Motorcycle Insurance Articles
The Speed Of A Motorbike And How It Affects Motorcycle Insurance
2010-11-17
Motorcycle insurance rates depend on many factors, one of which is motorcycle speed. Speed can be a thrilling experience. It may be one of the main draws of motorcycle riding to some enthusiasts but, to an insurance company figuring motorcycle insurance rates for an eighteen year-old who's planning on riding a 1000cc 'crotch-rocket', speed equals risk and risk translates to higher premium costs. It's really as simple as that.
Motorcycle technology has become so advanced that the top motorcycle speed of one of today's 600cc sport bikes is more than what was achievable by a motorcycle with an engine twice that size two decades ago. And, to make matters even riskier, major manufacturers like Honda, Yamaha, Suzuki and Kawasaki have long been in a competition to see who could build the fastest bikes in each class. It's actually gotten to the point where the bigger bikes have been fitted with limiters that won't allow them to go faster than 200 MPH. The manufactures are afraid that if they let it get too out of hand they will be the recipients of unfavorable traffic law legislation.
Why anyone would want to go that fast on a two-wheeled machine is beyond the comprehension of most people with a logical outlook on the cause and effect aspects of reality and, when it comes to the attitude of insurance company underwriters, logic is a prime motivator. If they see that the average life expectancy of a powerful sport bike owned by a rider under the age of twenty-five is less than 1000 miles before disaster strikes they're certainly going to factor this into their determination of motorcycle insurance rates.
Actuarial tables don't lie and the law of large numbers tells the insurance companies that increased motorcycle speed translates to increased risk and more claims paid out. Since insurance companies, like every other business, are motivated by making a profit, you can bet that they are going to adjust things so that when someone wraps their new bike around a telephone pole or collides with a semi-tractor trailer the insurer doesn't come out as the net loser. The bottom line is this: if you are driving a big, powerful motorcycle capable of impressive speeds you're going to pay for it in the form of higher motorcycle insurance rates.
The good news is, if you are an older driver, especially with a history of safe riding, you should qualify for lower premiums. Also, if you own a road cruiser or classic, older bike rather than a sport racer this will help lower premiums too.