Motorcycle Insurance Articles
Should You Increase The Deductible On Your Motorbike Insurance
2010-03-14
There are few things as satisfying as an open highway, good weather, two tires and a roaring engine. For many, motorcycling is more than simply a hobby or summer entertainment - it is a way of life. While the bike may need to be put away in winter, and upkeep done in the summer, it is a labor of love that keeps the wheels on the road. For any motorcycle owner, having the right insurance to make sure that both they and their bike are safe is essential. Motorcycle insurance is a higher-cost option than car insurance, however, simply because motorcycle accidents represent a higher risk to the insurer and a greater possibility of injury for the rider. As a result, motorcycle insurance premiums will always be far higher than those for a car.
One way for owners to lower their premium is to consider raising their motorcycle insurance deductible. This is the amount that a customer must pay out after an accident before the insurance company will step in and pay the remaining balance. Typically, this deductible is set reasonably low, in the range of $500. Since almost all motorcycle accidents result in substantially more damage to both people and property than $500, insurance companies know that they will often have to pay out. Any motorcycle insurance quote will reflect this.
If, however, a rider chooses to increase their deductible, say to $2000, there is a smaller chance that the insurance company will be on the hook to provide any money. This, in turn, leads to smaller premiums since a larger portion of the accident cost will be borne by the consumer. Up front, this will almost instantly lower your motorcycle insurance premium. However, be sure that you can afford the new deductible. A $5000 deductible will make your payments far cheaper, but an injury accident which destroys your bike may leave you in a position where you cannot produce that $5000. Even in situations where another driver or rider is at fault can pose a problem if they refuse to accept responsibility, or if they do not have proper insurance coverage, or if they flee the scene. A higher deductible means lower rates, but it does not come without a risk.
Despite this, raising a policy's deductible, in addition with adding safety features such as an alarm to your bike and making sure you are driving the bike with as much skill and safety as possible can go a long way to minimizing the large amount of money which insuring a motorbike often requires. Although it comes with a number of inherent risks, raising a policy's deductible may be a good way to make your insurance policy work for you.