The roads are drying up and excited riders are tuning up their bikes, ready to get out on the open road.
Before you rev up those engines, take a step back: Do you have the proper insurance?
Just like for automobiles, in Ontario and across Canada, insurance is mandatory for all motorcycle
There are four parts to the mandatory insurance coverage in Ontario.
1. Third Party Liability – this protects you if you injure another person or damage someone’s
2. Uninsured Automobile Coverage – this provides compensation to you and your family if you are
injured or killed by a hit-and-run driver or an uninsured driver.
3. Statutory Accident Benefits Coverage – this covers your care if you are injured in an accident
and pays death benefits to your family if you’re killed in an accident.
4. Direct Compensation for Property Damage coverage – this pays for the damage to your vehicle if
it was caused by another driver.
Driving without insurance means risking fines from anywhere between $5000 and $50,000, not to
mention the risk of injuring yourself or someone else and having to pay out of pocket for health care and
On top of the mandatory insurance, riders can increase their coverage to suit their needs and lifestyles.
Types of additional coverage include:
- Specified Perils coverage – covers against loss by things like fire, theft, and natural disasters.
- Comprehensive coverage – includes Specified Perils, falling and flying objects, missiles, and
- Collision and Upset coverage – covers your motorcycle if you are involved in a collision with an
object or if the bike tips over.
All perils coverage – combines Comprehensive with Collision and Upset coverage.
In addition, riders can increase the premiums on their Third Party Liability, Accident Benefits, and Direct
Compensation coverage for additional protection. Be sure to talk through your options with your broker.
You don’t want to be paying for something you don’t need, like increased death benefits if you don’t
have a spouse or any dependents.
How are your premiums calculated and how can you save money? It’s a common question and an important one.
Like auto insurance, many factors determine your premiums, including:
- Your riding experience
- Your age
- How far you plan to drive your bike
- The make, model, age, and value of your bike
- Where you live
- If you’re planning on having any passengers
- Your past claims history and driving record
- Whether you took a riding course
You can expect to pay less for your insurance if you have more than a year of riding experience, if you’ve
taken a certified motorcycle riding course, and if you have a good driving record.
The type of motorcycle you own (or plan to own) is a very important factor in deciding your insurance
premiums. Usually, a smaller, less expensive bike will be less expensive to insure in comparison to a
bigger bike. High performance “sport” bikes are often difficult to insure because of the skill level needed
to ride them. Any bikes labeled “rebuilt” or that have after-market frames or engines also raise red flags
with insurance companies. If you haven’t purchased a bike yet, be sure to talk to your insurance broker
before you buy. They can help you figure out how much the insurance will cost on the bike you’ve been
looking at, which will save you a headache down the road.
Other cost-saving things to consider when purchasing motorcycle insurance is that sometimes there are
special rates if you belong to a motorcycle association. In addition, bundling your motorcycle insurance
with your home and auto insurance can save you money as well as time if you ever have to submit
multiple claims (i.e., if you have a fire that damages both your house and your bike).
If you think canceling your motorcycle insurance policy once the snow starts to fall will save you money,
think again. Insurance premiums are often calculated based on year-long terms, and the rate of
motorcycle insurance already factors in the seasonal nature of motorcycle riding. Moreover, having the
insurance helps protect your vehicle while it’s in storage and allows you to take advantage of those
sunny, dry days of early spring and late fall.
There’s a lot to consider when it comes to insuring your motorcycle. Let us help you out. Give us a call at
1-888-354-6444 and we’ll guide you towards your proper coverage and find ways to save you money so
that you can drive that open road with a mind free from worry.