Motorcycles are inherently more dangerous than cars. The motorcycle driver doesn’t have a seatbelt and there’s nothing protecting him in case of an accident. The risks of driving a motorcycle, however, don’t automatically mean that motorcycle insurance costs more than auto insurance. There are a lot of factors that insurance companies consider before giving a final price.
Type of Motorcycle or Car
A rule of thumb when choosing any type of insurance is the nicer the purchase, the more expensive the insurance. All insurance works this way, from home to boat insurance. Motorcycle insurance, however, tends to place even more of a price tag on high-cost bikes. Insuring a sports car versus a traditional sedan could cost you an additional $50 per month or more, but insuring a speedy sports bike could end up costing you five times more than insuring a smaller bike. It's all about the risk factor. Choosing a sports bike over a smaller, less powerful bike is more dangerous than choosing a sports car over a sedan.
Cars are notorious for various applicable discounts, such as airbags, anti-lock brakes, student drivers and multiple car discounts. While some discounts are also applicable for motorcycle, such as anti-lock brakes, motorcycles traditionally do not qualify for the same benefits as cars. Motorcycles can qualify for discounts from most insurance providers by successfully completing the Motorcycle Safety Foundation's training courses. Motorcycle drivers can also qualify for discounts by belonging to a major motorcycle association or group.
No-fault insurance means that the insurance company will cover the losses you incur from an accident regardless of who’s at fault. Many states have passed a law that makes it mandatory for insurance companies to offer no-fault policies for cars. Motorcycles, however, are almost always excluded from a no-fault policy, because motorcycle crashes often cause serious injuries or are fatal. Drivers who opt for a full-coverage policy bypass the no-fault policy, because most full-coverage policies stipulate that the driver and driver’s family is covered in case of injury or death.
Like auto insurance, motorcycle insurance rates vary from one end of the spectrum to the other. Motorcycles are sometimes cheaper to insure than cars and vice versa. The insurance company will take into account the age of the motorcycle driver, where the driver lives and his financial history in addition to the other factors. A motorcyclist should expect to pay less for his motorcycle insurance than comparable car insurance if the bike is not high-end, his driving record is clean and he has a strong financial history.