If you ever owned a car, no doubt you have experienced the frustration of buying insurance with a premium price that doesn’t meet your budget. The same thing happens when you purchase a motorcycle. Don’t get stuck wondering why some companies offer such high prices while some others offer dirt cheap rates. There’s a logic behind the madness. Read more and we’ll explain four tips on how to make sure you receive the lowest rates possible.
#1 Switch to a different company
This may seem like a bizarre suggestion, but just hear us out! Insurance companies rely on your assumption that just because you paid for a 6 or 12 month premium that you are stuck with it, even if you now have found a cheaper premium with another company. Don’t fall for this trap. Most insurance companies offer a full pro-rated refund if you decide to cancel your policy. If you find a policy with a different company that offers you satisfactory coverage at a cheaper rate, go ahead and cut the cord with your previous company.
#2 Compare major companies to local companies
Stop a moment to reconsider your notion of insurance. Think of it like you would any other commodity. If a product is purchased wholesale from the manufacturer, or in the case of insurance, from a big company, you are buying directly from the supplier. This often leads to higher prices unless you are willing to purchase insurance in bulk. But rare is the consumer that needs to purchase insurance for 100 motorcycles. Instead, we suggest going to your local vendor, or in this case, your local insurance broker. Just like the mom and pop shop that offers you deals no one else can, your local broker may cut you a deal no big company can match.
#3 Convince them you’re low risk
The insurance company bases the price of your premium off of how much of a risk they perceive you to be. This is called a Risk Premium. To have this rate lowered, you simply need to convince them you are not at high risk for an accident. You can do this by installing several kinds of anti-damage devices on your bike, storing your bike instead of riding it for most of the year, or by refusing to transport other passengers on your bike.
#4 Get experienced
Similarly to our #3 tip, part of convincing your agent that you are not dangerous is to advance slowly as you purchase bigger, faster bikes. They want to know that you are not jumping from a bike to driving a car. Show them you aren’t by moving gradually to higher cc levels. Also, consider trading your bike in for a smaller model, as many insurers now give discounts when you downsize.
To find out more tips and how we can help you save money on your insurance, contact us today.