Motorcycle Insurance

What standard motorcycle insurance coverage covers

The most basic motorcycle insurance policy in Canada requires third-party liability coverage, accident benefits, uninsured automobile and property damage - direct compensation coverage (DCPD). Third-party liability insurance coverage can help protect you from lawsuits or claims that occur as a result of riding your motorcycle. Accident benefits coverage can be helpful if you get into an accident and get injured. Basic coverage is a necessity. Uninsured automobile coverage provides protection if you get into an accident with an uninsured driver. Direct compensation is a way to receive money after getting into an accident that wasn’t your fault. That’s why our brokers will work with you to determine if you require additional coverage to properly protect yourself. Let’s go more into depth about basic insurance coverage:

Third-party liability coverage

Getting into a motorcycle accident can be deadly, sometimes even fatal, on city streets. Because of this, you’ll need the protection of third-party liability coverage, which works similarly to third-party liability car insurance. It will compensate you if someone files a lawsuit against you due to property damage or a personal injury caused by a collision.

Accident benefits coverage

If you get into a vehicle accident, there are many risks. On top of property damage, you likely have sustained some injuries. Sometimes, even with the medical costs paid for, an accident can result in death. This type of insurance coverage will compensate you and your family if either event occurs.

Uninsured automobile coverage

Getting into a hit-and-run accident is never pleasant. If there weren’t any witnesses, you will likely have to pay for damages out of pocket. The same is true if you are hit by an uninsured driver who stays at the scene. Uninsured automobile coverage will compensate you for property damage and medical expenses when this happens.

Direct compensation - property damage (DCPD)

If you get into an accident and you’re not at fault, direct compensation - property damage (DCPD) will come to the rescue. This type of motorcycle insurance coverage will provide compensation for any damage to your motorcycle caused by the accident. It will not come into effect if the accident was your fault.

Like any vehicle, a motorcycle comes with risks. You can get injured or damage your or someone else’s property while riding one. Basic coverage protects you from having to pay for certain types of damage out of pocket. Despite this, exclusions apply. In other words, to fully protect yourself, you may want to purchase additional coverage. We’ll learn more about the optional types of motorcycle insurance coverage next.

Additional motorcycle insurance coverage options

Having basic motorcycle insurance coverage is required by law. That’s why you should be prepared for anything that comes your way. Here are some common motorcycle insurance coverage options that vary depending on the province you live in:

• Civil liability
• Comprehensive coverage (e.g. hail, fire, theft, vandalism)
• Collision coverage
• Accessory and upgrade
• Loss of use
• Roadside assistance
• Accident forgiveness
• Motorcycle replacement coverage

Civil liability coverage

Civil liability coverage is mandatory in Quebec but isn’t in every province. Essentially, regardless of what type of motorcycle you ride, it will compensate you for damage to your motorcycle caused by other people. Because of its nature, some refer to it as “one-way” coverage.

Comprehensive coverage

Comprehensive coverage protects you against having to pay for damages to your motorcycle if it’s caused by something other than an accident. This can include inclement weather events like hail, fire, theft, and vandalism. If you live in an area with a high crime rate, consider this option.

Collision or upset coverage

Collision or upset coverage will help pay for damages associated with a collision with another vehicle or object on the road. The difference between collision and upset coverage is that you can still receive compensation even if you are the driver at fault.

Accessory and upgrade coverage

Depending on the type of motorcycle you have, customization isn’t uncommon. Any add-ons that don’t come with your motorcycle are known as aftermarket modifications. These can include storage cases, phone mounts, and USB chargers. Having insurance will ensure these are covered if they are damaged or stolen.

Loss of use

An accident can put a motorcycle out of commission for days, sometimes even weeks. When this occurs, and it’s your primary mode of transportation, you might wonder how you’re supposed to get to work. Adding loss of use to your insurance policy can help pay for a rental vehicle while your bike is getting prepared.

Roadside assistance coverage

Although it’s available and might seem like the broadest level of coverage, people often overlook roadside assistance. You likely already have a roadside assistance company you use in emergencies, but the costs can add up if your bike breaks down somewhere remote. Roadside assistance coverage helps pay such costs.

Accident forgiveness coverage

Motorcycle riders should also consider purchasing accident forgiveness coverage. This is especially true for those without a lot of experience. That’s because it prevents your insurance company from raising your rates after your first at-fault accident.

Motorcycle replacement coverage

You can get property damage coverage to pay for repairs. However, this won’t always cover the costs of replacing your motorcycle if it’s written off after an accident. Replacement coverage protects you against paying for these costs out of pocket.

Additional coverage is a great way to stay safe while riding your motorcycle. Knowing you will be covered in a variety of scenarios will give you peace of mind. You will be prepared for anything to happen, but how do you know what type of coverage is right for you? Ask your broker what will be helpful for your needs. You can learn more about this in the next section.

How a broker can help you find motorcycle insurance coverage

There are many things to consider when choosing the right motorcycle insurance coverage. It involves asking the right questions to determine your vehicle usage and ensuring you are protected when it matters the most. In other words, when reviewing coverage options, you should ensure everything you can think of is crossed off your checklist.

Navigating the world of insurance is much easier with the help of a broker. It will save you time and, with their knowledge, allow you to choose a policy faster. Having a professional by your side will instill a newfound sense of confidence that you wouldn’t otherwise have.

You shouldn’t have to navigate the complex world of insurance on your own. Having a BrokerLink broker helps streamline the process of getting motorcycle insurance. It will also help you understand the type(s) of coverage you need to stay safe on the road. However, you still might wonder how insurance companies determine the costs of motorcycle insurance. Let us explain.

Factors that affect the cost of motorcycle insurance coverage

There’s more to the price of premiums than the number of motorcycle insurance coverages you have. Insurance companies use a variety of factors to determine how much your insurance rates will be. However, one thing that each of these aspects has in common is the fact that they’re all based on risk levels. With that said, it’s time to explore how insurance companies determine your rates:

Your choice of motorcycle

Motorcycles are available at various price points, and each one has unique features. With that comes various insurance costs. For example, some sports motorcycles have the potential to go significantly faster than other types. Because of their increased capacity for speed, they are usually more expensive to insure.

Your driving record

Your driving record shows insurance companies your driving history to date. It’s used to measure your responsibility on the road. If your record shows previous accidents or traffic violations, your insurance company will view you as a higher-risk driver, which will increase your motorcycle insurance premiums. How long an accident affects your rates can range from three to six years, depending on your insurance company.

Where you live and park your motorcycle

The security neighbourhood also plays a role in determining your motorcycle insurance premium. Know where you will park your bike before you buy a motorcycle. If the area you live in has high crime rates, there’s a higher chance of your bike being stolen or damaged. Higher claim risks can lead to higher insurance premiums.

Completing a safety course

Taking a motorcycle safety course can improve your comfort on the road and help you learn potentially life-saving skills. As a motorcycle rider, you are less of a risk as a more competent driver. Taking training courses can be beneficial, especially if you are a new rider. They are designed to help you ride a motorcycle safely. Mention any training courses you have taken to your insurance broker to find lower rates.

Age

Insurance companies evaluate statistics such as the number of motor vehicle accidents by age group and use such data to determine different risk factors. If data suggests younger drivers are more likely to get into an accident, their rates are likely to be higher. Similarly, the data may show a higher frequency of accidents for people past a certain age, increasing their rates.

As you can see, your motorcycle insurance costs are determined by a variety of factors. In the end, it all comes down to the amount of risk you present when riding your motorcycle. You can use a broker to find an insurance company that provides the right coverage at an affordable price, but you still might pay a little more as an inexperienced rider. Premiums take time to go down, but there are ways to lower your insurance rates outside of gaining experience on the road.

Ways to save money on your motorcycle insurance

Like auto insurance, motorcycle insurance can add up over time. However, there are ways to reduce your rates. By following these strategies, you can enjoy riding your motorcycle without having to worry about expensive rates. When insurance companies calculate your premiums, they take your risk factor into account, so your goal should be to lower your risk level. You can do this by showing that you are a safe rider and doing a few extra things, which we will get into shortly:

Choose a safe bike

Depending on your motorcycle model, your insurance rates will likely fluctuate. Sport bikes are more powerful and are considered more risky because of their higher speeds. Sometimes, you won’t be able to get insurance for these bikes if you’re a new rider because you will be viewed as too much of a risk. Call around to different insurance companies to confirm your eligibility.

The engine capacity of your motorcycle also comes into play. It’s measured in cubic centimetres (CC), and if your bike has a CC higher than 650, your insurance rates will likely skyrocket. That’s why you should opt for a motorcycle with a lower engine capacity when you first start riding. Otherwise, be prepared to pay the price.

Take a motorcycle training course and join a motorcycle riding club

It doesn’t matter how long you have been riding for. Taking a motorcycle training course makes a difference in your insurance rates, whether you’re a new or experienced rider. Similar to taking a defensive driving course or learning to drive, a certificate from an accredited school can lower your motorcycle insurance premiums.

A motorcycle riding club also shows your insurance company that you are responsible. In some cases, you may be eligible for discounts if you’re an alumnus or a member of certain professional organizations. Your insurance broker can let you know if you’re eligible for any discounts for being part of such organizations.

Install an anti-theft device and keep your motorcycle somewhere safe

A motorcycle is often called a recreational vehicle. However, some people use it as a daily means of transportation. That’s why increased theft protection is a good idea. Some motorcycles are much more likely to be stolen, and sometimes, they are taken more frequently than cars. Adding an anti-theft device to your bike will show your insurer that you are taking steps to protect it, which can lead to lower rates.

As mentioned earlier, where you park your motorcycle can also affect your insurance rates. Sometimes, parking outside in the driveway or on the street is your only option. If you live in an area with high crime rates, your bike is more likely to get stolen. However, if you store your motorcycle in a private garage while it’s not in use, it decreases these chances and can lower your insurance rates.

Get a higher deductible or have less coverage

Your deductible is the amount of money you have to pay before your insurance company pays you out for a motorcycle insurance claim. In other words, you have to pay a certain amount out of pocket before you receive insurance coverage following an incident. However, be aware of the risk of having to pay more upfront if something does happen.

You could decrease the amount of coverage you have. Some types of motorcycle insurance coverage are optional, and by taking these off your policy, you can save a bit of money. However, you have to weigh the pros and cons of having less coverage before making this decision. For example, opting out can cause you to lose money if your motorcycle is stolen or hit by falling objects.

Bundle your insurance policies

The majority of insurance companies offer discounts for bundling home and auto insurance policies. You also probably know they offer discounts if you opt for a multi-vehicle policy. This means if you drive a car or more than one motorcycle, you can save money by putting them on the same policy.

Besides bundling your auto insurance, you can also bundle your home insurance policy. When you bundle your motorcycle, home and auto insurance policies together, you can get even greater discounts. Ask your broker how you can save today.

Knowing you are covered if you get into an accident is reassuring. However, finding a company that will insure you for a decent price can be a challenge. Having a broker to shop around for you can reduce some of your stress. Either way, you will have to get mandatory motorcycle insurance coverage. If you don’t, you risk getting fined or paying higher premiums in the future. Get insurance shortly after you purchase your bike to ease your mind.

Get a motorcycle insurance quote from BrokerLink

When you own a motorcycle, you can never be too cautious. That’s why you should consider opting for full coverage, depending on where you live. Touring bikes and other types of motorcycles come with a number of risks. These include injury and the possibility of damaging your own or someone else’s property. That’s where coverage similar to liability car insurance coverage comes in handy.

Want to learn more about motorcycle insurance coverage? Let BrokerLink be your resource to find motorcycle insurance coverage that offers the protection you need for the best value. We can help you out by providing a free online quote. It doesn’t matter whether you need year-round or seasonal motorcycle insurance. Give our brokers a call today, and we’ll find an insurance policy that suits your needs and budget.

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Motorcycle insurance FAQs

What is the most common motorcycle injury?

There are a couple of risks you take when riding a motorcycle, including injuries, but some are more common than others. These include road rash, which occurs when the rider’s bare skin strikes against the pavement, broken bones, fractures, and head injuries. Wearing safety gear is paramount and increases your chances of surviving an accident. Enhanced protection is the best way to avoid bodily injury.

What kind of motorcycle insurance do I need?

In Canada, it’s illegal to drive without insurance. Third-party liability, accident benefits, uninsured automobile and direct compensation - property damage are all mandatory. It’s important to note that different provinces require different types of coverage. Speak with your insurance broker to determine the coverage you need before hitting the road.

How can I save on motorcycle insurance?

If you maintain a good driving record, you are more likely to get a good rate on your motorcycle insurance. Several discounts are available, including bundling your motorcycle insurance and car insurance policy. There are many other ways to save money on insurance, which you can find out from a broker.

How much is motorcycle insurance?

The answer to the question, “How much is motorcycle insurance? ” isn’t consistent. The costs of motorcycle insurance vary depending on where you live and your driving history. You can get an idea of the cost by calling an insurance broker for a quote.

Can you own a motorcycle without insurance?

If you intend to take your motorcycle on the road, you need to purchase and maintain a valid insurance policy. Driving without insurance is unsafe and illegal. You can get a quote by calling an insurance broker! From there, you can put on your jacket and helmet and hit the road in a matter of minutes.

Can I ride a motorcycle with just my driver’s licence?

In Canada, you need a separate motorcycle licence to drive a motorcycle. This is not the same as a regular driver’s licence. Insurance ensures your safety, that of your passengers, and other drivers on the road.

If you have any questions, contact one of our local branches.