Is Motorcycle Insurance Expensive?

When it comes to having a generalized idea, motorcycle insurance is often considered expensive. But is it really? Typically, the rate of insurance depends on various factors, such as your location, age, insurance history, riding experience, motorcycle type, and most importantly the type of coverage and its limit.  

The cost of motorcycle insurance can significantly vary depending on whether you get minimum coverage, or full coverage along with any additional policies. On average, the cost of minimum liability-only insurance is $13 per month, and $156 per year. And the average cost of full coverage motorcycle insurance is $33 per month, and $396 per year.

Is Motorcycle Insurance Actually Expensive?

If you’re shopping for motorcycle insurance, and if you have been browsing online, you may have come across two different perspectives. While some people claim that motorcycle insurance is expensive, others say that it’s cheap, and reasonable.  

On the other hand, if you have already approached a few insurance companies for motorcycle insurance quotes, and if they’ve offered you a rate that seems expensive, then it could be due to their own terms and conditions, along with some of your individual factors.  

But what’s the reality here? Is motorcycle insurance actually expensive? Typically, the cost of motorcycle insurance can range from just $396 to $800 per year or more for full coverage! In some cases, the cost of your motorcycle insurance can even exceed $2,500 per year.  Well, the reality is, motorcycle insurance isn’t cheap, it can be quite expensive, or in other words it can be very expensive. On a broad aspect, if motorcycle insurance is compared to car insurance, then yes, it’s definitely cheaper. This is mainly because cars are relatively much more expensive compared to motorcycles.  

You can buy an entry level motorcycle for about $4,000, but to buy a brand-new entry-level car, you need $20,000 to $25,000. As cars are generally more expensive, its repair and replacement cost are much higher as well, and that’s why motorcycle insurance is relatively much cheaper than car insurance.  

According to Bankrate, the average cost of minimum coverage car insurance is $678 per year, and full coverage car insurance is $2,458 per year, which is basically four times the rate of the average motorcycle insurance.  

If you set the comparison aside, and consider motorcycle insurance rates on the higher end, then it is actually very expensive. When it comes to determining insurance rates, several factors are always considered.

While motorcycle insurance can be really cheap, and affordable it can also be very expensive. So, based on your motorcycle insurance needs, if you’re getting quotes for higher and more expensive rates, then there are concerning reasons for it.

If you’re looking for an affordable insurance agency that offers affordable and the cheapest motorcycle insurance with the best coverage options, consider checking our insurance packages.  

10 Reasons Why Is Motorcycle Insurance So Expensive?

Ever wondered by the motorcycle insurance rates can be as high as $2,500 or more per year? With the national average rates being as low as $396 per year, how does it climb to $800, $1000, or even $2,000 and above?  

Well, to specifically answer that question, it’s necessary to dive deeper, and explore 10 reasons why motorcycle insurance is so expensive.  

Your Location Can Drive Up Insurance Costs

Your location is among the key contributors when it comes to varying insurance rates which is primarily based on local motorcycle insurance laws, accident rates, crime rates, weather conditions, availability of roads, and traffic management system and more.  

Typically, states with higher traffic, accident rates, and more severe weather conditions have a higher motorcycle insurance rate due to an increased volume of insurance claims. The table below shows the average motorcycle insurance rates across states in the US as of 2023.  

When it comes to expensive motorcycle insurance rates, California has the highest monthly rate of $151, and an annual rate of $1,812, which is 2.9 times more than the national average of $620 per year.

To get a more specific overview, here are the top 5 most expensive states with the highest annual motorcycle insurance rates as follows. 

• California: $1,812
• Louisiana: $1,140
• Missouri: $1,020
• Michigan: $948
• Florida: $936

Similarly, here are the 5 cheapest states with the lowest annual motorcycle insurance rates as follows.

• North Dakota: $336
• Iowa: $408
• Wyoming: $444
• Nebraska: $456  
• South Dakota: $456

High Motorcycle Accident Rate

If you live in an area with a high motorcycle accident rate, then you can expect higher motorcycle insurance premiums. This is mainly because the increased number of accidents claims to lead a higher number of insurance claims, which influences motorcycle insurance rates to rise.

If you look into motorcycle accident trends in recent years, the number of injuries and deaths due to motorcycle accidents have been alarmingly high throughout the US. According to NSC’s motorcycle injury and fatality statistics, here’s the following outcome of motorcycle accidents in the last 3 years.

• 2020: 79,000 injuries and 5,620 deaths
• 2021: 83,000 injuries and 6,143 deaths
• 2022: 82,687 injuries and 6,218 deaths  

The statistics above present the motorcycle accident rate throughout the country. Based on recent statistics, here are 6 states with the highest number of motorcycle accident deaths.  

• Florida: 668  
• California: 634
• Texas: 564
• Arizona: 232
• Georgia: 221
• North Carolina: 220

Younger Riders Often Pay Higher Premiums 

Unfortunately, motorcycle insurance is still the most expensive for younger, or more precisely the youngest riders between the ages of 16 to 20. This is typically because young riders are often involved in the highest number of accidents due to behaviors like speeding, reckless activities such as racing, and riding under the influence.

According to recent statistics the following includes the monthly average motorcycle insurance premiums by age.  

Typically, if your age is between 16 to 18, you’re expected to pay higher motorcycle insurance rates, which can make it significantly more expensive, especially because young riders are considered inexperienced and are generally perceived as high-risk riders.  

Poor Riding History Raises Rates 

If you have a poor riding history which includes certain traffic violations and legal penalties such as speeding tickets, fines, and even jailtime, most insurance will charge you higher premium. These infractions indicate negligence to traffic laws, and it poses you as a high-risk rider to insurance companies with the possibility of frequent insurance claims.  

Your insurance rate can significantly mount up, if you face more severe legal penalties like license suspension due to multiple traffic violations, drunk driving, or being involved in an at-fault accident. As you can’t get motorcycle insurance without a license you will have to apply for SR-22 or F-44 certificate to maintain minimum liability insurance.  

Here’s another concerning problem, only some insurance companies provide the SR-22, or F-44 certificate as it’s specifically considered for policyholders with a suspended license who are often seen as high-risk riders.  

Depending on the number of accidents you were involved in, and the number of traffic violations you’ve been penalized for, your motorcycle insurance rate can increase by 20% to 95% or more. Severe traffic violations like driving under influence (DUI) can spike up your motorcycle insurance rate by 160%.

Frequent Insurance Claims Make Premiums Skyrocket

Insurance companies determine risk factors mainly by assessing how frequently you have claimed insurance. If you have a track record of claiming frequent motorcycle insurance in the past 1 year, then your insurance rate can increase by 20% to 40% or more.  

In most cases, the increased motorcycle insurance rate can stay in effect for 2 to 5 years. It depends on the insurance company’s policies, and pricing criteria. What’s even worse is, if you make too many frequent claims it can lead to the cancellation of your motorcycle insurance policy, and you may have to opt for high-risk insurance which can be incredibly expensive.

So, the more frequently you claim your motorcycle insurance, the more expensive it’s likely to be.  

High-Value or High-Performance Motorcycles Cost More to Insure

If you have a high performing motorcycle such as a sports bike or a tourist motorcycle, you’re substantially at a higher risk of theft, accidents and expensive repair costs. As these high performing motorcycles have a high market price of $10,000 to $20,000 and beyond, it’s parts, and maintenance cost is also higher.

Also, as these high performing motorcycles are built for high speed, and long trips, it increases the chance of getting into a motorcycle accident. When it comes to reckless riding, speeding is technically the number#1 cause of motorcycle accidents.  

According to ValuePenguin, here’s the monthly average cost of motorcycle insurance by its type as follows.  

• Sports Motorcycle: $367
• Touring Motorcycle: $278
• Cruiser Motorcycle: $143
• Scooter: $101

To get a more accurate estimate of how expensive your motorcycle insurance might be based on the type, make, and model of your motorcycle, the table below provides the average monthly rates. 

Opting for Full Coverage and Higher Limits Increases Costs 

When it comes to acquiring motorcycle insurance, purchasing full coverage with the highest limit within your budget is a great choice, but keep in mind that it will also increase motorcycle insurance premium substantially.  

Typically, full coverage motorcycle insurance includes a combination of both mandatory and optional types of motorcycle insurance coverage such as liability insurance, collision insurance, and comprehensive insurance.  

It can also include other motorcycle insurance coverage options such as uninsured/underinsured motorist coverage, gap insurance, custom motorcycle parts insurance, and more.  

On average a full coverage motorcycle insurance can cost you $33 per month, and $396 per year. But the actual cost depends on the amount of motorcycle insurance coverage you purchase, and the limit that you opt for. In general, it’s safe to conclude that the higher the number of coverages, and its limit, the more expensive your motorcycle insurance rate will be.  

So, ultimately, it depends on your budget, and especially your motorcycle insurance requirements.  

Read More: Can You Get Insurance on a Salvage Title Motorcycle?

Choosing a Lower Deductible Results in Higher Premiums

The biggest advantage of choosing a lower deductible is it significantly reduces the risk of out-of-pocket expenses. But the disadvantage is, it will make your motorcycle insurance premium costlier.  

But if the pros and cons are weighed, it’s always better to go for lower deductibles, this is especially because it increases the risk of financial burden after a motorcycle accident.  

When you’re purchasing your motorcycle insurance, you will be prompted to confirm your deductible, so based on your choice, your insurer will determine your motorcycle insurance premium.  

In a nutshell, the lower the deductible the higher the insurance premium, but with more financial protection.  

A Poor Credit Score Can Make Your Insurance More Expensive

Analyzing credit scores is another way for insurance companies to determine potential risk factors. Your credit score shows how frequently you pay off your credit bills or liabilities on time, especially before or within the deadline.  

If you have a poor credit score, this means you’re often late, or you haven’t cleared your dues in a while. In most states throughout the US, motorcycle insurance rates are also determined based on credit score except California, Hawaii, Massachusetts, and Michigan where it’s prohibited to determine insurance rates based on credit scores.  

A poor credit score can potentially increase your motorcycle insurance rate anywhere between 56% and 207%. So, if you have a poor credit score, that means you will have to pay a significantly higher amount for your motorcycle insurance, but only in states where insurance companies can use credit scores to determine insurance rates.

Single Riders Often Face Higher Premiums 

Your marital status can have a significant impact on your motorcycle insurance rate. If you’re single, you may not be eligible for bundle offers, and cheaper motorcycle insurance coverages designed for couples.  

When it comes to risk factors, many insurance companies perceive a married person to ride more responsibly, which means they’re most likely less prone to claiming insurance. According to the NIH, single people are twice as prone to getting into a traffic accident than married couples.  

In general, married couples also happen to file less motorcycle insurance claims compared to single riders, which is another reason why single riders face higher premiums.

Is Motorcycle Insurance Cheaper than Car insurance? 

If you compare motorcycle insurance with car insurance, then motorcycle insurance is definitely cheaper. So, does that mean motorcycle insurance is not expensive? Not necessarily, as it was discussed before, the price of an entry level car is at least $20,000 to $25,000 whereas you can buy an entry level motorcycle for about $4,000.  

Now, if you compare the price of sports motorcycles, you can purchase them for $20,000 to $25,000 but the average sedan in US is priced around $30,000 to $45,000. The price of sports cars can vary from $30,000 to $18 million dollars and above.  

So, with the price comparison alone, the cost of repairing and replacing an average sedan will exceed expensive motorcycles, and that’s one of the main reasons why motorcycle insurance is comparatively much cheaper than car insurance.

Moreover, as motorcycles are lightweight, they are less susceptible to damaging another vehicle or property which also makes liability, collision and comprehensive coverage more affordable for motorcycles, whereas cars can cause substantial damage whether it’s someone else property or your own.

If you compare the cost of minimum and full coverage insurance for motorcycles and cars, the difference is significant. On average, car insurance costs are nearly four times higher than motorcycle insurance. Here's a quick comparison.

• Average Motorcycle Insurance Coverage Rate: The cost of minimum motorcycle coverage is $156 per year and full coverage motorcycle insurance is $396 per year.
• Average Car Insurance Coverage Rate: The cost of minimum coverage car insurance is $678 per year, and full coverage car insurance is $2,458 per year.

In contrast, while motorcycle insurance is generally more affordable, the cost of insuring high-end motorcycles can still be very expensive.

Tips to Get Best Motorcycle Insurance Coverage Within Affordable Rates  

While motorcycle insurance can be expensive, it can also come at affordable rates. When it comes to motorcycle insurance rates, there are many factors involved, especially as the rates specifically vary based on individual requirements.  

If you want to get motorcycle insurance coverage within affordable rates, here are some tips you can follow to lower your premiums.  

• Determine Required Coverage Options: If you shop around, you will find tons of motorcycle insurance coverages, you don’t need them all. You only need specific types of motorcycle insurance coverage for adequate financial protection.  
• Ensure Including Safety Features: Make sure to get all the accessories to safeguard yourself from accidents, such as a good helmet, gloves, and goggles. To prevent theft, you can also install sound alarm systems, and efficient locks in your motorcycle.  
• Consider Usage Based Insurance: If you ride less than 7000 miles per year, you should consider usage-based insurance, this will help you save about 40% on annual premiums.
• Maintain a Clean Riding Record: Obey traffic rules and apply safe riding practices to avoid getting penalized for traffic violations, and more importantly to prevent accidents.  
• Get a Motorcycle Safety Course: By completing a motorcycle safety course, you will learn safe riding practices and acquire a certificate which demonstrates proactive steps to be a responsible rider.
• Join a Motorcycle Club: Some motorcycle clubs are entitled to lucrative discounts, and exclusive offers on motorcycle insurance premiums, so by joining a reputable motorcycle club you will be eligible to receive such exclusive rates.
• Seek Discount and Bundle Offers: Many insurers offer discounts, and bundle offers for experienced riders, and that’s why it’s important to ask whether your insurance company has such offers.  

How Expensive is Motorcycle Insurance: Key Takeaways

Whether motorcycle insurance is cheap, or expensive ultimately depends on your exact insurance requirements, choice of insurance company, coverage options, limits, and many other factors.  

So, considering all applicable factors, how expensive is motorcycle insurance? Well, here are some key takeaways.  

• Wide Cost Range: Minimum liability-only coverage averages $13/month ($156/year), while full coverage is about $33/month ($396/year). Rates can rise to $2,500+ annually based on personal factors.
• Cheaper Than Car Insurance: Motorcycle insurance is roughly four times less expensive than car insurance, which costs an average of $2,458/year for full coverage.
• High-Performance Bikes Increase Costs: Insuring a sports bike can cost upwards of $300/month, while scooters are much cheaper at around $100/month.
• Location Matters: Premiums vary significantly by state; for instance, California averages $1,812/year, while North Dakota is just $336/year.
• Younger Riders Pay More: Riders aged 16–20 can face premiums over $200/month due to higher perceived risk.
• Frequent Claims and Poor Credit Increases Premiums: Frequent insurance claims can increase premiums by 20–40%, and a poor credit score can raise costs by 56–207%.
• Custom Coverage Choices Impact Pricing: Opting for full coverage or lower deductibles provides better protection but raises premiums significantly.

Whether it’s a scooter, cruiser, or a sports motorcycle, it is important to stay insured. If you're concerned about the cost of motorcycle insurance, or looking for a rate that fits your budget, you can find an agent nearby. Or fill out the contact form to request a free, personalized quote today.

FAQ

Is motorcycle insurance expensive?

The cost of motorcycle insurance can be as low as $396 per year, and it can also be incredibly expensive costing over $2500 depending on the motorcycle that you own, along with your choice of coverage, and many other crucial factors.  

Is it cheaper to insure a motorcycle than a car? 

Generally, motorcycle insurance is cheaper than car insurance especially because motorcycles come with a much cheaper purchasing price compared to cars, which makes motorcycles cheaper to repair and replace. On average, car insurance costs 4 times more than motorcycle insurance. So, yes comparatively that makes motorcycle insurance a lot cheaper than car insurance.  

How much is the average cost of motorcycle insurance?

The average cost of minimum liability-only motorcycle insurance is $13 per month, and $156 per year. And the average cost of full coverage motorcycle insurance is $33 per month, and $396 per year.

Is motorcycle insurance more expensive without a license? 

You cannot get motorcycle insurance without a license. If you’re a new rider, you will either have to get a learner’s permit, or if your license has been suspended then you will have to apply for SR-22 or F-44 certificate. In case your license is suspended, then you will have to pay a much higher rate to obtain SR-22 or F-44 certificate which only covers minimum liability coverage. 

References

• Martin, S. (2024, November 19). Average cost of car insurance in December 2024. Bankrate. https://www.bankrate.com/insurance/car/average-cost-of-car-insurance/
• Statista. (2024, November 1). Monthly motorcycle insurance premium in the U.S. by state 2023. https://www.statista.com/statistics/826692/annual-motorbike-insurance-premium-by-state-usa/
• Motorcycles - Injury facts. (2024, April 10). Injury Facts. https://injuryfacts.nsc.org/motor-vehicle/road-users/motorcycles/
• Motorcycles - Data details - Injury facts. (2024, April 10). Injury Facts. https://injuryfacts.nsc.org/motor-vehicle/road-users/motorcycles/data-details/
• Statista. (2024, November 1). Monthly motorcycle insurance premium in the U.S. 2023, by age. https://www.statista.com/statistics/826718/annual-motorbike-insurance-premium-by-age-usa/
• Bishop, L. (2024, July 12). Average cost of motorcycle insurance (2024). ValuePenguin. https://www.valuepenguin.com/average-cost-of-motorcycle-insurance