Motorcycle Insurance Articles
Managing Your Motorcycle Insurance Costs By Changing Your Deductible
2010-10-30
If you recently purchased a motorcycle, or if you have been a rider for decades, you know you need to carry motorcycle insurance for both liability and collision. Depending on your type of bike, you are most likely required to have a certain amount of insurance to cover your financial obligation to the lending institution that gave you the loan for your bike. You are also required to carry liability insurance to cover any injuries to people or possessions that you might cause while you are operating your motorcycle. Both these costs are usually static, meaning that they will not change. You can manage your motorcycle insurance costs one other way, however, by adjusting your motorcycle insurance deductible.
Motorcycle insurance, and all insurance, really, is an agreement between you and your insurer. As a driver, you guarantee to obey the laws and drive safely. In return for that guarantee and a premium, your carrier will pay any claims for which you are deemed to be at fault.
If you are a good driver, you can lower your motorcycle insurance costs by raising your motorcycle insurance deductible. That means that you feel the likelihood of your having an accident on your motorcycle is slim, so you are willing to have a higher deductible. A higher deductible means you will pay for any repairs to your bike up to a certain limit. After that, your insurance company will pay the difference. The higher your deductible is, the lower your payments will be and the more you will have to pay in the event of a claim. The lower your deductible is, the more you will pay for your insurance and the less you will have to pay per claim.
In the universe of insurance requirements, there is really not much play when it comes to shaping your premium. Usually, your motorcycle insurance costs are directly tied to the value of your motorcycle and the amount of liability you are required to carry.
The only other real variable is your driving record, which is also something that cannot be modified or altered. A driving record goes back years, and if you drove recklessly as a youth, you are likely to carry that stigma for a long while. That means your premiums will be high to start. The only way to improve your record is through a pattern of good driving. Good driving records result in lower premiums.
Therefore, the only place you are likely to find any wiggle room is within your motorcycle insurance deductible. Keep it as high as possible. The amount you save in the worst case scenario of a collision will be worth the slightly higher premiums.