How does kms per year and bike value effect insurance rate? | GTAMotorcycle.com

How does kms per year and bike value effect insurance rate?

H

HonDerpa500r

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Getting a new bike, and while calling around each company asked for how many kms I’d be putting on per year, and if it’s a commuter or pleasure. They also of course want to know the price of the bike.

I’m curious, does any of that even matter? If I remember correctly, I never had to provide the actual lrice I paid for my current bike to my insurance company.
 
Higher km's per year equates to higher risk,

Higher value bike affects the premium for fire/theft/collision--Premium for a $5000 bike will be a lot less than for a $20,000 bike.
 
if a new bike is financed the cost needs to be known
as you are indemnifying the lender against loss of secured asset

biggest depreciation hit is in the first 2 years
book value will likely not cover the monies owed
it's called a limited depreciation waiver
and you pay for it, for the lenders benefit

on a bike with no lien holder they don't care what you paid
you get book value in the event of a loss
so that's what they use as a value when underwriting
 
Good question. Another question. If you tell them say 2000kms you plan on riding and you end up riding 8000kms. All is good but if you get into an accident will they give you issues saying you put on too many miles and try to void the policy?
 
Viper_05 said:
Good question. Another question. If you tell them say 2000kms you plan on riding and you end up riding 8000kms. All is good but if you get into an accident will they give you issues saying you put on too many miles and try to void the policy?
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I see how they could argue you were not truthful when you said this would be a 'casual use' 2,000km/yr vehicle and you`re piling on 8k a year.

Just tell your broker you`re considering commuting on it at a higher yearly mileage and see what the difference is.
 
Commuting puts you in more of a risky situation, so higher premium. Recreational use is "less" risky.

The mileage is just an estimate. You could do lots of casual riding and rack up lots of miles.

When they ask, "What did you pay for the bike?" Always say the bike is worth $x, not what you paid....
 
If you say you paid less than it's worth, they can pay out less. Just another item of info for the file in most cases.
 
Riceburner said:
Commuting puts you in more of a risky situation, so higher premium. Recreational use is "less" risky.

The mileage is just an estimate. You could do lots of casual riding and rack up lots of miles.

When they ask, "What did you pay for the bike?" Always say the bike is worth $x, not what you paid....
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^ This. Couple years ago, few insurance companies like RBC refused to quote me, when I told them I'd be commuting on it.
 
taximan62 said:
Higher km's per year equates to higher risk,

Higher value bike affects the premium for fire/theft/collision--Premium for a $5000 bike will be a lot less than for a $20,000 bike.
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Which has very little impact on your overall insurance rate. Actually, usually older, cheaper vehicles are more expensive to insure than new ones. At least with cars a lot of it is due to better safety features in newer vehicles and less chance of having a catastrophic failure due to age.
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