5 Secrets Insurance Companies Don’t Want You to Know About Motorcycle Insurance

Motorcycle insurance is a crucial part of being a responsible rider, but for many, it can feel like a maze of confusing terms, hidden fees, and conflicting advice. Whether you’re a seasoned rider or a new motorcyclist, navigating the world of insurance can be overwhelming. You want the right coverage to protect yourself, your bike, and others on the road—but you also want to avoid overpaying or getting stuck with a policy that doesn’t actually meet your needs.

The truth is, many motorcycle insurance policies are packed with nuances and “fine print” that insurance companies would rather you didn’t read too closely. And while agents and brokers are there to help, they may not always point out every opportunity for you to save or adjust your coverage. It’s easy to fall into the trap of simply renewing your policy year after year without questioning whether it’s still the best fit.

This blog is here to change that. We’re about to reveal five lesser-known truths that the insurance companies don’t necessarily want you to know—insider secrets that can help you save money, understand your policy better, and avoid some of the most common pitfalls that riders face. By the end of this post, you’ll be in a better position to make informed decisions about your motorcycle insurance, ensuring you get the right coverage at the right price.

1. Insurance Companies Profit from Your Inaction: Understanding Non-Use and Automatic Renewals

Insurance companies often rely on policyholders’ tendency to ignore their policies after purchase. Many riders sign up for motorcycle insurance and then forget about it until renewal time rolls around. Unfortunately, this passive approach can cost you more than you think. Without regular reviews, your coverage might become outdated or no longer necessary, leaving you overpaying for coverage you don’t need.
One of the most common tactics insurance companies use is automatic renewal. They set up your policy to renew automatically, and unless you actively make changes, you’re stuck with the same coverage—even if it no longer fits your needs. For example, if you’ve stopped riding for the winter or rarely use your bike, you may still be paying for comprehensive or collision coverage that isn’t necessary. Meanwhile, the insurance company profits from the lack of engagement.

The best way to avoid overpaying is to review your policy annually. Take a close look at your coverage to ensure it’s still the right fit. If you don’t ride as much as you used to, consider reducing or removing unnecessary coverage, like collision or comprehensive. Compare rates with other insurers and make sure your premium reflects your current needs, not your past ones.

Many insurance companies won’t proactively inform you about changes that could lower your premiums or adjust your coverage. It’s up to you to ask for these updates. Don’t assume your current policy is the best option—ask your insurer about new discounts or more appropriate coverage for your current situation.

2. You Might Be Overpaying for Coverage You Don’t Need

Many riders end up purchasing coverage options that don’t suit their needs, such as comprehensive or collision coverage on older bikes or bikes with a low market value. Insurance agents often push for these types of policies, believing they are a “one-size-fits-all” solution, or they bundle them with other coverages, making it easy to overlook the unnecessary costs.

Upselling tactics and bundled coverage options can make it tempting to get more than you actually need. You might find yourself paying for features like roadside assistance, comprehensive, or collision insurance that don’t benefit you if your bike is an older model or has minimal value. Additionally, some insurers use misleading comparisons that make more expensive coverage seem like the better option.
Take a closer look at your bike’s value and your riding habits. If your motorcycle is older or only worth a few thousand dollars, dropping comprehensive or collision coverage could save you a significant amount of money. For example, if you don’t ride frequently or keep your bike in storage for long periods, you may be able to adjust your policy to reflect that.

Don’t automatically assume you need full coverage. Understand your bike’s actual market value and how much risk you’re comfortable taking on yourself. Sometimes, opting for liability-only coverage (especially on older bikes) can save you hundreds, while still meeting state insurance requirements.

3. Your Credit Score Affects Your Motorcycle Insurance Premiums More Than You Think

It’s a little-known fact, but many insurance companies use your credit score as an indicator of risk. Insurers believe that those with lower credit scores are more likely to file claims, which is why your score could directly impact your motorcycle insurance premiums. In fact, some studies have shown that people with lower credit scores can end up paying significantly higher premiums, even if their riding history is clean.

If your credit score isn’t stellar, your insurance premiums may be higher than those of a rider with a good score, even if both have similar riding records. While not all states allow insurance companies to use credit scores as a factor in determining rates, many do, so it’s important to be aware of this connection.

If your credit score is a factor in determining your premiums, it may be worth taking steps to improve it. Paying off debt, ensuring timely payments on credit accounts, and monitoring your credit report can gradually help lower your rates. Even small improvements to your score can lead to better insurance premiums over time.

Check to see if your state prohibits the use of credit scores in setting insurance rates. In some states, such as California and Hawaii, insurers cannot factor in credit history when determining your premiums, so it’s worth knowing if you’re covered by these laws.

4. The ‘Low’ Deductible Could Cost You More in the Long Run

When shopping for motorcycle insurance, many riders opt for the lowest deductible possible, hoping that it will reduce their out-of-pocket costs in case of an accident. However, what you may not realize is that a lower deductible often leads to significantly higher monthly premiums. While you might pay less out-of-pocket when you make a claim, your insurer will charge you more on a monthly basis for the privilege.

Choosing a low deductible sounds good in theory, but it comes at a cost. For example, if you select a $250 deductible, your insurer may raise your premium by a substantial amount, sometimes hundreds of dollars over the course of the year. Meanwhile, if you chose a higher deductible, like $1,000, your monthly premium would likely be much lower, saving you money in the long term.

Evaluate your budget and risk tolerance carefully. If you can comfortably afford a higher deductible, consider raising it to lower your monthly premiums. Just be sure to choose an amount that you could pay out of pocket if you needed to make a claim, so you’re not left with financial stress in the event of an accident.

Consider increasing your deductible if you rarely file claims or if you have the financial cushion to cover the higher out-of-pocket cost. The savings on your monthly premiums could outweigh the occasional need to pay a larger deductible.

5. Discounts Are Often Hidden – But You Might Qualify for More

One of the biggest secrets to saving on motorcycle insurance is that many insurers don’t openly advertise all the discounts they offer. You might qualify for discounts based on your riding habits, the safety features on your bike, or even your personal background, but these savings aren’t always front and center in a policy quote.

Common discounts to look for:

• Safe rider discounts: Many insurers offer discounts to riders with a clean driving record or those who have completed a motorcycle safety course.
• Low-mileage discounts: If you don’t ride your bike frequently, insurers may offer a discount for fewer miles driven.
• Multi-policy discounts: Bundling your motorcycle insurance with your car or home insurance can often lead to significant savings.
• Safety gear discounts: Installing anti-theft devices, using protective gear, or equipping your bike with additional safety features could all earn you discounts.

Always ask your insurer about any available discounts, even if they’re not listed on their website. Make sure you’re getting credit for any safety courses, low-mileage riding habits, or anti-theft devices on your bike. Sometimes these discounts can add up to big savings.

Don’t assume that discounts are only for new riders or those with perfect records. Many insurers have discounts for experienced riders who maintain safe riding habits or take extra steps to secure their bikes. Always ask about these hidden discounts before committing to a policy.

Conclusion

Navigating motorcycle insurance doesn’t have to be a guessing game, and with the right knowledge, you can ensure that you’re getting the best coverage at the best price. Here’s a quick recap of the five key secrets that can help you save money and avoid unnecessary expenses:

1. Insurance companies profit from your inaction: Regularly review your policy to avoid paying for outdated or unnecessary coverage. Don’t just let automatic renewals roll over—take control and make sure your coverage fits your current needs.
2. You might be overpaying for coverage you don’t need: Be mindful of upselling tactics and bundled policies that don’t align with your bike’s value or your riding habits. Tailor your coverage to fit your actual needs.
3. Your credit score affects your premiums: If your credit score isn’t great, it could be driving up your rates. Work on improving your credit, and be aware of state laws that limit how insurers can use your credit score.
4. The ‘low’ deductible could cost you more in the long run: While it might seem tempting to choose a low deductible, a higher deductible could save you money on your premiums. Find the right balance that works for your budget.
5. Discounts are often hidden – but you might qualify for more: Insurance companies rarely advertise all available discounts. Ask about safe rider discounts, low-mileage discounts, multi-policy savings, and any other opportunities to reduce your rates.

By taking a more proactive approach to your motorcycle insurance, you can make sure that you’re not overpaying and that your policy is truly serving your needs. Don’t settle for the default options or blindly accept renewal terms—review your policy regularly, ask the right questions, and shop around to find the best deals.