Is Motorcycle Insurance Really More Expensive?

Is Motorcycle Insurance Really More Expensive?

As a motorcycle owner, you already enjoy some additional benefits not shared by regular car drivers. More often than not, motorcycles are cheaper to maintain, have lower fuel consumption, can easily navigate through traffic, and park effortlessly. However, does this mean you also have an advantage on your motorcycle insurance payments? Most people automatically assume there's an easy answer to this.

As research shows, motorcycles are more susceptible to road accidents and accessory theft.  Therefore, anyone owning and riding a motorcycle– whether it is to get him around town or take weekend road trips to the countryside – should have insurance cover. The cost of cover for a motorcycle will, typically, be higher than the price of car insurance. While your insurance company principally controls how much money you spend on your premium, you actually have a say in the matter too. Insurers can offer several motorcycle insurance options that potential policy holders can choose from.  See more about these options on our concise Hippo FAQ.

Comprehensive motorcycle insurance

Comprehensive motorcycle insurance is always the most inclusive option and thus the priciest. In addition to covering all third-party claims, it covers the repair or replacement of your bike in the event of theft, vandalism, fire damage and natural disasters.

This is how motorcycle insurance really works:

Your specific needs determine how much you will be charged for motorcycle insurance; a comprehensive price plan will vary depending on certain criteria, which can include the following:

1.       Your gender and age

          According to a report by Arrive Alive, motorcycle riders between the age of 16 and
          24 are more likely to be involved in road accidents, while 96% of accidents involving
          motorcycle riders are male. If your insurer is convinced by these statistics, then
          young males are likely to cough up more on their motorcycle insurance premiums.

2.       The area where you live

          The cost of cover for your motorcycle will increase if you reside and travel in an area
          with a greater possibility of accidents, theft and natural disasters.

3.       The type of bike you ride

          If you drive a big, shiny motorcycle with lots of horse power, then you can expect
          your insurance premium to be expensive, as these elements increase your risk of a
          road accident and subsequent claim.  

4.       Your security measures

          You're bound to pay a higher premium on your motorcycle insurance if you're not
           keeping your motorcycle in a locked garage or don't have other security measures in
           place such as a wall anchor or a disk lock.

5.       Your driving record

           If you have had any claims in the past, this will be taken into account by your
           insurer in setting up the cost of your motorcycle insurance. That means you could
           possibly pay a pretty penny to keep your bike covered.

Getting Specific

We’ve used the Hippo.co.za Comparison tool to compare the insurance cost for a motorcycle to that of a normal car to see which is more expensive.  We’ve concluded that:

• A 25 year old male driving a Ford Fiesta Titanium with a value of R229 900.00 could pay between R600 and R800 per month for comprehensive car insurance.
• For a BMW K 1600 GT motorcycle with a value of R 229 800,00, he could pay between R2000 and R4000 per month for comprehensive motorcycle insurance.

To determine if age really plays a part in how much you pay for motorcycle insurance, we’ve compared the details of the 25 year old male to that of a 40 year old male. The results were as follow:

• If the 40 year old male were to drive a Chevrolet Spark Lite with a market value of R104 000, he could pay an average of R300 to R500 per month for comprehensive car insurance.

• For a Harley Davidson Iron 883 motorcycle worth R104 000 motorcycle he could pay an average of R600 to R700 per month for comprehensive motorcycle insurance.

To further establish if gender can also affect your insurance premium, we’ve entered the details of a 30 year old female, and found that:

• For a Renault Sandero Stepway with a market value of R174, 900, she could roughly pay between R300 and R400 per month for comprehensive car insurance.
• For a Honda CBR 1000RR motorcycle worth R174, 990 she could pay a little over R1100 per month for comprehensive motorcycle insurance.

The above three cases confirm that motorcycle insurance is indeed more expensive than car insurance.  They also show that factors such as age and gender can influence your monthly premium, as the 24 year old male in our case study could pay over a R1000 more on his motorcycle insurance than the 40 year old male, both of whom could pay a higher premium than the 30 year old female.    

An important point to bear in mind is that no two insurers are the same. Therefore, you should compare the prices and benefits from a range of insurance providers to ensure you are getting the best deal – using comparison websites, such as Hippo.co.za, can save you both time and money. And, when you've found the perfect insurance company, you can keep your policy lower by having the necessary safety precautions in place. You could also take an advanced riding course, adopt defensive driving techniques, and apply security measures to your bike to stay claim-free.

Prices and amounts quoted above are risk profile dependent, and could vary according to the specific risk profile and needs of the person applying.