Why Is Motorcycle Insurance So Cheap?

If you’ve ever looked at your Motorcycle insurance quote and thought, “Wait, that’s it?” – you are not imagining things. Motorcycle insurance is often noticeably cheaper than Auto insurance. But why is Motorcycle Insurance so cheap?

Let’s break it down.

Let’s face it – when a motorcycle is involved in an at-fault accident, the odds of it plowing through someone’s garage or totaling a third-party vehicle are significantly lower than, say, a full-sized SUV doing the same. The smaller size and lighter weight of a motorcycle mean it’s less likely to cause major property damage, though, unfortunately, the rider is often more vulnerable, according to the National Highway Traffic Safety Administration (NHTSA).

Less risk to others = lower liability payouts = lower insurance premiums. Simple as that.

Motorcycles tend to cost less than cars – sometimes a lot less. And since insurance companies base part of your premium on how much they might have to pay out in a total loss, a less expensive vehicle naturally equals a lower rate.

You are not just paying less at the dealership – you are saving on the backend, too.

In general, repairing a motorcycle costs less than fixing a car. Fewer parts, simpler systems, and less labor all factor in. Even if your bike is totaled, it will likely cost the insurance company far less to replace it than a vehicle with four wheels and a built-in infotainment center.

Unlike cars, most motorcycles don’t brave the rain, snow, or icy roads. In fact, in many parts of the country (even parts of California), riders tuck their bikes away for the winter or avoid riding on stormy days.
Fewer miles on the road means a lower risk of accidents – which makes insurers breathe easier. And when they are less likely to pay out a claim, they pass those savings on to you.

You might have heard of “lay-up” Motorcycle policies that suspend coverage during the off-season, but those are more common in colder states. In California, most insurers don’t offer true lay-up options. Instead, you can talk to your broker about adjusting your coverage during your off-months – just don’t drop liability if the bike is registered and could still be taken out for a spin.

Before you start bragging about your cheap premium to your car-owning friends, let’s cover a few situations where motorcycle insurance isn’t so budget-friendly:

• Sport and supersport bikes: These high-speed machines often come with high-speed price tags on insurance. They are faster, more expensive, and statistically more likely to be involved in accidents, so they are more expensive to insure.
• Young or inexperienced riders: New riders = higher risk = higher premiums. Just like with Auto insurance.
• Year-round use: If you ride your motorcycle daily, expect higher premiums than the occasional weekend cruiser.
• Coverage add-ons: Adding extras like Comprehensive, Collision, Custom Parts coverage, or Roadside Assistance will also increase the premium, but it is usually worth it.

Here’s something many riders don’t think about: motorcycle accidents often result in injuries to the rider – not just others on the road. And unlike a car, you don’t have much protection between you and the pavement.

That’s why we always recommend choosing the highest Medical Payments coverage your insurance company offers. Medical Payments can help cover hospital bills, ambulance rides, and other medical expenses, even if the accident is your fault.

It’s usually not expensive, and it can make a huge difference when you need it most.

an A motorcycle might not crash through a wall of your house or take out a fence (at least not to the extent a car might), but it can still injure someone just fine, and medical bills and lawsuits can climb up fast. If your liability coverage isn’t high enough, you could be left footing the bill out of pocket.
That’s where an Umbrella policy steps in. It gives you an extra layer of liability protection, but only if your Motorcycle policy is included and meets the required underlying limits. Learn more about Umbrella policy here.

If you have multiple vehicles, rental properties, or high-value assets, an Umbrella Policy is truly worth considering. Just make sure your bike is part of that coverage. It’s an easy step that can save you a world of financial trouble later.

So, why is Motorcycle insurance cheap? In many cases, it’s because motorcycles are less likely to cause big-dollar damage and don’t cost as much to repair or replace. But remember, the type of bike you ride, your driving history, and how often you are on the road can tip that price scale in either direction.

If you are unsure whether you are overpaying (or under-insuring), call your insurance agent or broker (ahem). Let those two wheels move your soul, and let us help you with coverage that matches your ride.