
Motorcycle
Insurance: What you need to know
In
Canada, any motor vehicle on the road must have insurance. Insurance protects
the driver from damages caused by injury or property damage. Coverages range
but must offer protection against financial liability for the injury caused to
others and their property damage. Good policies will also protect the driver at
fault, should they incur any medical expenses or property damage of their own. Motorcycles
fall into the category of motor vehicles and therefore require their own
insurance to be on the road.
What is
motorcycle insurance?
Motorcycle
insurance protects you from financial liability in the event your motorcycle is
in an accident, lost, stolen, or damaged. Policies include liability insurance
should you be responsible for injuries or property damaged to someone else. In
Canada, motor vehicle insurance, including motorcycle insurance, must include
liability insurance. Motorcycle insurance is very similar to auto insurance,
with different costs and varying requirements.
Motorcycle
insurance can cover motorcycles, electric street bikes, mopeds, or Segways.
Rates depend on driving records, past claims, what is being insured, drivers
age, location, and experience. Each province and territory have different
requirements for what must be insured, and you should speak with an insurance
broker to navigate the right information.
What coverage
is included?
Standard
motorcycle insurance policies will include:
Third-Party Liability: Protection from the
financial cost of an accident you are at fault of. This insurance would pay for
any injuries or damages to property.
Accident Benefits: Provides coverage,
should you be injured in an accident, regardless of who is at fault.
Uninsured Automobile Coverage: Provides financial
coverage in the event of death or injury caused by a hit-and-run or someone
without insurance.
Optional
coverage, which can be added to most motorcycle insurance policies, includes:
Loss or Damage Coverage: The names of this coverage
vary by insurance company. They include All Perils, Collision, Comprehensive
and Specified Perils. These coverages offer increased protections in the event
of collision. The additional insurance also protects your motorcycle in the
event of a fire, natural disaster, weather, theft, and other unpredictable
risks.
How much is
motorcycle insurance in Ontario?
In
Ontario, the cost of motorcycle insurance is rising but is still cheaper than
car insurance. Prices will vary depending on driving records, past claims, what
is being insured, the cylinder capacity (CC) of the bike, drivers age, experience,
location, and current license class. With an M1 license, there is only one
company which provides coverage, Facility Association. If you have an M1
license, are under 21, and have a bike with less than 100CC, you can expect to
pay roughly $1,450 per year for coverage. If you are the same age with a M1
license and a bike with over 751CC, you are looking at annual coverage of
$11,165. These prices drop significantly as you age and when you get the M2 and
M license.
More
companies offer coverage when you get your M2 license. At this point, you are
entering a competitive market with lower rates. Completing an approved rider
training program will also lower your rate. Below are the average motorcycle
insurance costs in Ontario based on ages.
Age Range |
20-24 |
25-29 |
30-34 |
35-39 |
40+ |
Average Annual Rate |
$2262 |
$1853 |
$1454 |
$1316 |
$1172 |
The
cylinder capacity (CC) capacity of the motorcycle being insured will be the other
largest factor in final costs of your motorcycle. The lower the CC, the cheaper
your annual rate.
Ontario
is a competitive insurance market with multiple brokers, agents, and insurance
companies. Speak to a few agents and get quotes from multiple companies.
Compare coverages and go with what suits your needs and budget best. Combining
home or other auto insurance may give you a lower rate.
Who has the
cheapest motorcycle insurance in Ontario?
Most
insurance companies do not post fixed prices online. There are a variety of
variables they consider in what your annual rate will be. To find the best deal
in Ontario for your needs and budget, consider working with an insurance
broker. Insurance brokers will have access to the prices of many insurance
companies and can consider all the variables. Your age, driving record, type of
motorcycle, and license status go far in determining your final rate. Ontario
is an expensive but competitive insurance market. For standard policies you
will have a wide range of options to choose from. While Ontario is not as cheap
as Alberta for auto insurance, it has a huge competitive edge over BC who
legally requires consumers to use the crown company ICBC for their standard
insurance policies. Consider the policy and coverages you need to find the best
rates. Talk to an insurance agent for more information on the specific rates of
each company in Ontario.
How much is
motorcycle insurance in BC?
British
Columbia has the Insurance Corporation of British Columbia (ICBC). This is a
crown corporation which is the sole provider of standard motor vehicle
insurance policies in BC. To get your motorcycle insured in this province, you
must use ICBC. This creates more expensive policies on average. Exact prices
are not available without contacting ICBC, but the prices for insurance in BC
are the most expensive in Canada. Significantly more expensive than policies
available in neighbouring Alberta.
Do I need a
motorcycle license to get insurance?
Legally,
you can get motorcycle insurance without a license. However, you would not be
able to legally drive the motorcycle. The type of insurance you would likely be
buying is to insure the motorcycle does not get stolen or damaged while you are
storing it and awaiting your license to legally ride it. Insurance prices vary
widely depending on the type of license you have. If you only have a learner’s
permit, many companies will not insure you. In Ontario, there is only one
company that will insure M1 drivers, and they charge a huge premium for this
insurance. The further along you are in your licensing for motorcycles, the cheaper
your insurance policies will be and the more freedom you will have to enjoy
your motorcycle.
Author Bio

Mohamed Konate is a personal finance expert, blogger, and marketing consultant based out of Toronto. He is a former financial services professional who worked for many years at major Canadian financial institutions where he managed the marketing strategy around various financial products ranging from credit cards to lines of credit. Mohamed is passionate about personal finance and holds a Bachelor in Business Administration from the University of Quebec (Montreal) and a Master in International Business from the University of Sherbrooke (Quebec).He is also the author of the Canadian Credit Card Guidebook.
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