Motorcycle Insurance Articles
No Fault Accidents And How They Increase Motorcycle Insurance Premiums
2010-09-16
States that offer no fault motorcycle insurance systems usually have lower motorcycle insurance premiums than the traditional tort state. This is because in a no fault state, accidents are kept out of the court system; riders can't litigate to receive payment and instead, their own insurance pays for their costs. Motorcycle insurance companies save a lot of money off of these court costs, and the savings are passed on to their customers. However, no fault accidents can greatly increase a rider's motorcycle insurance premiums-even if the policy holder wasn't at fault in the accident. From the motorcycle insurance company's perspective, the simple fact that the policy holder was involved in one accident raises the chances that the policy holder will be involved in a second accident. While this may not seem fair, it's important to understand the effect that no fault accidents can have on your motorcycle insurance premiums.
After a no fault accident, it's not uncommon to see your rates rise about 20-30%. Generally, premiums will increase less than they would if you were proven to be at fault for the accident under traditional tort insurance law. However, premiums increase differently from one company to the next. While motorcycle insurance companies are required by law to explain these increases in their policies, their explanations are often extremely complex and involve many other factors, such as your age, the model of your bike, and your zip code. Multiple no fault accidents will result in multiple policy cost increases. Each successive accident will usually result in a bigger increase in your motorcycle insurance premiums, so it's important to do whatever you can to ride safely and to keep accidents off of your policy.
You can take defensive riding courses to limit the impact of an accident on your bike's insurance rates. These courses are sponsored by most major insurance companies and they're a breeze for experienced riders. They'll often result in hefty discounts, and can cancel out the effects of no fault accidents. Shopping around for a better motorcycle insurance premium can also help you control your policy cost. Check with your home insurance company or your car insurance company for a combined policy, and use the internet to compare multiple quotes quickly and easily.
There's no substitute for careful driving, of course, and after a few years, a no fault accident should disappear from your motorcycle riding record. Your motorcycle insurance premiums will drop back down to a reasonable level, or even lower if you've taken classes or used comparison shopping to counteract the effects of the no fault accidents on your policy.