Why Has My Motorcycle Insurance Renewal Gone up?

It’s the anniversary of your motorcycle insurance, and suddenly, you have been stabbed with an increase. Plus, the insurance company has not informed you of the rise or why this increase has occurred.

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There are a few reasons why insurance companies increase rates. It is important to understand the following reasons for motorcycle insurance rate increases so that they can be avoided in the future.

Potential Reasons Behind the Premium Increment:

Annual Increase

Most insurance carriers increase their rates on an annual basis. This could happen at the start of every year or on the anniversary or renewal date of the insurance policy. The increase is normally calculated according to the loss-profit ratio experienced by the insurer in a single year.

In other words, if the ratio is more substantial on the loss side, a higher increase can be expected. However, if the ratio is in favor of a profit, don’t expect a reduction in the insurance premium or rate. Insurance companies rarely decrease the price, and the ratio is basically a prediction of how much the rate will be increased across the board.

The latest data available shows an average rate increase of 2.3% for the 2017 – 2018 period. This is the lowest increment for the last 8 years. Rises can, however, be as high as 7.5% for 2020, depending on the insurer.

Motor Vehicle Report

Speeding tickets and other traffic violations are permanently recorded in a motor vehicle report. Insurance companies can access these reports and are likely to increase premiums for drivers who have traffic violations. The higher the number of violations, the more significant the increase will be.

Note that:

Insurance companies consider driving violations to be a reflection of the driver. Bad drivers pose a higher risk of being in an accident and claiming, and this is the reason behind rate increases for motorcyclists with driving violations.

Increases are also higher for more severe infractions. For example, a higher insurance rate increase can be expected for reckless driving, DUI, or a license suspension than a speeding or parking ticket. It is recommended to keep a clean driving record to avoid these increases.


Increases will also be put into effect if the motorcycle was in an at-fault collision. At-fault means that the driver of the motorcycle that is covered by the insurance policy caused the accident either by their actions or through negligence.

Most insurance providers will institute an immediate rate increase after an at-fault collision. They may once again raise the premium upon renewal of the policy. Even if the accident did not result in an insurance claim, an increase could be expected.

Accidents happen, and it can be challenging to avoid this type of increase. As a motorcyclist, it is of absolute importance to avoid collisions at all costs.


If any claims were submitted during the year, the insurance provider might increase the rate upon renewal of the motorcycle insurance policy. Claims do not have to be collision related and can be for smaller issues such as fixing dents and scratches.

It is advisable not to claim from an insurance provider for the little things and instead use it to cover the cost of significant repairs or replacement of the motorcycle if it is written-off in a collision to avoid this rate increase.

Remember that:

The rate increase will be instituted over and above the deductible that will need to be paid for a claim to be paid out.

Factors Beyond Control

Certain factors result in insurance industry-related increases across the board that are out of the control of the insurance policyholder. These factors may include the following for 2020:

  • Increased distracted driving statistics
  • An increase in insurance fraud
  • Jump in the cost of medical care
  • An increase in crime in specific locations that result in a higher risk of theft, malicious damage, or other incidents to the insured motorcycle.

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