Yes, that's standard practice on any vehicle that's financed - the bank will require you to have full coverage on it so that if you destroy it...they get paid, otherwise they'd get hosed by people that wreck their vehicles and then decide they don't want to keep making payments on a vehicle that's sitting in a scrapyard somewhere. Would you?
So, when they asked you if the bike was financed and you presumably answered yes (and don't lie, they'll do a lien search and find out anyways...and that can cause a whole other "misrepresentation" ball of wax when it comes to insurance) they automatically quoted you for full coverage...as the bank would be requiring anyways.
That explains a lot with regards to the rate you're getting honestly - hate to have to say it, but in your scenario (age, experience, etc) they're probably rating you based on very high chance you'll have an accident on the bike, and of course that costs them a lot of money when they either have to fix it, or in the case of a total write off...reimburse the bank for it's loan value. I suspect if you ask for a (theoretical) quote on the bike for just the minimum legal requirements (assuming it's paid off and you don't need full coverage) you'll find it more inline with what you might have expected, but you'll have a baseline to go with once you do get it paid off. Is that realistic for you by the spring?
Others, like Joe above (those with more experience, older, etc) get this extra coverage for a not a lot of extra money...but you have too many things going against you at this point hence why it's a LOT more.
As for monthly vs yearly, some carriers allow both, some only do yearly. I'm with Riders Plus and the policy is with Aviva and I got monthly although there was a small monthly upcharge for the privilege, but that's the price you pay to effectively finance a 1 year policy on a monthly basis.
