NY motorcycle insurance is much the same as car insurance in that it provides property and liability coverage up to the limits carried on the policy. As to how much it costs depends on a number of factors including specific coverages carried along with settlement type and limits of liability protection held.
In addition to coverages, the following criteria have an impact on the amount of your NY motorcycle insurance premium.
Individual’s Credit Rating: Almost every insurance company will check your credit. Some statistics show that poor credit can more than double the rate as compared to someone with good credit. Those holding excellent credit often receive rates that are 10% to 25% lower than those with just average credit. Keep in mind that insurance company credit checks are not like credit pulls done by a mortgage lender or car loan company and will not affect your credit score.
Driver’s Age: Younger drivers do pose a greater risk of loss to insurers and hence increase the premium for young drivers. Once the insured turns 25 they can expect their rates to start dropping by as much as 20%. For instance, an 18 year old might pay $1,100 per year whereas a 40 year old could pay only $375 per year, both with good credit and driving records and similar motorcycles in the same location.
Individual’s Driving Record: Those having poor driving records including at-fault accidents and moving violation tickets can expect to pay significantly more in premium as compared to drivers with a clean driving record. Most NY insurers drop prior accidents and moving violation tickets after 39 months for rating purposes. So it’s a good idea to keep tabs on when these premium driving incidents drop from your record.
Certified Safety Courses: Most motorcycle insurance companies offer significant discounts to those who complete a certified motorcycle safety course. Plus there’s the added benefit that you can sharpen or refresh your riding skills.
Driver’s Location: Location can play a significant factor in your motorcycle insurance rate. This is due to mainly to the number of accidents in any given zip, the necessity to use street parking or simply the density or number of people living in that area.
Type of Motorcycle Being Insured: Insurance companies use a centralized database of statistics formed from reporting by most insurers. Insurers evaluate any specific motorcycle for crash statistics, theft ratings, repair cost, engine size, along with the value of the motorcycle combining to form a major rating factor for that particular make and model.
Settlement Type Affects Cost Of Motorcycle Insurance
If you choose to carry comprehensive and collision coverage on your motorcycle, there are 3 types of settlement options offered by insurers, although some offer Actual Cash Value as the only option
Actual Cash Value: Most insurers office this option. Much like car insurance, after a total loss settlement is based on depreciated value less the deductible. Most affordable option.
Agreed Upon Value: This is sometimes termed as Stated Value and is a settlement type where you agree with the insurer on the value of your motorcycle when the policy is issued. In the event you incur a total loss, settlement is made for the amount agreed upon in the policy. Not all insurers offer this option and it’s normally more expensive than Actual Cash Value.
Replacement Cost Value (RCV): RCV is normally only offered for newer motorcycles usually up to 1 year old, but sometimes allowed up to 3 years old. In the event of a total loss the motorcycle will be replaced with a comparable bike and no depreciation is applied. Fewer companies offer this option and it can be the most expensive of the settlement options stated.
If you have any questions regarding motorcycle, auto, home and business insurance options, please contact us, we’re always glad to help. The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.