Bikes, especially the high-end ones can be expensive and insurance rates can be even more so. However, before taking the plunge to get the most affordable bike insurance, it is necessary to understand how a typical insurance company will decide the rate applicable for a candidate. This knowledge will help to attain the most adequate and affordable motorcycle coverage.
How Insurance Companies Rate Candidates
The flashier the bike and newer the model, the more expensive the insurance is going to be. If the bike in question is an older and basic model, then the rates are bound to be less. The age of the person also plays a part in determining insurance rates. The concept is similar to auto insurance wherein if the person is older, the insurance rates are cheaper; if the candidate has only recently learnt to ride a bike, the insurance rates will be higher. Many times, the kind of rates received from an insurance company will also depend on the place of residence. If the person stays in a high accident or high crime zone, the insurance rates will be much higher compared to those residing in safer areas.
Driving Record and Bike Security
Driving records play an important role towards the rates that motorcycle riders are likely to acquire. For those who are inexperienced, even one accident will have a profound impact in increasing the insurance rates. The better the driving history is, the higher the chances of getting cheap bike insurance. Insurance companies tend to hike up rates once they perceive possible dangers to the bike. As such, placing an alarm on the bike or storing it in a garage overnight will greatly help to discount the rate of insurance.
Other Considerations
Depending on the kind of job you have, the insurance rates will differ accordingly. If you work at a construction site, then the risk of damages to your bike is higher and hence insurance rates too are likely to be more expensive. Even in the same locality, insurance rates can show a vast disparity. Hence, it is best to make calls to insurance companies and try to get as many rates as possible. This may be a tedious process but it is one which will eventually lead to a more informed decision and a more preferable result.
Over Insuring and Mileage
The market value of the bike in question needs to be carefully evaluated. Variables such as age and small damage will bring down the value of the bike and as a result, there is no point in insuring it at a higher documented value. This is a common mistake and it is important to note that over insuring the bike will result in a higher premium. Mileage is also another area where people waste money on insurance. If the bike will only be ridden occasionally, there is no need to pay excess for mileage that will not be covered.
While there are several insurance companies offering seemingly competitive rates, every person interested in obtaining cheap bike insurance should do their own research thoroughly before arriving at a decision. Since all insurance policies involve long-term premium payments, it is important to carefully consider all the options before making a decision.
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