Why is Motorcycle Insurance So Expensive?

The role of insurance is to protect the insured from insured perils. Given that some perils are riskier to insure not forgetting high compensation amounts, the cost of insurance differs. In auto insurance, the cost of motorcycle insurance is significantly expensive in Ontario. Why so? The number of risks exposed to motorcycles is higher. In Ontario, insurance rates are expensive, especially for new and younger drivers. For instance, you can check out quotes for car insurance in Kitchener, Ontario. But even with more riding experience, the rates are still expensive but can be lowered. While wearing proper gear and a helmet can provide some protection, safety gear can become less effective especially at higher speeds or depending on the type of accident. 

Let’s see why motorcycle insurance is expensive in Ontario 

1. Motorcycles offer limited body protection to riders

Whether you protect yourself with the required gears and even helmet, you are still exposed more to injuries, even minor ones. For instance, a collision involving a motorcycle and a vehicle can be fatal for the rider and cause zero harm to the vehicle’s driver. 

2. High speed

Most motorcycles accelerate quickly. In case of an accident, these end up causing more significant injuries (and higher likeliness of fatality) compared to speeding motor vehicles involved in an accident

3. High rates of accidents

Ontario motorcyclists are 3 times more likely to be injured in a collision, 10 times more likely to sustain fatal injuries and 5 times more likely to succumb from accidents compared to other automobile drivers.  For comparison, you can check out what the rates are for car insurance in Yukon or car insurance in Calgary, Alberta. 

What are the factors that determine the cost of motorcycle insurance in Ontario? 

• Age and gender- Insurance companies may use age and gender as a caveat for setting motorcycle insurance premiums. For instance, older riders or women are assumed to be more responsible than young or male riders. 
• Location- Persons located in urban areas pay up more than those in remote areas. With urban areas comes lots of cars and human activity, increasing the chances of accidents from occurring. Also, if you live in a place with a dangerous landscape, then you might remit more premiums. Similarly, high cases of theft can often translate to higher premiums for comprehensive coverage on motorcycle policies.
• Type of motorcycle- What is the make, model and age of your motorcycle? You may not have given this a thought while making a purchase. For instance, persons who own a scooter will pay fewer insurance premiums compared to those who own expensive motorcycles with large engines. 
• Coverage- Your motorcycle insurance coverage ultimately affects the cost of your insurance. In Ontario, third-party liability, statutory accident benefits, uninsured auto-mobile and direct compensation for property damage coverage are mandatory. You could opt for optional insurance coverage such as increased accident benefits, comprehensive, higher third-party coverage and specified perils coverage. All these cause a variance in your motorcycle insurance cost. However, keep in mind that some coverage would be considered to be part of mandatory insurance in Canada. Which is why it would also be handy to have digital proof on insurance.  
• Driving record- How many accident claims have you made in the past? If you have a history of many claims especially involving violations and at-fault accidents, then you are high risk to insure. To safeguard themselves, your insurer will charge you more. And if your record is significantly poor, then no traditional insurer will be willing to sell a policy. 
• Your commute- How much time do you spend on the road with your motorcycle? If you only use your motorcycle a few days monthly, then your rates will not be at par with a person who uses the motorcycle daily. 
• Insurance company- Motorcycle insurance is expensive in Ontario. But that does not mean that all insurers charge the same rates. As such, you could find a significant variance in the cost of motorcycle insurance among different insurers. 
• Deductible amount- Choosing a higher deductible will lower your premium rates. However, it may not be very wise especially if you are at more risk of causing or being involved in an accident.

What does the extra insurance cost cater to?

1. Income replacement

Injuries sustained from a severe motorcycle accident can be fatal, incapacitating the ability of a rider to work. The income replacement benefit replaces the rider’s income if they are incapacitated. In Ontario, the costs start at $400 weekly to $20,800 annually. 

2. Medical, attendant care and rehabilitation benefits

These are expenses that are not covered by the Ontario Health Insurance Plan. They are mandatory and require either $65,000 for non-catastrophic injuries and $1M for catastrophic injuries. These benefits provide coverage for counseling, medical transportation, prescription drugs, chiropractic care and physiotherapy. 

3. Other insurance benefits

These are mandatory benefits including home maintenance expenses, caregiver and death or funeral benefits. 

How can you lower your motorcycle insurance rates in Ontario? 

• Complete a rider-training course- While this may cost you approximately $250- $500, you not only become a safe rider but also help you save insurance money in the long run. Also, some insurance companies may refuse to insure you if you have not completed one of the rider training courses. 
• Follow the rules- Careless accidents, speeding tickets and other road violations will only hike up your insurance fees. And no insurance company wants to insure a high-risk person. Remember, riding safely not only reduces the cost of your motorcycle insurance but also reduces the chances of being involved in accidents, some of which can be fatal. 
• Match your motorcycle to your needs- If you only need a motorcycle to run errands or go to school, then getting a high-end one may not be wise after all. Expensive motorcycles are costly to insure. Motorbikes with high horsepower are more dangerous hence fetch higher insurance rates. Also, some insurance companies don’t even provide coverage for supersport bikes. 
• Bundle your insurance policies- Insurance bundling is one clever way to reduce the cost of your policies since they attract high discounts. However, always ensure that the price matches the coverage provided. 
• A higher deductible- A higher deductible means remitting lower premiums. However, in the event of an accident, you will pay more out of pocket. If you are high risk, opting for a higher deductible may not be a wise decision. 
• Do not cancel your insurance- Whether you are not planning to use your motorcycle for a few months, or even during winter, do not cancel your insurance just yet. This will cost you more if you need new coverage later. Only cancel your insurance when quitting riding. 
• Shop around for quotes- While motorcycle insurance rates in Ontario are incredibly high, they vary with different insurance providers. As such, always shop around, compare the policy rates and the insurance provisions.

Endnote 

With the high rates of motorcycle accidents, insurance will safeguard you in case an accident occurs. Always ensure that you work with a reputable insurance company. Remember to stay safe and follow the rules, a little bit more.  Check also this article on how to get cheap motorbike insurance in Canada.