Motorcycle Insurance: What you need to know

Published by Mohamed Konate | Updated Aug 26, 2023

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






Average Annual Rate






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

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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