Of course, nobody is ever likely to shed too many tears about the tough life of the average insurance company. Even so, it may be worth bearing in mind a few facts about their view of life – it may help you to benefit through more cost-attractive and suitable motorbike insurance solutions.
Insurers and risk
The insurance industry, including motorbike insurance, is primarily about risk.
When you pay your annual motorcycle insurance premium, you are effectively paying the insurer to share the risks inherent in your use of your bike.
Insurers will typically be willing to do so, as it is, after all, why they are in business.
Of course, they require you to pay them for the risk they are taking and that means they have to decide just how much risk you and your bike constitutes to them.
Once they understand that, they may be able to put a price on that risk and that becomes what is known as your insurance premium.
The effect on your pocket
Clearly, the higher risk you are perceived to be to a provider of motorbike insurance, then typically the less cost-attractive your premium may be.
If this sounds to be glaringly obvious, what may be less immediately apparent is that the reverse of this may also typically be true – i.e. the lower risk you are seen to be, then the more cost-attractive your premium may be.
What this means is simple – any steps you are able to take that result in a perceived reduction of risk, may typically result in more financially interesting premiums.
If you are keen to drive down the cost of your motorcycle insurance, you may wish to think about some of the following:
- downsizing your motorbike to a more modest machine;
- cutting down on the number of miles you ride each year;
- avoid parking your bike on the public highway and if possible, garage it or park it on your driveway instead;
- fit some of the numerous additional security features that are now available in the marketplace;
- accept a higher voluntary excess on your policy (this is the amount of money that you undertake to contribute as the first part of any future claim);
- improve your experience levels by passing an advanced motorcycle rider’s test.
Using these sorts of techniques may never make you feel that your motorbike insurance can be described as being cheap but it may make it that little bit more affordable.