Why is Motorcycle Insurance so Expensive?

Often, you will find people complaining about motorcycle insurance premiums. A lot of people claim that motorcycle insurance is really expensive, while others argue that it’s actually not.

So, who’s right? In reality, both sides are. Motorcycle insurance rates vary widely depending on your age, location, bike type, and several other factors. What feels expensive for you might be affordable for another rider.

To clear the confusion, this article further explains whether motorcycle insurance is actually expensive, what influences your premium, and how you can potentially lower your rates.

Is Motorcycle Insurance Expensive?

Let’s analyze the average cost of motorcycle insurance to determine whether motorcycle insurance is actually expensive. The average rate of motorcycle insurance for liability-only coverage generally ranges from $100 to $500 annually, while full insurance coverage can cost you a high rate of $1,500 to $2,500 or more per year.

If you’re exploring motorcycle insurance coverage and have come across similar rates, then yes, motorcycle insurance is expensive for you. Usually, riders with a clean riding history with no insurance claims can acquire motorcycle insurance with premiums as low as $7 to $21 per month for liability-only coverage, which is $84 to $252 per year.

While an affordable full insurance coverage can cost you $571/year ($48/month) to $942/year ($78/month), which is less than $1,000 per year on motorcycle insurance. Now, if you compare both of these scenarios, there’s a significant difference in motorcycle insurance rates. This proves that motorcycle insurance can be very expensive for some riders, while it can be surprisingly cheap for others.

It can be hard to afford and obtain adequate motorcycle insurance coverage if you have to pay expensive premiums. If you’re looking for a reliable insurance agency offering the cheapest motorcycle insurance policy in Michigan, you should explore PLPD’s extensive insurance solutions.

If you need a detailed guide on motorcycle insurance rates in Michigan, refer to this detailed blog on How Much is Motorcycle Insurance in Michigan.

Factors that Influence Motorcycle Insurance Rates to Increase

If you’ve ever wondered why your motorcycle insurance quote is so high, it usually comes down to several key factors. Premiums are determined by evaluating aspects like age, location, accident risk, type of motorcycle, choice of coverage, riding history, and prior claims.

Here’s a detailed breakdown of each of these factors to help you understand why motorcycle insurance rates can be expensive and what influences the final cost.

Age

One of the main reasons why motorcycle insurance is so expensive for you might be your age. If your age is between 16 and 20, you will face the highest rates. This is because the younger riders are perceived to engage in risky behaviors such as speeding or riding under the influence, leading to a higher accident frequency.

Premiums usually decline as riders gain experience over time, but tend to rise again after age 65, when health factors like reduced eyesight, hearing, and slower reflexes can increase the chances of accidents.

The table below shows how age impacts motorcycle insurance premiums, which will help you understand how rates vary across age groups.

Source: Statista

Location

Your motorcycle insurance premiums can become expensive depending on your location. Rates can vary significantly from state to state because insurers consider factors such as traffic density, accident frequency, theft risk, and weather conditions in each area.

To help you compare, the table below shows the average motorcycle insurance rates by state.

Source: ValuePenguin

10 Most Expensive States for Motorcycle Insurance

These states have the highest average monthly premiums, often due to factors like longer riding seasons, higher accident rates, and increased theft risks.

10 Cheapest States for Motorcycle Insurance

These states offer the most affordable premiums, often due to shorter riding seasons, lower accident rates, and fewer theft incidents.

High Risk of Accident, Injury, and Fatality

Compared to cars and other vehicles, motorcycles are more prone to severe accidents that can lead to serious injuries, and even death, due to a lack of protective barriers. And, as two-wheeled vehicles, they are also more vulnerable to road hazards, weather conditions, and loss of balance.
According to NHTSA, there were 82,000 injuries in 2022 and 82,564 injuries in 2023 due to motorcycle accidents. On average, motorcycle accidents lead to around 82,000 injuries per year.
Motorcycle accidents also have a high death toll. Based on NHTSA statistics, there were over 6,000 deaths in 2022 and 6,335 deaths in 2023 due to motorcycle accidents. Out of the 6,335 fatalities, 95% of the deceased are riders, and 5% are passengers. Furthermore, the reports also suggest that motorcycles are 4 times more prone to injuries, and 28 times more prone to accidents compared to cars and other vehicles.

Given these risks, motorcycle insurance premiums are typically higher, especially in regions with frequent accident trends. Additionally, if you have a history of at-fault accidents, your individual rate may increase even further, leading to expensive premiums.

Also Read: Does Motorcycle Insurance Cover Medical Bills

Type of Motorcycle

Your motorcycle insurance rate will significantly vary based on the type of motorcycle you own. Standard motorcycles and cruisers generally cost less to insure than sport or performance bikes, mainly because they are less expensive to repair or replace and are typically ridden more conservatively.
On the other hand, sport bikes tend to have higher accident and theft rates, which increases the insurer’s risk. As a result, owning a high-performance motorcycle can lead to significantly higher insurance premiums compared to owning a standard or touring model.
The table below shows motorcycle insurance costs by type, along with their make and model.

Source: ValuePenguin

Choice of Coverage

Your motorcycle insurance rates mainly depend on your choice of coverage and the limit you choose to purchase. If you opt for just the basic mandatory liability coverage with minimum coverage, then your annual premium will most likely range from $100 to $500.
However, if you purchase other essential optional coverage, such as collision coverage, comprehensive coverage, medical payments coverage, uninsured/underinsured coverage, gap insurance, roadside assistance coverage among others, your premiums are likely to increase.

The combination of liability coverage with collision and comprehensive coverage is typically known as full insurance coverage. Of course, you can add more coverage to the full insurance coverage as mentioned above.

The combination of liability coverage with collision and comprehensive coverage is typically known as full insurance coverage. Of course, you can add more coverage to the full insurance coverage as mentioned above.

The average cost of full insurance coverage ranges from $571 to $942 per year, but it can even exceed $2,500 depending on your choice of coverage.

Riding Records

When it comes to determining your motorcycle insurance premiums, your insurer will evaluate your riding history. If you have a clean riding record with no accidents or traffic violations, particularly in the last three years, you qualify for cheap, and affordable rates.
However, if you have a poor riding history with multiple accidents, traffic violations, and legal penalties, you’re likely to face increased premiums. Insurance companies have access to DMV records, which allows them to track your driving records against your license and VIN (vehicle identification number).

Insurance Claims History

Another way of determining your motorcycle insurance rate is to evaluate and review your insurance claims history. The more you claim insurance, the higher your premiums are likely to be in the following year.
Insurers generally evaluate and determine motorcycle insurance rates by analyzing the number of claims and the amount compensated in the last three years. Even a single insurance claim can significantly increase your motorcycle insurance rates in the following year.
While some insurance companies have an accident forgiveness policy, it only applies to your first insurance claim. Repeated or high-value claims signal higher risk, which can make your motorcycle insurance policy significantly more expensive over time.

Bike Usage (Miles Covered)

The more you ride your motorcycle on the streets, the higher the chances of getting into an accident. Your insurer will check your motorcycle’s odometer and run your bike’s VIN to verify your annual mileage.

If your mileage exceeds 7500, your motorcycle insurance rate will start increasing. So, if you have a high annual mileage of over 10,000 and above, you may face significantly higher premiums, which can make your motorcycle insurance policy expensive.

Opting for Lower Deductibles

You will first have to pay your deductibles out of pocket after an insurance claim before getting covered by your policy. The advantage of opting for lower deductibles is that it reduces out-of-pocket expenses after filing a claim.

While the choice of lowering deductibles puts you on the safer side financially, it can increase your motorcycle insurance rates significantly, depending on the amount you have reduced.

High Risk of Motorcycle Theft

Motorcycles are one of the most frequently stolen types of vehicles in the U.S. due to their smaller size and ease of transport. Unlike cars, motorcycles lack built-in anti-theft systems and can be loaded onto a truck or trailer within minutes, making them attractive targets for thieves.

According to the National Insurance Crime Bureau (NICB), over 54,736 motorcycles were reported stolen in 2022, with theft rates rising steadily since 2019. On average, 2.4 million motorcycles are stolen every year in the U.S., with a total annual value of $1.4 billion. Insurers closely track these statistics when calculating premiums.

If you own a motorcycle model with a high theft rate, such as a sport bike or a high-performance model, your insurance cost will likely be higher. Similarly, parking your motorcycle in urban areas or public spaces instead of secure garages can increase your theft risk, leading to higher premiums.

Motorcycle and Parking Safety

If your motorcycle isn’t kept in a safe parking space and is vulnerable to theft, vandalism, collision, or any weather-related damage, your premiums can significantly increase. If you don’t have adequate parking safety, it increases the chances of theft and other forms of accidental damage.

So, based on the risks imposed, your insurer may charge you a significantly higher premium, which can make your motorcycle insurance policy expensive.

Credit Score

Many insurers refer to credit scores to verify whether the policyholder can pay on time. If you have a good credit score, it indicates that you pay your credit dues on time, or at least within the deadline.

On the other hand, a poor credit score means that you haven’t paid your credit bills within the due date. This indicates a high possibility of deferred payment of insurance premiums.

While a credit score is a common metric to determine motorcycle insurance rates, it is prohibited in California, Hawaii, Massachusetts, and Michigan. So, if you’re located in any of these four states, your credit score can influence your motorcycle insurance rate, leading to higher premiums if you have a poor credit score.

Motorcycle Customization and Modification

If you customize and modify your motorcycle starting from the rims, brakes, to the chassis, engine, and any other part, your motorcycle’s current market value can significantly change. More importantly, it can increase your motorcycle’s repair and replacement costs, especially if the custom parts are more expensive.

If you’re already insured, it’s important to notify and consult your insurer before making modifications. This allows you to adjust your coverage or negotiate rates in advance. Keep in mind that if the modifications increase repair or replacement costs, your insurer may charge a higher premium to reflect the added risk.

Is Motorcycle Insurance More Expensive Than Car Insurance?

No, motorcycle insurance is still far cheaper compared to car insurance. The average cost of liability-only motorcycle insurance coverage is $252 per year, whereas liability-only coverage for car insurance costs $806 per year.

The difference is even higher for average full coverage insurance. The average cost of full coverage motorcycle insurance is $942 per year, whereas the average premium for full coverage car insurance is $2,671 per year.

Whether it’s a car or a motorcycle, insurance rates are determined based on the vehicle’s actual cash value. The price of a standard motorcycle ranges from $4,000 to $15,000, while sports motorcycles are available within $20,000. The price of a standard sedan car is around $30,000, while sports and luxury cars can cost around $40,000 to $75,000 or more.

As cars have a higher market value compared to motorcycles, their insurance premiums are naturally more expensive.

Tips to Lower the Cost of Motorcycle Insurance

While you may get expensive motorcycle quotes based on several factors, there are ways to reduce them with the right steps. Here are some expert tips that you should follow to qualify for a cheaper motorcycle insurance rate with loyalty incentives.

• Choose Your Motorcycle Wisely: If you haven’t purchased a motorcycle yet, you should choose a motorcycle with advanced safety features to reduce the risk of accidents and theft. This will help you reduce your premiums.    
• Add Safety Features: You can add additional safety features to your motorcycle to prevent the risk of theft, such as installing an alarm system with superior locks. Plus, you can also invest in security cameras to make your parking lot or garage space more secure.   
• Take a Motorcycle Safety Course: Completing a motorcycle safety course demonstrates that you’re taking steps to become a more responsible rider. Additionally, it proves that you’re aware of safe riding practices and techniques.   
• Maintain a Clean Riding Record: With a clean riding record, you can qualify for more affordable premiums. If you have a poor riding record, make efforts to avoid traffic violations by obeying traffic rules, and maintaining safe riding practices.    
• Pay Your Premiums in Full: Many insurers offer discounts for paying your premiums in full per year. By paying your premiums at once, it’s possible to significantly reduce your motorcycle insurance cost.   
• Understand Your Motorcycle Insurance Requirements: Avoid purchasing coverage that you don’t need. Instead, you can acquire higher limits for coverage that provide essential protection based on your requirements.     
• Get Telematics/Mileage-Based Coverage: If you don’t ride your motorcycle regularly or if your annual mileage is less than 7,500 per year, you should consider telematics coverage, which is mileage-based coverage. This will help you save up to 40% on your premiums.   
• Opt for Higher Deductibles: If you can afford a higher deductible, it would be a smart choice to increase it to reduce your motorcycle insurance premium.   
• Shop Around: Insurance premiums can vary from one insurer to another. By exploring and getting quotes from multiple insurers, you can get better coverage at a more affordable rate.

Need Affordable Coverage in Michigan? Get the Cheapest Motorcycle Insurance Policy with PLPD Insurance

Yes, motorcycle insurance can be expensive, but the rates ultimately depend on the insurer. If you’re struggling to find a trustworthy insurance agency in Michigan that offers the cheapest motorcycle insurance policy, you should consider exploring PLPD Insurance.  Ever since 1925, PLPD Insurance has been making efforts to ensure every motorcyclist stays financially protected with adequate coverage. So, contact us today, and our agent will work with you to create a custom motorcycle insurance policy that’s not just cheap but provides the best combination of the required coverage within your budget.

Frequently Asked Questions (FAQ)

Why is it so expensive to insure a motorcycle?

Motorcycle insurance is often more expensive than it might seem because motorcycles are more vulnerable than cars, with higher risks of accidents, serious injuries, and fatalities. Insurance rates are influenced by factors like bike type, rider age and experience, claims history, parking safety, and custom modifications, all of which can increase repair, replacement, or theft costs. Insurers charge higher premiums to offset these risks, making motorcycle coverage more costly for certain riders and motorcycles. 

How does my age affect motorcycle insurance rates?

Younger riders (ages 16–20) usually face the highest premiums due to inexperience and higher accident risk. Rates generally decrease as riders gain experience, but can rise again for seniors, depending on health and reaction times. 

Does the type of motorcycle affect insurance cost?

Yes, high-performance, sports, or custom motorcycles often cost more to insure than standard bikes or cruisers due to higher repair costs, accident risk, and theft rates. 

Will modifications increase my insurance cost?

Yes, customization can raise the bike’s market value and repair costs. Always notify your insurer before making modifications, as failure to do so can affect your coverage or result in higher premiums. 

How does claims history impact motorcycle insurance rates?

Frequent or high-value claims signal higher risk to insurers, resulting in increased premiums. Accident forgiveness may help for the first claim, but repeated claims will likely raise costs.