How to lower your motorcycle insurance premium
There are several factors that will change how much your motorcycle insurance provider charges for your policy premium, including the following…
Amount covered: The “sum insured” amount that your motorcycle is covered for makes up a big part of the price of your insurance. Put simply, if your bike is worth more, your insurance will cost more because the bike would cost more to repair or replace.
Address: The address where your motorcycle is kept overnight will affect your premium because different locations represent a different risk of theft.
Age of rider: Under-25s often complain that they pay more for motorcycle insurance, but the simple fact is that the younger you are, the higher the statistical risk of an accident. In 2014 in Queensland, 78% of fatal road accidents involved people aged under 30 years old.
Experience of rider: If you have held your full licence for less than 2 years, you will pay a higher premium and a higher excess as well.
Claims history: The no-claims discount is slowly being phased out in Australia, to be replaced by loyalty discounts based on how long you’ve been with one insurer and how many policies you have with that insurer. But a policy history that includes multiple accidental damage or storm damage claims will have a higher premium than a history with few or no claims.
Motorcycle year, make and model: The type of motorcycle, how old it is, how high-power it is, and how much it cost, all affects how much it costs to insure. For example, a scooter is obviously going to be cheaper to repair or replace than a cruiser, so it would have a cheaper insurance premium.
Modifications: The more modifications your bike has, the more expensive it would be to repair or replace, so the higher the premium. If you have non-manufacturer modifications that make your motorcycle no longer street legal or roadworthy, you will not be able to insure it at all beyond CTP.
How often you ride: Many insurers assess premiums based on how regularly you ride or how many kilometres you’ve clock on your bike every year, because less riding means less risk. So you can get cheaper insurance if you’re just a weekend warrior or you only ride to the train station every day.
Finance: If your motorcycle is financed, you will pay a higher premium. Finance lenders often require that you protect their investment with a comprehensive insurance policy, which is naturally more expensive. They also often require that your policy has a low excess, which makes your premium more expensive.
Rider training course: Successfully completing a rider training course can drive your premium lower, especially if you choose a course recommended by your insurance provider.
Pay by the month: Out of the insurance providers Canstar rated this year, only one provider still charges a higher premium if you choose to pay in monthly instalments rather than once annually. Thanks to the digital age, most institutions now recognise that there are no great administrative costs involved in receiving monthly payments online.
Optional benefits: If you choose to add optional extras cover to your comprehensive insurance policy, it will become more expensive. Common examples are optional cover for: personal items or apparel, replacement of your locks and keys, or a trailer attached to your bike.
Loyalty: Loyalty schemes are slowly replacing the no-claims discount in Australia, so you can get a discount on your premium for sticking with the same insurer for multiple years, and for having multiple insurance policies with them. Just make sure that you regularly assess each policy and make sure that your provider is still offering you the best value cover each year.
One final note…
Don’t choose your insurance policy solely because of the price. You need to make sure you’re covered for what you need. Always compare your options on the Canstar website, and read the fine print in the product disclosure statement (PDS) before signing up.