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Mackay Insurance Blog

 

March 2018

Motorcycle Insurance: Is Minimum Coverage Enough?

motorcycle front

Here in Ontario, if you ride a motorcycle you are required to have a valid motorcycle licence and carry motorcycle insurance. The same holds true if you drive a limited-speed motorcycle or moped.

Of course, just as with automobiles, the type of motorcycle you ride can impact what you pay for motorcycle insurance. So can your age, gender, rider training, driving record, driving patterns, and address.

No one loves paying for their insurance, and it can feel like you are spending money for something you never even use! To save on premiums, some people drop down to the bare minimum coverage. But if you do need to use your insurance, will the minimum motorcycle insurance coverage protect you adequately?

On the other hand, are you paying for coverage you do not need? Is there any way to drop or lower some coverage so you can use those savings to pay for coverage that is more important to have?

Read on to find out the answers to these timely questions about motorcycle insurance!

Minimum Required Motorcycle Coverage in Ontario

Each province is permitted to set its own minimum requirements for vehicle insurance. But in some areas of coverage, the minimum required coverage is absolutely not sufficient.

In Ontario, the current minimum required motorcycle insurance coverage is as follows:

Liability

Third-party liability coverage protects you if you are sued because you are involved in a motorcycle incident where another person's property is damaged or they are injured or killed. The legal minimum coverage of $200,000 is not adequate protection.

Accident Benefits

Statutory no-fault accident benefits provide protection if you are injured in a motorcycle accident. Coverage includes:

  • Income replacement of up to $400 per week.

  • Medical, rehabilitation, and attendant care coverage up to a combined total of $65,000.

  • Life insurance (if death results from a car or motorcycle accident) of $10,000 to a surviving dependent and $25,000 to a surviving spouse.

  • And other benefits

Direct Compensation for Property Damage

Called DCPD, this benefit protects you if you are involved in a motorcycle incident in which the other driver is at fault and that other driver has Ontario insurance.

Uninsured Motorist

This benefit protects you if you are injured in a motorcycle accident and the responsible other driver is not identified or not insured.

Should You Add Optional Coverage to These Basic Motorcycle Coverages?

Even a casual review of the minimum motorcycle coverage required for Ontario riders highlights areas where you need additional protection.

Every motorcycle owner should have increased coverage:

  1. Increase liability coverage from $200,000 to a minimum of $1 million.

  2. Review ALL available optional Accident Benefits coverages, and at a minimum increase the limit for Medical, Rehabilitation, and Attendant Care coverage.

Other optional coverages are personal decisions based on your specific circumstances. If you are a single person riding an older motorcycle, your coverage might look quite different than if you have young children at home and ride a $30,000 touring motorcycle.

Finding an insurance broker you trust is a key component of the selection process. You want to be able to talk openly about your situation without feeling pressured to purchase a specific level of coverage that you don't really need.

Ways to Save on Motorcycle Insurance Premiums

Many first-time riders pay more than they need to for motorcycle insurance.

Just as with auto insurance, driver training, bundling, the choice of bike, and how you pay, your other memberships and certain safety precautions can help you pay less for the same amount of insurance coverage.

1. Take a rider safety course

If you are a first-time motorcycle owner, a rider safety course is strongly recommended. There are courses that provide helpful safety training, and also a bike to ride for the training course and to get your M2 license. Get your M2 license before you rush out and buy a motorcycle that you will find it difficult or impossible to insure.

2. Bundle your insurance

If you already have auto insurance or home insurance, ask if you can get a discount by bundling in motorcycle insurance. Some insurance companies provide preferred prices on motorcycle insurance, but write motorcycles only if they also write the person’s car insurance.

3. Buy the right type of bike

Just as buying a sport automobile can mean higher insurance premiums, so too can some types motorcycles. Premiums, and which companies will even write the insurance, are different for a standard bike than for a high-performance or dual sport bike.

4. Pay cash for your bike

It goes without saying that if you can pay cash, you avoid paying interest. It also lets you decide what coverage you want to put on the motorcycle to protect it if it is stolen or damaged in an accident. If you borrow money to buy the bike, the lienholder will demand that you buy collision and comprehensive insurance.

5. Ask about discounts

Insurance companies may offer a discount for safety and anti-theft features, a clean driver record, being a senior, having a garage, and other things. Ask your broker.

6. Adjust your deductible

The deductible is the amount that you pay first if your bike is stolen or damaged. A higher deductible results in a lower insurance premium; a lower deductible results in a higher insurance premium.

Give Us a Call

Here at Mackay Insurance, we value each and every client we are able to serve. More than 5,000 people to date have trusted us to help them select just the right insurance coverage to fit their individual needs.

If you need help selecting motorcycle insurance, give us a call at 888-853-5552!

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