Which Motorcycles Have the Lowest Insurance Rates?

Much to their chagrin, motorcycle owners often experience higher rates of auto insurance. This is simply because insurance companies often perceive there to be a greater perceived risk of danger when riding them, as opposed to cars.

This isn’t just exclusively the case for top-of-the-line bikes, it also applies to all types of motorcycles too.

But as not all motorcycles are created equally, it is fair to say that some brands are cheaper to insure than others.

In this article we’ll outline some of the best ways to reduce the policy rate for your motorcycle insurance, as well as showcase five bikes that are amongst the cheapest to insure right now.

Lowest Insurance Rates

What kind of motorcycle insurance do you need?

If you want to ride a motorcycle in Australia, you are going to need to get Compulsory Third Party (CTP) insurance. Also known as Greenslip, it is, as its name suggests, mandatory for all riders in the country without exception.

In most of the country, it is included within your motorcycle registration – the exception being in ACT, NSW, and also QLD where you can choose your preferred insurer. 

CTP is the baseline level of insurance for motorcyclists and covers both your own individual liability, as well as that of anyone who causes injuries to others because of an accident whilst riding your bike.

It does not cover your medical costs if you suffer from injury and does not cover damage done to either your vehicle, or any other bike.

For this reason, you might want to get fully comprehensive insurance, as this will safeguard you from having to potentially fork out substantial sums of money to pay for issues relating to both.

At the very least you should get Third Party Liability, which will ensure you are protected against having to pay for any damage you cause to another vehicle. Third Party, Fire and Theft, offers even greater peace of mind and security for you too.

What is the average cost of motorcycle insurance coverage?

The cost of motorcycle insurance in Australia depends on several factors. This includes the following:

Your motorcycle. The vehicle you are insuring is an important determinant of how much your coverage is going to cost you. While factors like its make and model, date of manufacture, engine capacity and whether modifications have been made to it are taken into account, as a general rule of thumb, the pricier your vehicle is, the most it will cost you to ensure.

Level and type of cover. Similarly, the greater the amount of cover, the more your premiums will cost you.

Excess. When you make a claim, you must pay an initial amount towards it. This is known as the excess. This figure is a key component in determining the cost of your cover, because the higher your excess, the lower your premiums will be.

Your age. The older you are, the cheaper the cost of your insurance will be. Simply because insurance companies believe you are a more experienced and sensible motorcyclist.

Where you park. The location of where you park your motorcycle overnight can significantly reduce the cost of your premium. Especially if you park in a locked garage, as opposed to outside on the street.

Security. If your bike has a tracking device, immobiliser, or other notable security features, you may be given a slightly cheaper rate of insurance.

Rider experience. Similarly, if you have successfully completed a rider training course, you may also be given a discount.

Driving Record. If you have a clean driving record and have not had to make a claim in the last three to five years that will significantly reduce the insurance premium you will have to pay, as you will be seen as a riskier investment from the insurance companies.

To formulate your premiums other factors are also considered. These include whether you are married, if you have any other type of insurance with the company and where you live.

So how does this relate to a bona fide example?

Well according to a survey by Canstar, the average cost of comprehensive insurance for a 600cc bike averages out at about $4,309 for a 20-year-old. However, this premium reduces to around $2,056 for a 24-year-old, while a 30-year-old will pay only $1,209 for the same policy.

This rate reduces further if they live in South Australia or Western Australia and increases more for residents of New South Wales and Victoria.

How can I keep my premiums at a minimum?

Having understood what factors contribute to the cost of your premiums, here is what you can do to minimise them.

Ride a cheaper bike: Not everyone will want to do this. But the cheaper your motorcycle, the lower your premiums are going to be. This is because if your bike is not worth much it will cost less to replace it. Talking of which, if you are looking to downgrade your vehicle, or indeed swap out your bike for something better take a look at what you might find.

Store your bike in a secure location. If you can, try and secure your bike in a secure location like a garage. This will reduce your chances of the bike being stolen. Should you not a suitable place which you live, it is worth asking a friend, neighbour or family member if you can park in their garage. If you are unable to park inside a garage, there are some storage alternatives that might be worth exploring.

Insure multiple vehicles or items. You should receive a discount if you ensure multiple vehicles including other bikes, cars and boats with an insurer. As well as potentially house insurance, life insurance and other types of cover.

Complete a rider training course that is accredited by the state. This will result in reduced premiums as you will be considered a safer driver than others.

Name another rider on the policy. Often you can receive a discount if you name another rider on your policy and don’t allow anyone else to ride your vehicle.

So which bikes are the cheapest to insure?

As previously mentioned, the cheapest bikes are much less expensive to insure than top of the range models.

So which ones are they?

Well, there are quite a few on the market right now. But if you are looking to procure the lowest premiums these are some of the vehicles you should be riding.

1. Royal Enfield Classic

2. Honda Shadow Phantom

3. Harley-Davidson Softail Standard

4. Yamaha V-Star

5. Kawasaki Ninja

And who are the cheapest insurers?

Well, according to CANSTAR, who conducted a comprehensive survey of motorbike insurers, both Swann Insurance and Insure My Ride topped their list of providers who offered excellent value to their customers.

If you are not currently a customer of theirs, it might be worth your while to get a quote from them.

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