Before You Ride: 5 Tips to Understand Motorcycle Insurance

1. Civil liability coverage is mandatory

Like car insurance, mandatory motorcycle insurance coverage differs from province to province in Canada. You’ll need to know what’s required by law based on where you live. It’s important to have the mandatory insurance for your motorcycle’s make and model.

In Quebec, the Automobile Insurance Act requires motorcycle owners to have at least $50,000 of civil liability coverage. In most cases, the civil liability offered by insurers is $1,000,000 or $2,000,000. Insurance companies recommend that you opt for $2,000,000 in coverage if you plan to take your motorcycle to the United States.

Wherever you live and ride, civil liability coverage is generally included in your insurance. It covers damage unintentionally caused to other people, for which you would be held responsible in the event of a motorcycle accident. In industry jargon, you might hear it called “one-way” coverage.

2. Essential coverage against the risk of collision and rollover

Insuring a motorcycle is no more complicated than insuring a car. You’ll also need coverage to protect your motorcycle in case of an at-fault accident. If your motorcycle is new, whether purchased or leased, and has a loan attached to it, you must have “two-way” insurance.

By adding “Collision and upset” coverage, you'll be insured in the event of an at-fault accident, and you’ll also be covered for damage to your motorcycle. In short, "two-way" coverage is for damage you may cause to others as well as damage to your own vehicle.

You can also include coverage for more specific risks like fire, theft, vandalism and glass breakage in your motorcycle insurance policy.

3. Upgrade your motorcycle insurance with riders

As with other property and casualty insurance policies, you can add riders to your motorcycle insurance to upgrade your coverage. It’s an addition to your coverage, not an extra passenger! Although they increase the annual premium, they can be worth their weight in gold in the event of a claim.

So, when you get a quote, ask for different premium and coverage scenarios so you can make an informed decision. You can also look into a “replacement value” rider, available under certain conditions, which protects you against the depreciation of the value of your bike for a maximum of four years.

4. Bundle your insurance policies and save

When you choose to insure your motorcycle or any other leisure vehicle, you are under no obligation to insure other vehicles under the same policy. However, it might be worth considering.

Bundling your home and car insurance policies is a smart way to save money. Try comparing the cost of your current policies with the price you’d pay if you moved all your policies to the same company. There might be a significant discount!

5. A hobby that can get expensive

The cost of motorcycle insurance varies depending on the kind of coverage you choose. There are also a number of other factors that can affect your annual premium, including your vehicle’s make, model, engine and year. Other include your driving experience and where you live (and where you store your motorcycle during the winter).

Motorcycle and scooter enthusiasts are always dreaming of all the short and long road trips they’d like to take once summer arrives. After all, what’s better than exploring Canada and seeing all its beautiful scenery on two wheels?

However, if you’re just starting out, you’ll quickly find out how much the costs can add up for this hobby. That’s why it’s so important to be well informed when you choose the motorcycle model you want to buy.

For example, certain models are in a higher risk category for accidents, which often requires owners to pay a higher insurance premium.

Whatever you choose, it’s time to start making your summer plans. Check out motorcycling websites and read up on the latest ideas, discounts and practical information.