Compulsory motorcycle insurance in Newfoundland
The fact is that motorcycle insurance is a form of auto insurance. Just like car insurance in Newfoundland, motorcycle insurance is mandatory as well. Specifically, all Newfoundland riders will need to purchase policies with these four coverages:
An insurance broker in Newfoundland will ensure that your policy meets all local laws, as they know the consequences of driving uninsured or without sufficient insurance. In particular, in Newfoundland, motorcycle riders who do not purchase motorcycle insurance coverage can receive a fine of up to $2,600. In addition, your motorcycle might be impounded, and your bike’s registration could be cancelled. You could also earn six demerit points.
In addition to the legal consequences of driving without insurance, if you get into an accident, you would have to pay for the associated costs all on your own, which can add up quickly, especially in the event of a lawsuit. Alternatively, if you obey the law and purchase motorcycle insurance, you can file an insurance claim to receive a payout from your provider to help you cover the costs.
Without further ado, here is a list of mandatory motorcycle insurance coverages in Newfoundland:
Third party liability coverage
Liability insurance will pay for the cost of an accident if you get into an at-fault accident. It can compensate policyholders for all kinds of costs, including but not limited to legal fees, medical expenses, and repair bills.
Accident benefits coverage
Accident benefits coverage can be claimed if you or someone else is injured in an accident. This type of coverage specifically pays for medical expenses or injury-related costs, like lost income or funeral fees. Please note that accident benefits only cover expenses not covered by Newfoundland health insurance. It can also cover expenses relating to the policyholder’s injury or an injury suffered by a passenger or pedestrian.
Direct compensation - property damage coverage
Direct compensation—property damage coverage will pay for you to repair your motorcycle if it is damaged in a collision. The only catch is that you cannot file a direct compensation claim if you were liable for the accident. If you get into an at-fault accident that results in property damage, third-party liability insurance would cover you.
Uninsured automobile coverage
Lastly, uninsured automobile coverage will cover you if you get into an accident with another driver who is either completely uninsured or does not have enough coverage to pay for the cost of the damage. Uninsured motorist coverage can also pay for the cost of a hit-and-run accident where the at-fault driver’s identity is unknown.
Extra protection for Newfoundland motorcycle riders
Mandatory motorcycle insurance coverage may not be enough for some riders. Given the extra risk that you take on as a motorcycle rider, additional protection may be required. Thankfully, there are tons of different types of optional coverage on the market, any of which can be added to a standard motorcycle insurance policy. A few worthwhile motorcycle insurance coverages in Newfoundland include:
Collision coverage
If your motorcycle suffers extreme damage following an accident, collision coverage can pay for it to be repaired or replaced. Since severe damage can be costly, having collision coverage can make a big difference.
Comprehensive coverage
Comprehensive coverage will pay for repairs or losses related to your motorcycle that occur while it’s parked. For example, if it’s stolen out of a parking lot or a hailstorm damages it while it’s parked in your driveway, you can file a comprehensive claim to help you repair or replace it. Perils that comprehensive insurance usually covers include theft, vandalism, riots and explosions, fire, weather-related incidents, and falling and flying objects. Please note that while collision and comprehensive coverage are optional for most motorcycle riders in Newfoundland, they might be required if you lease or finance your motorcycle. Take care to review the terms and conditions of your lease agreement if you do not own your motorcycle.
Accident forgiveness coverage
Accident forgiveness coverage is another type of motorcycle insurance that many riders choose to include in their policies. Accident forgiveness is additional coverage that can be added to your motorcycle insurance policy as an endorsement to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. While your policy premiums may not increase due to the accident, it does not mean that they will not increase due to other factors, such as rate changes in your area. Note: coverage and eligibility vary by province.
Loss of use coverage
Loss of use coverage could also be helpful for Newfoundland motorcycle riders. This type of coverage would pay for you to take other modes of transit if your motorbike was ever damaged and needed to go into the shop for repair. While it’s in the shop, the types of transportation expenses that you could be reimbursed for include the cost of renting a car, taking public transportation, or hiring taxis or ride shares. You can claim loss of use coverage until your motorcycle is fixed or until you reach your coverage limit, whichever comes first.
How do insurance companies calculate Newfoundland motorcycle insurance premiums?
Many riders want to know how much motorcycle insurance costs in Newfoundland. The trouble with this is that rates vary significantly between riders. Therefore, providing an accurate estimate is challenging without knowing more about you and your riding habits. To give you an idea of why it’s hard to answer this question without more information, we provide a breakdown of the various factors that insurance companies consider when calculating motorcycle insurance premiums.
Driving record
Your driving record is perhaps the number one factor that an agent considers when determining your rates. Your record directly correlates to your risk level. The worse your record, the more expensive your policy will likely be, and vice versa. Insurers like to see motorcycle riders with clean records, i.e., those free of infractions like tickets and accidents. This is because they believe that a clean record indicates that you will be less likely to get into an accident and file a claim in the future.
The amount of experience you have driving a motorcycle
The amount of experience you have driving a motorcycle will also come into play. The more experienced a policyholder is, the less risky they are considered to be, and thus, their rates will usually be lower. However, this isn't always the case. Ideally, you want to have ample riding experience and a clean record. You will likely qualify for a cheaper premium if you have both of these. As a new motorcycle rider, you should expect your rates to be a bit higher, at least for a few years, until you have more experience under your belt.
Your motorcycle insurance deductible
Your motorcycle insurance deductible is another factor that will influence how much your Newfoundland motorcycle insurance policy costs. Deductibles are the amount of money the policyholder agrees to pay toward an insured loss in the event of a claim. If you choose a higher deductible, your rates will be lowered, and vice versa. That said, with a high deductible, you will have to pay more money if you file a claim. You will need to decide if the trade-off is worth it. A higher deductible means less money upfront but potentially more money down the line. In contrast, a low deductible translates to more money upfront but less money in the event of a claim.
The make and model of the motorcycle you ride
Models of motorbikes vary significantly. Just like with cars, some have more safety features than others, some are stolen at higher rates, and some have higher speed capacities than others. These differences can influence how much a Newfoundland motorcycle insurance policy costs you. Generally speaking, motorcycles that are more expensive, experience higher rates of theft, have lower safety rates, and have higher maximum speeds are more likely to result in higher insurance premiums. In contrast, budget-friendly motorbikes with high safety ratings and low-speed capacities might translate to cheaper premiums.
Whether or not you completed a motorcycle safety course in Newfoundland
Completing a motorcycle safety course is one way to reduce how much you pay for car insurance. These courses are not mandatory, but you might qualify for a lower premium if you complete one. If you completed a motorcycle safety course at any point, make sure to inform your insurance broker so that this is taken into account when your premium is being calculated.
Where you drive and park your motorcycle
Finally, the locations where you most frequently ride and park your bike also matter. This is because some locations are considered safer or less risky than others. Insurers will look at the crime rates in your neighbourhood, as well as the weather. You may face a higher premium if you live somewhere with a high crime rate or somewhere prone to natural disasters, such as floods or wildfires. In addition, if you park your motorcycle on the street rather than in a garage or a monitored parking lot, it may be more likely to be damaged or stolen, and as such, your rates might be higher.
How to lower your Newfoundland motorcycle insurance premium
Saving money on Newfoundland motorcycle insurance just got easier. Follow the tips below and watch as your premium is lowered.
Take a motorcycle safety course in Newfoundland
Let’s face it - there are plenty of benefits of motorcycle riding, but safety isn’t one of them. When compared to cars, it’s generally considered a riskier mode of transportation. That said, there are ways to increase your safety on the road, and one of them is by taking a motorcycle safety course. These courses will teach you the rules of the road and show you how to drive defensively and respond to certain situations. Plus, if you have completed this type of course, your insurer is likely to give you a motorcycle insurance discount, which can help you save money on your policy.
Bundle motorcycle, auto, and home policies
Bundling insurance policies can also save you a lot of money on insurance. Many insurance companies offer bundles, which are packages that combine multiple insurance products into one. For instance, you might be able to buy a car insurance plan on top of your motorcycle insurance plan or a home insurance plan with your motorcycle insurance plan and qualify for a discount. If you are looking for more than one type of insurance coverage, bundling could be an excellent option for you.
Keep your record clean
If you know how to ride a motorcycle safely, then chances are you have a clean driving record. You may not have realized just how much this can help you. Drivers with clean records are far more likely to qualify for cheaper rates. Plus, if you can keep your record clean for a number of consecutive years, then you might be eligible for a safe driver discount. Reach out to a BrokerLink insurance advisor if you want to learn more about how your record impacts your rates. We can also provide you with a list of safe driving tips and more information on the safe driver discount.
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BrokerLink has established itself as one of Newfoundland's top insurance companies. This is due to our wide range of insurance services and stellar customer service. Ever since we were founded, we have been an insurance brokerage that puts the customer’s needs first. This is part of our customer-driven insurance experience. Contact us today to learn more about what BrokerLink can do for you.
If you’re a member of a group or association, you may be eligible for more discounts.
Contact us
At Newfoundland BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, travel plans, recreational items, or pets, let us help you find the best coverage possible.
You can reach us by phone, email, or visit any of our locations across Newfoundland and Labrador. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
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Motorcycle insurance Newfoundland FAQs
What types of motorcycles can be insured in Newfoundland?
You might be pleased to learn just how many types of motorcycles can be insured in Newfoundland. Just like all car makes and models can be insured, it’s the same with motorcycles. Thus, everything from cruiser, touring, and sports motorcycles to restricted-speed motorcycles, including mopeds and motorized scooters, are eligible for insurance.
What caused my motorcycle insurance rates to increase in Newfoundland?
An infraction on your record is the most likely cause of an insurance premium increase. If you obtain a speeding ticket or get into an at-fault accident, your rates are likely to go up the next time that your policy is renewed. That said, sometimes rates change for reasons outside of your control. Insurance companies underwrite behind the scenes, and as trends or data change, so can your premium.
Where can I get a free Newfoundland motorcycle insurance quote?
Free motorcycle insurance quotes are most often available through insurance brokers and insurance companies. Typically, all you have to do is call one, visit their office in person, or log onto their website to request a free quote. You can expect to receive your quote in as little as five minutes.
Do I need a valid driver’s licence to purchase motorcycle insurance in Newfoundland?
Yes. There is no way around it. You will not be able to purchase motorcycle insurance unless you have a valid licence. You also won’t be able to register your motorcycle in the province without a valid licence.
How do I renew my motorcycle insurance policy in Newfoundland?
Renewing car or motorcycle insurance is quick and easy. The first step is to contact your insurance broker or agent. Let them know before your policy expires that you wish to renew it. Assuming your insurer is willing to renew your coverage, they will send you your new premium, which you will pay either yearly or monthly. Your coverage will continue after the expiry date of your original policy.
If you have any questions, contact one of our local branches.
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