Motorcycle Insurance Articles
How The Age Of A Motorcycle Can Affect The Insurance Premiums Paid
2010-05-05
Just as the age of the driver affects vehicle and motorcycle insurance premiums, so too will the age, make, and model of motorcycle affect insurance premium costs. For some drivers, cost differences will be minimal. Other combinations, such as a young driver with a new fancy bike, the premium is likely to cost more than the monthly payment. For this reason, it is important to weigh the relative costs of buying a new versus a pre-owned bike, a sport versus cruiser version of a bike, and also to factor in funds available to allocate to motorcycle payments and motorcycle insurance premiums.
Motorcycle insurance premium rates for an older model of bike regardless of model will be lower than a newer version of the same make and model. Additionally, owners of older cycles may not wish to opt for collision coverage depending on the deductible level chosen. Motorcycle experts and longtime enthusiasts warn against dropping comprehensive coverage even on an older model, however, as motorcycle theft rates are persistently higher than auto theft rates. Yet, the fact remains that weighing risk of theft against opting for reduced coverage levels for older bikes and comparing coverage duplications between health care and auto insurance, can also affect motorcycle insurance premiums on an older bike. It is important to shop around and compare rates between insurance carriers - some carriers offer deeper discounts for older cycles and multi-vehicle discounts that can be advantageous.
Regardless of age, a sport or exotic bike, or a cycle with a bigger engine will inevitably cost more to insure. Weighing features desired against buying new or pre-owned may have a significant impact on insurance premiums. Coverage levels should also be weighed against estimated ride time and plans to participate in training and safety classes or non-competitive riding associations. Insurers will, of course, evaluate driver safety record and age of driver, but for cycle owners they will also evaluate the length of time and number of years spent riding. To an insurer, logging a significant number of riding hours is a fast track to paying lower premiums.
With a pre-owned bike, insurance rates also factor in depreciation levels. Depreciation hits hardest in the first year after purchase, after which rates flatten out until the bike hits age five or so. So the least expensive cycles to ensure, all other elements factored out, will be two to five year old cycles of the cruiser variety. Motorcycle owners should take caution to recognize the difference between "pre-owned" or "older" cycles and "vintage" models, for which premiums may be significantly higher. All in all, it is clear that the age of the cycle affects premiums - many times in favorable ways.