3 Important Facts About Motorcycle Insurance Rates

Motorcycle insurance rates are determined by the type of motorcycle that you own and how you use the vehicle. Motorcycle insurance is typically required in every jurisdiction that you own a motorcycle. This requirement protects the interests of the motoring public in the event that an accident was to occur result in damage or injury.

There are few important facts or considerations that must be taken into account when buying motorcycle insurance. These facts influence the rates that you pay, which is the cost of your motorcycle insurance policy. Understanding these facts will help you choose the best coverage that will meet your obligations and lower your out-of-pocket cost.

Type of Coverage Needed

In most cases, liability insurance is what you need to protect yourself and meet your insurance buying obligation. Liability insurance pays a benefit related to your liability associated with an accident that your may be involved. Although liability coverage will not pay to get your bike fixed, it’s a low cost option for a motorcycle owner that has to buy motorcycle insurance.

In lowering your motorcycle insurance rates however, it is important to protect yourself against uninsured motorists by providing an additional coverage for these types of motorists. Also, you should carry medical liability in the event that an injury is caused to someone who is riding on the motorcycle with you that is involved in an accident. This will reduce your liabilities and the additional cost to your rate will be worth it if a loss were to occur.

Mode of Premium Payment

The more frequently you pay your premiums, the more expensive your coverage is. Premiums are typically paid on a modal basis, which is monthly, quarterly, semi-annual and annual. Paying your motorcycle premiums on an annual basis is more cost effective for an insurance company than receiving those premiums quarterly or semi-annual.

The mode with the lowest frequency is preferred by a motorcycle insurance company over those that are more frequent. The exception to this rule regarding your rates are premiums paid monthly that can be debited from a checking account or debit account. In this case, the insurance company knows where to get their money and will result in a lower modal charge than semi-annual or quarterly premium charges.

No-Fault

Motorcycle owners that reside in a no-fault state are excluded from insurance coverage over those motorists who do not live in a no-fault state. Knowing this requirement will definitely have an influence on your rates. Your insurance agent should know what the minimum coverage requirements are for your state and be able to advise you on the best way to keep your rates down. If you choose to obtain motorcycle insurance on your own, be sure to request information about coverage minimums or ask questions.

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