers!

Bear in mind that insurers use your personal details combined with what you own to calculate your premiums. So a young person with a superbike will pay a small fortune for insurance compared to an older biker with decades of experience.

The value of your motorcycle is another factor that impacts your premium. Do you ride an older motorcycle worth around £500 or less? If so, third-party insurance will be cheaper than a fully-comprehensive policy on a brand new model!

Security

Is your motorcycle a desirable model attractive to thieves? If that’s the case, your premiums will be high regardless of how old you are or how good a biker you are on the road.

For those of you that own “desirable” motorcycles, it’s essential you take any steps necessary to reduce the risk of theft. Insurers are always interested in learning about where you store your bike at night. That’s because it helps them to mitigate your insurance premium costs.

Here are some top tips to reduce your chances of your motorcycle getting stolen:

  • Out of sight, out of mind. When you aren’t using your motorcycle for long periods, store it in your garage. Some people even wheel their bikes to their back gardens to prevent them getting seen in public;

  • Fit a security system to your motorcycle. Most of today’s bikes come with some kind of alarm system – but not all do. If yours doesn’t, consider getting an alarm and immobiliser system fitted;

  • Take car when leaving your motorcycle in public. Avoid leaving your pride and joy in dark and unlit areas. Such places are a dream come true for motorcycle thieves. That’s because they can steal your bike without getting disturbed by anyone.

Some owners fit GPS trackers to their motorcycles as an added security measure. You will often find people do this to high-value motorcycles or ones that are rare and desirable to organised crime gangs.

It doesn’t matter what form of aftermarket security you fit to your motorcycle. It’s always important you tell your insurance company about it. That’s because there is a high chance they can give you a discount on your motorcycle insurance premiums!

Other riders

You would think that if more than one person uses your motorcycle, your insurance will be cheaper. That’s the case for car insurance, but not for motorbike insurance I’m afraid. If possible, ensure you are the only person insured to ride your bike so that your premiums are lower.

See you soon!

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