Reduce the hidden costs of your Motorcycle Insurance policy

Motorbike insurance is expensive enough without paying an extra for it. Sometimes your insurance policy has hidden costs in it that you may not have noticed. Pull it out and take a good long look at it. What you see might surprise you!

Over-insured?

It is all too easy to over-insure a motorcycle. When a motorcycle is first insured, you will probably be insuring it for its full value. But over the years its value will decrease. Make sure you inform your motorcycle insurance company of its decrease in value. Your premiums will be lower for a lower value motorcycle.

Retail or Trade?

There are two values associated with your motorcycle: the retail value and the trade value. The retail value is the price a dealer would sell your motorcycle for; the trade value is what he would pay. The difference between these two sums could be as much as 10 % of the trade value. Most policies are for the trade value or market value (a value in between the trade and retail value). The higher the value your bike is insured for, the higher your premium.

The excess is too low

The excess it the amount you pay in the event of a claim. It could be 5% or more of the insured value of your motorcycle. If you can afford to pay more for your excess, your premiums will be correspondingly lower. A lower excess is more important in determining your premium than a lower insured value to your insurance company. The excess is always paid first, whereas the maximum insured value is only paid (minus the excess) if your motorcycle is a total write-off.

Reduction for Security Factors?

Do you keep your motorcycle in a locked garage? If so, then make sure that fact is reflected in your policy. It will definitely earn you lower rates. There are many reductions you insurance company will give you if they know about them. Immobilizers and alarms are a good example. So take advantage of any reductions you can.

Is the mileage accurate?

Vehicle use changes over time. If when you purchased your policy you were commuting to the other side of town, and now you only have to walk a few blocks to work, it's time to let your insurance company know. Or maybe you used to use your motorcycle for work, but now you have a desk job. Update your policy with this new information, and watch your rates drop! Keeping your premiums down is not as hard as you think. You should review all your insurance policies yearly to make sure they are still on track with your lifestyle, your needs, and your property's value.