TK4
Well-known member
From the Mitchell and Whale website:
Motorcycle insurance is so expensive because of the cost to fix your body if you are in an accident.
In Ontario, both motorcycle insurance and auto insurance are regulated by the government. With both of these insurance policies, the insurance companies are mandated by law to provide accident benefits to provide you with medical care if you're hurt in an accident.
The accident benefits portion of the 25 year old with a $3500 M1 policy is over $2100; with collision, the insurance for the bike only being $246 of the total premium. As Ontario is a no-fault insurance province, it is your own insurance company that has to pay the health care system to fix you, not the insurance company of the car that hit you, EVEN IF YOU ARE NOT AT FAULT.
The amount you pay for any type of insurance is primarily based on your exposure to risk. This is one of the primary reasons that motorcycle is more expensive than car insurance: higher probable risk–of injury. Whether you ride a motorcycle or drive a car, the regulations regarding your coverage are the same. Both motorcycle and auto policies include minimum coverages that are required by law. Insurance companies don’t have a choice but to include them, and they aren’t legally permitted to offer an insurance policy that doesn’t include these minimum coverages.
So, if I may sum up (others will correct me I'm sure), what's really happening here is that motorcyclists are not buying insurance to protect the other guy from us but to protect ourselves from the other guy. It seems to have much less to do with potential property damage payout than I'd thought. The likelihood of a cager suffering physical injury from a car/motorcycle or car/car altercation is significantly lower, so they pay significantly lower premiums in proportion to vehicular value, time used, distance travelled and who's at fault. Motorcyclists and their insurers, through no-fault, have been put in a high risk for payout category not for the damage they might cause but for the damage they may suffer.
What's wrong with this picture ?
Motorcycle insurance is so expensive because of the cost to fix your body if you are in an accident.
In Ontario, both motorcycle insurance and auto insurance are regulated by the government. With both of these insurance policies, the insurance companies are mandated by law to provide accident benefits to provide you with medical care if you're hurt in an accident.
The accident benefits portion of the 25 year old with a $3500 M1 policy is over $2100; with collision, the insurance for the bike only being $246 of the total premium. As Ontario is a no-fault insurance province, it is your own insurance company that has to pay the health care system to fix you, not the insurance company of the car that hit you, EVEN IF YOU ARE NOT AT FAULT.
The amount you pay for any type of insurance is primarily based on your exposure to risk. This is one of the primary reasons that motorcycle is more expensive than car insurance: higher probable risk–of injury. Whether you ride a motorcycle or drive a car, the regulations regarding your coverage are the same. Both motorcycle and auto policies include minimum coverages that are required by law. Insurance companies don’t have a choice but to include them, and they aren’t legally permitted to offer an insurance policy that doesn’t include these minimum coverages.
So, if I may sum up (others will correct me I'm sure), what's really happening here is that motorcyclists are not buying insurance to protect the other guy from us but to protect ourselves from the other guy. It seems to have much less to do with potential property damage payout than I'd thought. The likelihood of a cager suffering physical injury from a car/motorcycle or car/car altercation is significantly lower, so they pay significantly lower premiums in proportion to vehicular value, time used, distance travelled and who's at fault. Motorcyclists and their insurers, through no-fault, have been put in a high risk for payout category not for the damage they might cause but for the damage they may suffer.
What's wrong with this picture ?
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