Motorcycle Insurance Articles
Knowing When Motorcycle Insurance Claims Will Raise Your Premiums
2010-07-06
Motorcycle insurance quotes are dependent on several factors, and can vary greatly based on the total coverage written into a policy. Among those factors are motorcycle insurance claims---items that can have a big impact on premiums paid by the insured parties.
Searching for decent motorcycle insurance quotes requires patience, and the best rates are found only by comparing the premium prices of several different companies. Age, driving history, the type of motorcycle to be insured and will guest passengers use the bike, are part of the underwriting process. Some firms even question if a potential customer frequents less than desirable neighborhoods. Further, the services provided by an insurer in the case of an accident can boost premiums. Repair or replacement provisions, and where repairs might be made, are often included in insurance contracts.
The impact of claims on motorcycle insurance premiums can be substantial. Insurance companies look to make money, and any claim puts a hold on some of their profits. Even not making a claim can raise premiums. Should an insurance company discover that a claim was not filed, and the other person involved in the accident did file with his insurer, then both parties could find their rates increased.
Letting a friend drive could also prove costly, even if he has insurance. The first party's insurance record is on the line when a bike is loaned out. Any accident claim goes to the original insurer, leaving the bike's owner subject to higher rates, just as if he had been driving himself.
Don't be fooled into thinking that a small claim won't have as big an impact on premiums. Insurance rates are based on risk, along with value. Although your insurance company might not pay out anything to settle a small claim, an accident is what it is and your insurance costs are possibly headed upward.
Insurance claims made by automobile drivers involved in accidents can also work to increase motorcycle insurance quotes. Insurers see accidents as generic, all part of one big package that has to be paid for by the insured. Premium costs can be controlled to some extent. Buying a less expensive bike can eliminate the need to purchase collision and comprehensive insurance, which can account for as much as two-thirds of the premium. Setting a higher deductible can also reduce premium rates.
When searching for the best motorcycle insurance quotes, be persistent. Looking for good motorcycle insurance means dealing with reputable companies, whether large or small. Let them convince you of their reliability and if they meet your motorcycle riding needs. Put yourself in the driver's seat.