If you operate a motorcycle and have an accident, will your rates increase after the first claim? Motorcycle owners will often ask that question even before an accident occurs. The answer is a complex one as it depends on several factors.
What can be said is that rate increases often occur when the motorcycle driver is at fault, or the insurance is no-fault. But that is not always the case as other factors, such as who is at fault, the accident’s severity, and what must be paid in the claim, are properly accounted for.
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Such questions are often boiled down to whether a single claim can cause your insurance rates to go up.
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Will My Insurance Go Up After One Claim?
Not necessarily. Whether rates go up depends on the following factors.
- Type of Accident
- Type of Motorcycle
- Who is at Fault?
- Type of Insurance Policy
A fender-bender, an accident that causes minor damage, and no claim filed will probably not cause the insurance rates to climb. This is especially true if the motorcycle driver is not at fault.
Fender benders are usually minor dents or dings to the motorcycle that can be repaired cheaply or not repaired if they do not interfere with the bike’s functioning.
If you are not at fault and the insurance company for the other driver pays for all repairs and damages, your rates will not go up under normal circumstances. After all, if you do not file a claim, your rates should stay the same even if you have been involved in several accidents.
Just like vehicles, the type of motorcycle you drive may affect whether the rates go up on your insurance policy. This is because insurance companies use statistics to determine the likelihood of an accident.
Certain types of motorcycles are more likely than others to be involved in an accident. This means if you are driving a bike considered high risk by the insurance company and you get into an accident, your rates may go up.
Some insurance policies will not boost the rates after the first accident. This is a selling point for some insurance companies to attract your business. Such policies are generally reserved for those with good driving records who have not been involved in an accident in several years.
How Much Does Insurance Go Up After an Accident on a Motorcycle?
No figure shows how much motorcycle insurance rates will increase after an accident. The Insurance Services Office reports an average of 20% up to 40% when rates go up after an accident.
A severe or dangerous accident, such as when the motorcycle driver is driving at high speeds or recklessly when the accident occurs, may drive the rates up to 100% higher or more.
This assumes that your insurance rates go up. It is possible that your rates will not go up. Again, this depends on several factors. But if you file a claim, then it is likely that your rates will go up.
Note that:
The exception is that your policy has a clause that prevents the rates from going up after the first accident. However, once the first accident is out of the way, the rates will likely go up if a second accident occurs. This is especially true if the second accident occurs less than six months later.
Other Causes for Motorcycle Insurance Rates Rising
In addition to accidents, other events can cause your rates to rise. Knowing what they are can help you avoid unnecessary impacts on your insurance rates.
- Speeding or Reckless Driving
- Vandalism
- Theft
- Other Non-Moving Violations
Keep in mind that insurance rates are based on statistics. This means your driving record combined with the type of motorcycle you drive and what violations occur, may raise your rates.
Speeding, reckless driving, and other moving violations will likely raise your rates. This is because such moving violations put you at greater risk of an accident.
Vandalism, parking tickets, and theft fall under non-moving violations. Such violations may or may not raise your rates. This depends on how many non-moving violations you have accumulated. One or two tickets for non-moving violations over several years probably will not do anything.
However, if you accumulate several non-moving violations, this may affect your insurance rates. This will depend on the insurance company, type of policy, and other factors.
Purchasing a new motorcycle with a statistical history of more accidents will likely cause your rates to increase. It is best to check with your insurance agent first to see if a particular type or motorcycle model may cause your rates to rise.
How Much Does Your Insurance Go Up After Filing a Claim?
Again, this depends on several factors that are unique to you. Your insurance company, the type of accident that occurred, and the kind of policy you hold largely determine whether the rates go up.
A fender bender is not your fault, especially if no claim is filed will probably not affect your rates.
However, a severe accident in which you were at fault, especially if you were speeding or driving recklessly, will cause your rates to go up. The exception is whether your insurance policy has a first-accident clause that does not cause the rates to rise.
Check with your insurance agent, review your policy, and determine if your rates will likely rise in the next renewal after the first accident. You may be able to change your policy that prevents the first accident from raising your rates.
However, such changes to your policy may cause your rates to climb. Although, the rise is generally not in the 20% to 40% category compared to being in an accident. Plus, you can take steps to bring your rates down today.
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