Thankfully the cost of motorbike insurance hasn’t been rising as rapidly as car cover over the past few years. But that doesn’t mean that riders won’t want to keep a lid on their premiums.
If you understand how insurers set policy costs, you can take action to ensure your cost of cover is as low as possible.
Generally speaking, the amount charged by an insurance company in premiums is a reflection of how likely any particular motorcyclist is to make a claim, as well as how expensive that claim is likely to be.
Some of the factors involved in these calculations you can’t do much about, such as your age and where you live. But there are others – say, the type of bike you ride, and how much you use it – that you do have some sway over.
Bear in mind that different insurers treat these factors in different ways: this is why it’s always a good idea to shop around and get quotes from as wide a range of providers as possible.
For example, some insurers may penalise you more than others for your age, or for having made claims in the last few years.
Your age
From you application form, an insurer can’t tell whether you are a cautious or reckless motorcyclist (unless you’ve made lots of claims before or have points on your licence), so it has to use statistical data from across all its customer base to work out what kind of a risk someone like you typically poses.
One of the most significant factors in this calculation is age: the statistics show that young riders, for example, are more likely to be involved in accidents and to make claims than other age groups. This is why those aged between 17 and 25 generally face the highest premiums.
Your gender
If insurers believe that one sex is more likely to be involved in accidents, or make claims, than the other, that group will face higher premiums – this is the especially the case with male car drivers at the moment, for example.
From December 2012, insurers will no longer be able to use gender to set rates, but this is not expected to have a significant impact on the motorcycle insurance market due to the fact that male riders outnumber female bikers considerably.
However, like their car-owning counterparts, female motorbikers are thought by many insurers to present a lower risk, which means their premiums do tend to be lower.
The bike you ride
The make and model of motorcycle you are insuring has a large bearing on your insurance premiums.
- Value: The more expensive it is, the more your bike would cost to replace if stolen or written off in an accident – so the higher the premiums. A classic bike, for example, may also cost more to repair, particularly if it is rare and the cost of spare parts is higher than for other makes and models.If, on the other hand, you own a beaten-up old scooter, don’t assume that just because your own bike isn’t worth much, it will be cheap to cover: remember, insurance is not just for damage to your own ride, it is also designed to protect other road users against any accidents you could cause.
- Power: The more powerful your bike is, the more likely it is to be involved in accidents – and the more costly those accidents are likely to be. That’s why bikes with larger engines cost more to insure. If you modify your motorbike to make it more powerful, you should inform your insurer: it will probably increase your premiums, but if you don’t tell them, your cover could be rendered invalid when you come to make a claim.
- Desirability: If you own a particularly desirable bike, your insurer may consider you at greater risk of theft and increase your premiums accordingly.
The security measures you take
The harder your motorcycle is to steal, the lower your premiums. If you can keep the bike in a locked garage at night, this can help keep costs down, as can anti-theft measures such as ground anchors, immobilisers and bike locks. Make sure any security devices you buy are recognised by the insurer you’re planning to use: otherwise you may not get a discount.
Where you live
Your postcode also has a bearing on the cost of insurance: if you live in a built-up area where the risk of accidents is greater, you’ll pay more – as you will if you live somewhere that has high recorded levels of bike theft.
How you use your bike
If you use your ride for commuting as well as for social reasons, you are likely to pay more for cover as you’ll be riding more when the roads are busy. Your annual mileage also has a bearing: after all, the more time you spend on the road, the more likely you are to be involved in an accident.
Your riding record and no-claims bonus
One of the most significant factors in calculating your cost of cover is your claims history, and whether you have any endorsements on your licence.
Your insurer will ask for details of any claims in the past five years: you’ll have to state what the value of the claims were, and whether you were at fault. (Even if you weren’t at fault, the claim will still probably push up your premiums to some extent.)
If you haven’t made any claims for a year or more, you should have some form of no-claims bonus.
Most insurers will accept up to five years’ worth of no-claims, and this can result in discounts of up to 70 per cent with some providers.
Your excess
The higher the voluntary excess you agree to, the less your insurance will cost. For example, if you choose a voluntary excess of zero, your insurer knows that for every claim you make, it will have to pay the whole amount (less any compulsory excess).
But if you set your voluntary excess, your insurer knows that its potential payouts will be reduced, and also that you’ll be less likely to claim – any low-value claims will be uneconomical from your point of view.
The type of cover you buy
Comprehensive insurance is normally more expensive than third-party or third-party, fire and theft, because your provider will potentially have to pay out in a greater range of circumstances.
With third-party cover, your insurer knows it will only be liable for damage caused by you to other road users – and not for damage caused to your own bike or injuries you yourself sustain.
Who else is insured to ride your bike
The named riders on your insurance policy can cause premiums to rise and fall. If you’re an experienced biker, adding a young rider – such as your son who’s just passed his test – to your policy can cause the cost to rocket. Conversely, if a young main rider adds a more experienced relative to their policy, it can reduce the costs. Most policies run for a 12 month period before you are given the option to renew or cancel and chnage to a different insurer.
By Chris Torney
