Motorcycle insurance cost like any other insurance cost is largely determined by the exposure to risks. The higher the risks of loss to the cyclists or the cycle, the greater the insurance costs. Therefore, in United States or regions which have a long history of having high numbers of motorcycle insurance, the motorcycle insurance cost will invariably be high. A cyclist's record of road traffic offenses including drunken riding of motorcycle is also a factor that may determine motorcycle insurance cost. The higher the incidences of on police records motorcycle accidents or reported drunken riding, the more the costs of insurance.
A motorcycle insurer, just like all other insurance companies, makes his profits from the unclaimed covers. It is a game of probability. The higher the probability that most of the clients will make claims, the greater will be the need to cushion the company by increasing the premiums.
To cut motorcycle insurance cost, all the above factors need to be considered. Let us begin by considering the environmental determinants of cost and how to limit them. Before you make a decision to purchase a motorcycle, consider how safe it is to ride a motorcycle in your town. This little effort may provide you with vital information that may save you a good amount of your motorcycle insurance cost. If there are too many accidents, then it would be wiser to consider using investing in another form of private transport. Besides, the accident rates, the credibility of an insurance firm may be a point to consider. Credible firms usually have served for many years and have large base of customers. They, therefore, are more equipped to spread the risk thus charge lower fees for purchase and premiums for motorcycle insurance cost.
Other costs determinants are personal. Once you own a motorcycle, make every effort to be a safe rider. This will definitely pay in the long run as one ends up paying lower premiums. Gender is another factor. In most countries, women are considered less risk drivers or riders and they pay lower premiums. Age is another factor, if you are older with few accidents records, you may be considered safe rider and pay less premiums. The cost and age of your motorcycle will also determine the cost. New but expensive cycles attract high premiums just like very old cycles which are more likely to breakdown.
Therefore, in cutting down motorcycle insurance cost, both the environment and the individual are responsible.