Motorcycle Insurance Articles
How Motorcycle Insurance Costs Change With Time
2010-11-21
There are hundreds of factors that can affect a motorcycle owner's insurance costs, but one of the most overlooked is simply the passage of time. As time goes by, many bike owners will see their rates change drastically, especially if they never take the time to look online and compare their insurance costs to other quotes. This is because motorcycle quotes change over time for a reason, and understanding the relationship between insurance premiums and time can make it easier to know why your motorcycle insurance costs are increasing or decreasing.
Insurance premiums and time are linked in two major ways, through the state of the economy and through the individual factors that change the risk that the bike's rider poses to the insurance company. The state of the economy's effect on insurance rates is fairly easy to understand. In harsh economic times, insurance companies are forced to be more selective with who their policies are issued to, because they can't take the risk of assigning more policies than they could feasibly pay claims for. This means that over time, it may become more or less difficult to find a good motorcycle insurance policy with low premiums depending on the economy. Things like inflation also affect the cost of motorcycle quotes in a less immediately noticeable way.
The risk factors of the biker are far more important. As a bike owner gets older, his or her chances of being involved in an accident start to go down. A 16 year old rider will therefore pay a lot more in motorcycle insurance premiums than an older rider, because the insurance company assumes that the 16 year old will take more risks and ride more dangerously. This assumption isn't based on prejudice against teenagers; it's based on years of compiled insurance company actuarial data. Older riders receive better motorcycle insurance costs until late in life, when rates start to climb again. Experience is also key, and a 45 year old bike rider who has been on the road for 20 years will get a much better rate than a 45 year old rider who's insuring his first bike.
If your motorcycle insurance costs have increased or decreased, it may be due to one of these factors, particularly if you don't know of any other reason for the increase (such as an insurance claim or a traffic citation). You can always find out why your motorcycle insurance premiums changed by calling your insurance agent and asking for clarification, and this is a good habit to get into. No biker enjoys overpaying, and by monitoring your insurance premiums you can avoid this.