How Much Does Motorcycle Insurance Cost?

Is motorcycle insurance expensive? Although motorcycle insurance is usually much cheaper than auto insurance, it can still be pricey. A younger motorcycle rider or someone who owns a sports bike will pay significantly more for insurance than other riders. MoneyGeek has calculated the average cost of motorcycle insurance nationally and by state and has put together a list of the companies that offer the most affordable coverage based on our quote data, allowing you to compare coverage and decide which plan is the best choice for you.

Motorcycle insurance rates vary from state to state, but it can be helpful to know the national average rates. For example, the average liability-only motorcycle insurance coverage costs $141 per year, but increasing your policy to full coverage raises that rate to $364 annually. Don’t forget that other factors impact your rates, too — an 18-year-old with full coverage motorcycle insurance has an average annual premium of $1,064, while a 40-year-old who owns a sports bike would pay an average of $3,924 per year for full coverage.

Keep in mind that local laws aren’t the only factor determining how much insurance you need to carry. Motorcycle riders making payments on their bike will likely be required by their lender to have full coverage insurance.

Average motorcycle insurance costs were determined by analyzing full coverage and liability-only insurance (50/100/25) quotes across all 50 states. The rider profile chosen was a 40-year-old with a good driving record riding a Honda Rebel 500. For young riders, an 18-year-old rider was selected. For sport bike coverage, we used a Honda CBR1000.

Each insurance company has its own proprietary system for setting its rates, which means the cost of motorcycle insurance can vary significantly from company to company. Getting multiple motorcycle insurance quotes is one of the fastest, easiest ways to make sure you have the lowest possible rates for your insurance policy.

For example, Progressive has the lowest liability-only policy at roughly $108 per year, while Harley-Davidson has the highest liability-only rates at about $166 per year. However, when it comes to full coverage, Progressive and Dairyland tie for the lowest annual rates at an average of $267, while Nationwide’s annual rates are the highest at around $658.

Each company sets its own rates, which means companies can sometimes have a difference of hundreds or even thousands of dollars in premiums each year. For example, the difference between full coverage premiums from Dairyland and Harley-Davidson is only roughly $35 per year, while the average difference between full coverage premiums for Progressive and Nationwide is an astounding $391.

The best motorcycle insurance companies provide excellent service and affordable coverage that meets your needs. After reviewing the average cost of policies, discounts and service ratings from J.D. Power for most major motorcycle providers, MoneyGeek recommends Progressive and Dairyland as the best overall motorcycle insurance companies.

Your location has a significant impact on your motorcycle insurance rates. Moving to a new state or even to a new ZIP code can change your insurance rates, sometimes by hundreds of dollars each year. This is because insurance rates are determined by several factors, including local and state-level laws and regulations. Your rates can also go up or down based on the number of accidents in a given ZIP code, the availability of street parking or even just the number of people living in the area.

The states with the highest rates for full coverage motorcycle insurance are New Jersey, Mississippi and Rhode Island. The weather in Mississippi allows people to ride motorcycles all year long, while New Jersey’s large, dense population means millions of people are all sharing the same roads, increasing the likelihood of an accident.

The states with the lowest rates for full coverage motorcycle insurance are Alaska, North Dakota and Montana. All three states have cold, snowy winters, limiting the amount of time motorcycle riders spend on the road each year. In addition, Montana and North Dakota are both in the Midwest, which generally has lower insurance rates because the populations in those states are smaller and more spread out, reducing the likelihood of an accident.

Motorcycle insurance for younger riders is significantly more expensive than coverage for more mature riders. In fact, it can sometimes be hard to find an insurance company that will cover riders under 18. Once a rider is 18, it becomes easier to find an insurance policy, but the cost is still very high. Because older riders tend to have more experience on the road, your motorcycle insurance costs will go down as you get older. For example, an average 16-year-old rider will pay 103% more for insurance than an average 40-year-old rider.

Insurance rates are significantly higher for sport bikes, and for good reason. Insurance claims for sport bikes are more common and more costly than claims for more traditional motorcycles, which means insurance companies will charge higher premiums to compensate. There are many reasons sport bikes are more expensive to insure, including:

With so many options for motorcycle insurance, it can be challenging to choose which policy is the right one for you. MoneyGeek has included some of the most common questions people have about motorcycle insurance to help you find the policy that best suits your needs.