What Affects the Cost of Your Motorcycle Insurance?

Posted By: Team Moody,

As you would with a car, you’ll need insurance to protect yourself, your passengers and your investment. Most states require motorcycle owners to buy liability insurance. The lowest amount of liability insurance you must buy for your motorcycle is the same as your state’s car insurance minimum requirements.

Consider purchasing extra liability beyond your state’s minimum requirements to protect your assets in case you’re sued over an accident. Minimum liability limits might not be enough to pay your legal costs and claims if you’re sued, and creditors could go after some of your assets.

You need a policy that fits your needs and lifestyle. In order to find out what coverage is best for you, it is important to understand available options and speak with a worldwide motorcycle insurance agent.

Basic Coverages

Liability Insurance

Covers bodily injury and property damage that you may cause to other people involved in an accident.

Motorcycle collision insurance

Covers damage to your motorcycle if you are involved in a collision with another vehicle.

Comprehensive coverage

Pays for damages caused by an event other than a collision, such as fire, theft or vandalism.

Coverage for customized motorcycle parts

Many comprehensive and collision policies will only cover the factory standard parts on your motorcycle, or they will limit the coverage. If you decide to add on any optional accessories such as chrome parts, a custom paint job, trailers or sidecars, check with your insurer to understand the limits of coverage.

Uninsured/underinsured motorist (UM/UIM) coverage

Pays for damages to you and/or your property caused by another driver who is either uninsured or underinsured.

Destroyed or Stolen Bikes

One of the most important things to understand about your motorcycle policy is how it pays out if your bike is destroyed or stolen. There are three types of settlements. These are:

Actual cash value

Pays out the cash value of what your bike is worth, minus depreciation and your deductible.

Stated amount

Pays the amount you selected when you bought the policy.

Agreed value

Pays the amount you and the insurance company agreed on when you bought the policy. The amount remains fixed, and no deductible is taken from a claim check.

Costs Factors

  • Your age, your driving record and where you live
  • ​Type or style of bike you ride—for example, sport bike, cruiser or custom motorcycle
  • Age of the motorcycle
  • Number of miles you ride a year
  • Where you store your bike


As with auto insurance, maintaining a good driving record with no violations will help keep your premium costs down. In addition, some insurers offer driver discounts and other ways to save money on your motorcycle policy. While offerings may vary by state and insurer, the following are common discount opportunities:

  • Training course discounts
  • Multi-bike discounts
  • Organization member discounts might be available if you belong to a motorcycle clubs or other associations.
  • Mature rider discounts
  • “Lay-up” policy savings
  • A lay-up policy may also be offered for when drivers put their motorcycles away. During the lay-up period, insurance still covers you against theft and other events that can happen while your bike is in storage.
About Moody Insurance Worldwide

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.