Advice
How is bike insurance calculated?
One of the biggest tasks for motorbike owners is trying to find a good deal on their insurance. The options can feel endless, and it can be hard to tell if you are getting a decent price. We are here to help you along the way.
Words by: Auto Trader
Additional words by: Tom Roberts
Last updated on 2 May 2024 | 0 min read
When looking at a quote from an insurer, it helps to know how they calculate their prices.
Insurance quotes are based on a range of factors, but these tend to fall into one of two categories: 1) How likely the rider is to make a claim. 2) And, how much the bike would cost to replace. While you cannot control factors like your age and your location, you can control other things such as the type of bike you choose and how often you use it. Here are some of the options an insurer will consider.
Insurance quotes are based on a range of factors, but these tend to fall into one of two categories: 1) How likely the rider is to make a claim. 2) And, how much the bike would cost to replace. While you cannot control factors like your age and your location, you can control other things such as the type of bike you choose and how often you use it. Here are some of the options an insurer will consider.
Age
Younger riders are statistically more likely to have an accident. Therefore, if you are under 25 you can expect to pay more for your insurance.
Luckily, some companies specialise in insuring younger riders. Others may offer a discount if you take an accredited motorcycle safety course.
Luckily, some companies specialise in insuring younger riders. Others may offer a discount if you take an accredited motorcycle safety course.
Location
Insurers will want to know where you live, which could affect your premiums.
They will look at the crime rates in your area, to gauge the likelihood of your bike being stolen. Insuring a bike in the city can often be more expensive than insuring a bike in the countryside. This is because the increased traffic in cities could make an accident more likely.
They will look at the crime rates in your area, to gauge the likelihood of your bike being stolen. Insuring a bike in the city can often be more expensive than insuring a bike in the countryside. This is because the increased traffic in cities could make an accident more likely.
Security
As well as the general safety of your area, insurers will also want to know about your plans for storing the bike.
If you have a garage or a secure driveway, your premiums are likely to be lower than if you keep the bike on the street. Insurance companies may ask if you have fitted any additional security measures like a ground anchor or an immobiliser. If you have installed a security device, be sure to tell your insurer to maximise your chance of a discount.
If you have a garage or a secure driveway, your premiums are likely to be lower than if you keep the bike on the street. Insurance companies may ask if you have fitted any additional security measures like a ground anchor or an immobiliser. If you have installed a security device, be sure to tell your insurer to maximise your chance of a discount.
Lifestyle
Your lifestyle is a key factor in the cost of your insurance.
Certain jobs are considered 'high risk' for accidents by insurers. This is usually because they involve more time spent on the road. For example, if you are using your bike to work as a delivery driver, insurers are likely to charge you more. The amount that you plan to use your bike is also important. Using your bike every day for commuting is likely to increase your insurance premiums. If you want to save money on your bike insurance, consider using a car, or public transport for commuting.
Certain jobs are considered 'high risk' for accidents by insurers. This is usually because they involve more time spent on the road. For example, if you are using your bike to work as a delivery driver, insurers are likely to charge you more. The amount that you plan to use your bike is also important. Using your bike every day for commuting is likely to increase your insurance premiums. If you want to save money on your bike insurance, consider using a car, or public transport for commuting.
Previous insurance record
Insurers will look at your insurance history to work out how likely you are to make a claim. If you have made several claims in the past, you could be considered a higher risk and be charged more.
Most insurers will offer a no-claims discount. This will be based on the number of years you have gone without making a claim.
Most insurers will offer a no-claims discount. This will be based on the number of years you have gone without making a claim.
Make and model of bike
More powerful bikes are often considered more dangerous, so are more expensive to insure.
An effective way to reduce the cost of your insurance is to choose a bike with a smaller engine. Cheaper bikes are also cheaper to insure as they cost less to replace. Insurance companies will usually charge more to insure rare or imported bikes, which are difficult to replace. The same goes for classic bikes containing parts that are no longer in production.
An effective way to reduce the cost of your insurance is to choose a bike with a smaller engine. Cheaper bikes are also cheaper to insure as they cost less to replace. Insurance companies will usually charge more to insure rare or imported bikes, which are difficult to replace. The same goes for classic bikes containing parts that are no longer in production.
Modifications
Insurers will ask if you have made any modifications to your bike.
Modifications usually result in higher premiums. This is because they make a bike harder to replace. They can also often make bikes more powerful, and therefore more dangerous. You should never lie to your insurance company about modifications, this is fraudulent.
Modifications usually result in higher premiums. This is because they make a bike harder to replace. They can also often make bikes more powerful, and therefore more dangerous. You should never lie to your insurance company about modifications, this is fraudulent.
Your voluntary excess
Insurers will ask if you wish to increase your voluntary excess.
This is the amount you are willing to pay towards a claim. Setting a higher voluntary excess will reduce your premiums but will cost you more in the event of a claim. So, there you have it, a rough guide to everything you need know when it comes to bike insurance. It is important to remember insurance companies are sizing up two main things: 1) How likely you are to need a payout 2) What it would cost to replace your bike. We hope this guide has given you the tools you need to get your next insurance quote down.
This is the amount you are willing to pay towards a claim. Setting a higher voluntary excess will reduce your premiums but will cost you more in the event of a claim. So, there you have it, a rough guide to everything you need know when it comes to bike insurance. It is important to remember insurance companies are sizing up two main things: 1) How likely you are to need a payout 2) What it would cost to replace your bike. We hope this guide has given you the tools you need to get your next insurance quote down.