What’s the difference between an auto insurance policy and a policy for a motorcycle?
Insurance premiums for a new or used motorcycle are typically $1,000 or less, according to the Insurance Information Institute of Canada (IIIC).
The new policy can typically cost up to $15,000.
“The biggest difference between the two types of policies is that the new policies are designed to be bought by someone who’s not necessarily going to be driving the motorcycle,” says James Koo, a senior insurance analyst with IIIC.
Koo says if you have a pre-existing condition or a prearranged trip to get to work, it’s more likely your policy will cost more than $1.
If you’re a young adult and you plan on buying a bike for yourself, the insurance is likely to cost between $2,000 and $3,000 depending on the policy.
While most of the insurance industry will focus on younger drivers, Koo says younger riders may need a higher premium than the older ones because they may need to buy a more expensive policy than a typical insured.
It’s also worth noting that not all new or old motorcycle policies are created equal, KOO says.
A new or an old policy might be less expensive than a policy that was purchased a few years ago and is being used by someone else, Koos says.
He adds that some policy policies may only be sold on the secondary market or for people who have insurance policies on their cars.
When it comes to the cost of a new policy, there are several factors to consider, including how much you’re paying per kilometre and the coverage you have, according in a report by the Insurance Institute of British Columbia (IIBC).
If you’re looking for an affordable motorcycle policy, the IIC suggests that you look at an existing policy with low deductibles, and if you’re considering purchasing a new motorcycle, you might be better off buying a policy from a company that has good policies that cover the basics like motorcycle maintenance and repairs, Kees van den Berg, a spokesman for IIBC, says in an email.
Read more about auto insurance:For more tips on getting your new or a used motorcycle insured, check out our guide to motorcycle insurance, or check out the IBC’s guide to the best motorcycle insurance.