Motorcycle Insurance Articles
New Riders And Their Effect On The Overall Price Of Motorcycle Insurance Rates
2010-09-16
Motorcycle insurance costs seem to be constantly on the rise in America as roads become more dangerous and more cars and other large automobiles are on the road. It is easy to miss even a cautious and skilled rider in a rainstorm or with low visibility, sending them off of the road and into the ditch. For insurance companies, this means insuring any motorcycle rider, regardless of their riding history, represents a risk and therefore greater premiums. While insurance companies do partially base their rates on the driving records and habits of the individuals that come to them with applications, there are some overarching effects that determine basic motorcycle insurance costs. New riders, as an example, are one thing that significantly impacts what all riders will pay for their insurance.
New riders represent the greatest amount of liability for an insurance company- not only do they not have a record that can be examined to determine their likelihood to be involved in collisions, but they are also new to their bike and to riding itself, making them less able to handle unexpected events on a roadway, and more likely to take risks and chances that they are not prepared for. As a result, insurance companies will always charge new riders more, regardless of the type of training that they have had, but this same cost does inevitably bleed over to older and more experienced riders as well.
The reason for this is that the payouts needed to settle claims that are generated by new riders are often more than the premiums coming in to a company as a whole. In order for the company to both settle their debts and turn a profit, insurance rates for all riders are increased to offset the effect of only a segment of the riding population. While older riders will be able to find discounts on their insurance and ways to make their motorcycle insurance costs far less than those of their brethren with less riding experience, the simple fact is that any company which insures new drivers will have to charge all riders more. Companies are simply not able to viably operate without making such choices.
While this can seem unfair for the experienced rider, it must be borne in mind the insurance company has very little choice in the matter. While they could choose to not insure new riders, they do need to maintain a stable customer base, and charging them enough to offset the costs they bring would make it impossible for them to afford insurance at all. New riders increase overall insurance costs, and will always do so.