Motorcycle Insurance Articles
How Deductibles Keep Motorbike Insurance Rates Low
2011-06-01
Motorbike insurance rates are determined by many of the same factors as car insurance. For those people with motorbikes, it is important to know how various factors influence the price you pay for your insurance coverage. Insurance is typically determined by the age of the driver, their gender, driving record, location, type of motorbike and the deductible you are willing to take on. Motorcycle insurance deductibles are an option that is up to the driver and can have an impact on your monthly rates. Motorcycles are a bit more dangerous to ride than cars because the driver is completely exposed and a collision could cause serious injuries.
Insurance companies charge for coverage based on average cost and accident statistics. These companies need to know how much the average accident costs in order to determine the proper amount of coverage to offer their clients. Then they take into account the driving history of the individual who is purchasing the coverage. Driving history includes tickets and accidents. These things are indicators of more dangerous driving habits. The more tickets and accidents a person has on their driving record, the more likely they are to be involved in more accidents. This means that the insurance company is more likely to have to pay out on the policy. Motorbike insurance rates increase with every ticket or accident added to your driving record.
Motorcycle insurance deductibles have possibly the biggest impact on insurance rates. The deductible is the amount you are personally willing to pay if involved in an accident before your insurance company needs to get involved. If the driver chooses a very small or no deductible at all, then insurance rates will be much higher. Insurance companies like to know that you are willing to help out with your bill, because if people are personally held responsible, they are more likely to drive safely. The more a driver increases their motorcycle insurance deductibles, the lower their insurance rates will be. This is also due to the fact that the insurance company will have to pay less in the event of an accident because you will have a share in the responsibility financially.
Comparing motorbike insurance rates is a good way to keep costs down. Websites can compare rates of multiple companies at the same time with the user only entering their information once. This is a good way to see the difference between the rates after changing the deductible. Adjusting the deductible when comparing rates can show just how big of an impact that it has on pricing. It is a good idea to make your deductible as much as you can afford to keep your motorbike insurance rates low.