Motorcycle Insurance Articles
Why Your Motorcycle Will Cost More To Insure In Certain States
2011-01-20
There is no set price for motorcycle insurance policy because there are many factors that affect motorcycle insurance costs. The state where a person resides also affects motorcycle insurance premium. Each state has different regulations and laws for motorcycle insurance, which eventually affects motorcycle insurance prices. Take a look at the factors that contribute towards more insurance costs in certain states.
Insurance companies rely a lot on statistics to determine insurance premium. They review state based statistics in periodic intervals. They have reports about the number of accidents, deaths, traffic violation and vandalism taking place in each and every state. If you live in a particular state where incidents of accidents and traffic violation are high, you have to bear higher premium in comparison to those states where such incidents are low.
Likewise, motorcycle insurance costs would be higher in those states where there are high reports of theft and vandalism. Motorcycle insurance companies keeping raising their prices as and when such fraudulent incidents increase drastically in a particular state, which is why you may witness huge price variation from one state to another.
Majority of the states tend to share details about driving incidents with each other. Few of them automatically supply details about driving violations to the Department of Motor Vehicles. However, not every state discloses such information, which is why the insurance company may not be aware about your traffic violation incidents in a different state.
Due to lack of awareness, the insurance company may not increase the premium, despite the fact that there are loads of speeding tickets issued against your name in a different state. On the other hand, few states are very particular about reporting such incidents, which implies that the applicant will have to pay more towards motorcycle insurance premium while applying for a fresh policy in a different state.
Few states have regulations that govern insurance costs. For instance, insurance companies will be forbidden by law to raise prices on their own. In most cases, the insurance company will not be able to increase the price of the policy after issuing it to the consumers, unless special conditions are involved.
On the other hand, few states do not carry such regulations, which imply that insurance providers are free to raise their prices as per their will and wish. More than often, applicants have to bear higher premium while insuring their motorcycles from such states.
These are amongst the major factors that result into higher motorcycle insurance rates in certain states. It's advisable for an applicant to talk to a licensed agent only to ensure that one secures a good policy.