Planning to buy a motorcycle or already have one? When it comes to motorcycle insurance, there’s a wealth of misinformation as diverse as the bikes themselves. Misinformation can either stop you from purchasing your dream bike or leave you underinsured when it matters most. Whether you’re a new rider or have years of experience, this guide will help debunk the most common myths so you can make informed decisions, ensuring you’re adequately protected on the road.
Myth: Buy a motorcycle first so you can practice for the rider training course ahead of time.
Reality: It’s recommended to take the rider training course before purchasing any motorcycle. Much like you wouldn’t “practice” rock climbing or scuba diving on your own before taking lessons, the motorcycle course is designed for absolute beginners. No practice is needed ahead of the course; the course itself is the practice. The school provides small motorcycles to learn and practice on in an enclosed lot before you try your own motorcycle on active roads. Professional instructors guide you through safety techniques and riding drills over two days to prepare you for real roads and actual traffic. Moreover, completing a training course does give you a substantial discount on your insurance. It’s also a really fun experience.
Myth: Cruisers are cheaper on insurance than sport bikes.
Reality: This is false, though this myth has more to do with the definition of “sport bikes” than it does cruisers. The truth is that engine size is about 80% of the insurance factor for a first-year rider. Simply put, typically, smaller is cheaper and bigger is more expensive. Proper cruisers typically have very large engines, which factor into the rate. For insurance purposes, there are really only two categories: motorcycles and restricted motorcycles (aka “blacklisted”). Most sport bikes are actually not restricted, and there is no such thing as a restricted bike under 500cc, regardless of the style. If you start on a smaller motorcycle, you avoid this issue altogether, will have a lower insurance rate, and will become a better rider sooner than on a bigger bike.
Myth: Older motorcycles are cheaper to insure than newer models and better to start on.
Reality: This is generally not true. The largest portion of the insurance coverage is the liability and accident benefits, which are essentially linked to the engine size. Again, typically, smaller is cheaper and bigger is more expensive. The year and value of a motorcycle are only small factors on the rate. The thought behind this is you can get hurt the same way on a brand-new motorcycle as you can on a 20-year-old motorcycle. If anything, newer models have more safety features than older bikes. Comparing apples-to-apples coverage, you would see a lower rate on a 2024 400cc motorcycle than a 1984 900cc motorcycle, for example. When deciding on an older bike, maintenance costs and safety should also be considered.
Myth: Save money by pausing your insurance in the winter. You are not riding anyway.
Reality: Motorcycle insurance in Canada is seasonally rated. Whether you start your policy in January or June, you’re covered for a full 12 months, though you are only really paying for eight of those months (March 1 to October 31). Each month has a different usage weight. For example, July alone represents 20% of the entire annual premium, whereas October only represents 5% of the total. Though the coverage is fully active year-round, the four “winter months” are included as free bonus months. You can still ride on a nice day, and incidents of theft still happen when it is colder. Cancelling the insurance in the winter doesn’t help you save money, as there is no charge for those months in the first place. The confusion often arises when making monthly payments on the insurance. “What do you mean no charge? I just made a payment in December.” In reality, this is the annual premium split into a payment plan. For example, that month (December) is just one of 12 payments; each payment does not represent the month you are in. Unless you have sold the motorcycle, leave the insurance on all year round.
Myth: Marital status and gender affect your insurance rates.
Reality: While all insurance carriers calculate their risks and rates differently, some companies factor in marital status, for example, auto insurance. However, this is not the case for motorcycle policies. Cars are considered primary forms of transportation, and there are passengers to consider, such as commuting distance, higher driving frequency, etc. Motorcycles, on the other hand, are classified as pleasure vehicles (as are ATVs, snowmobiles, boats). Gender and marital status do not factor into the motorcycle rate.
Myth: Motorcycles with an “R” in the name have higher insurance rates.
Reality: Every insurance company handles this differently. Companies with good motorcycle insurance programs should know the difference between a sport bike and a blacklisted /restricted supersport. Unfortunately, there are insurance companies that cannot make that distinction. A sporty bike designed for real-world streets is very different than a full-on supersport designed to excel on a race track. Even though “RR” typically refers to “Race Ready” or “Race Replica,” the devil is in the details. For example, a Ducati Panigale V2 has no “R” in the name but is a restricted supersport (high rates for riders with less than 3-5 years with their moto license). On the other hand, a Kawasaki Ninja ZX-4RR is not restricted across the board due to the smaller engine size, even though it has the “RR” in the name. Always get a confirmed insurance quote before you buy a motorcycle.
Myth: Younger riders have higher accident and claims statistics than older riders.
Reality: Though insurance rates are higher for younger riders, actual motorcycle accidents and claims numbers from underwriters clearly show there is barely a difference. If anything, the statistics show younger riders are less likely to get into a serious crash or make a large accident claim. This is due to a few factors, including faster reaction time, more recent rider training, and new riders primarily being on smaller motorcycles. Many older riders come back to motorcycling after 20+ years of being off a bike. Many do not take a refresher riding course before they get back on the road, tend to come back on very large motorcycles, and have slower reaction times as they get older. As many mature riders still have their full motorcycle license, they can go on highways, ride at night, and even carry a passenger. Traffic conditions have made the roads more dangerous, and average highway speeds are higher than 20 years ago. Younger riders, on the other hand, are more likely to start with a proper training course on smaller machines, stay on regular roads, only ride during the day and practice riding solo before ever carrying a passenger. The numbers show being older does not automatically make you a safer rider.
Myth: Insurance is already expensive, so go with the lowest coverage option.
Reality: Riders know that their motorcycle is not just a random vehicle. It’s your baby, your pride and joy. Ask yourself: Would you be fine with having to buy another motorcycle if your bike got stolen or wrecked to save $85 to $300 on insurance? The rule of thumb is if your motorcycle is worth over $3000, definitely include comprehensive coverage at least (fire, theft, vandalism, coverage for weather damage, etc.). Adding collision/upset coverage is a good idea as that covers damage to the motorcycle that you cannot blame on another person or clearly prove who caused it (e.g., bike hit while parked, no witnesses). On the rate side the bulk of the insurance premium is the part that covers the rider and all sides involved in an accident (medical, rehab, legal costs, accident benefits). The portion that covers the motorcycle itself typically represents only 15% to 30% of the total insurance premium. Compare, for example, a rate of $1000/year for proper coverage against $850/year for basic insurance, which only covers the rider but does not cover anything on the motorcycle itself. It is essential to protect your ride.
Myth: Commuting to work will increase your motorcycle insurance.
Reality: Insurance companies are familiar with quoting auto insurance. Again, cars are classified as primary forms of transportation, whereas motorcycles are not. An insurance agent or broker has to ask and factor in annual kilometers and commuting distance for a car. Technically, motorcycles have unlimited annual kilometers and cover you Canada-wide and even up to six months in a row in the United States. Rates should not be affected by riding your bike to work. Unfortunately, quoting systems were designed for autos, and the fields for annual kilometers and commuting status cannot be left blank. Motorcycle specialists know how to enter a default of 5000 annual kilometers, rate for “pleasure” riding, and leave the commuting status to “no” to get an accurate rate. General insurance companies will likely ask the prospective client about commuting and distance and will enter the answers provided, which in many cases unknowingly throws the quote and final rate off. The only time commuting on a motorcycle affects the rate is if the vehicle is being used for commercial purposes (delivery service, as an advertising/promo piece, rented for hire), but simply riding to work is not an issue at all.
Ronn Calderon, a motorcycle insurance specialist with NFP, an Aon Company, is a seasoned 18-year rider and serves the coverage needs of Canadian motorcycle enthusiasts. Ronn can be reached by email at ronn.calderon@nfp.ca
<
Discussion about this post