By law, most motorcycle operators have to carry insurance. However, you might wonder how your insurer will determine your insurance rates.
While each company determines rates differently, many often use similar criteria. Here are five ways that insurers might determine policy rates. If you understand these factors, you may be able to save on your coverage.
Where you live might impact how much you pay for motorcycle insurance. Insurers might factor the local accident or theft rates into how much risk your bike faces. They may even use your proximity to a police station to determine risk. For example, urban drivers may pay more than rural drivers due to the higher accident risk in their area.
It may not be possible to change your location to decrease your auto insurance rates unless you move. However, you can still be a defensive and attentive driver. This can increase your on-road security and prevent accidents. Your insurance may offer you an accident-free discount for being a safe driver.
2. Your Deductible
Think of your motorcycle insurance deductible as your financial responsibility for a claim. You pay the deductible value and your insurer pays the remaining value of the claim. If you raise your deductible, this can lessen the amount that an insurer might have to pay out in the event of a claim. Therefore, insurers may decrease your rates.
3. Coverage Levels
Most states require motorcyclists to carry minimum levels of liability insurance. You can, however, often choose higher coverage levels than the minimum requirements. The levels you choose might increase your policy rates.
The key is to strike the appropriate balance. Don’t buy too little coverage, as it may not provide enough funds to help you in the event of an accident. However, don’t buy too much coverage, as you might wind up paying for insurance you don’t reasonably need. Your agent might be able to help you get the right coverage levels.
4. Your Driving Record
Almost every insurer will take your driving history into account when determining rates. Motorcyclists with a history of accidents, tickets or other charges often pay higher rates. By being a safe driver, you can reduce the chances that you will pay a higher insurance rate.
5. Your Bike
The value of your motorcycle may impact its costs risks in the eyes of your insurance company. The higher the value of your vehicle, the higher your risks. Thus, the likelihood increases that you might pay more.
If you buy a high-value motorcycle, do your best to keep it safe and in good shape. Perform regular maintenance and keep the vehicle safe from theft or environmental hazards. You can therefore protect the bike’s value.
Get affordable Baton Rouge motorcycle insurance today. Call The Louisiana Insurance Center at (225) 292-7680 for more information.