While cars require an insurance policy to legally operate on Canada’s roadways, there are plenty of other types of vehicles that also need their own coverage before they can be taken out and operated, and that includes motorcycles.
If you currently own a motorcycle or are considering purchasing one, you’ll need motorcycle insurance. The question is, where’s the best place to get it?
Key Points
- Motorcycle insurance is mandatory in all provinces and territories to ride a motorcycle on public roads.
- Insurance policies can include third-party liability, accident benefits, uninsured automobile coverage, and direct compensation property damage (DCPD).
- Several factors affect motorcycle insurance premiums, such as the type of motorcycle, your age and experience, your driving record, location, and mileage.
- Discounts may be available for factors such as bundling policies, taking a motorcycle safety course, and maintaining a clean driving record.
Is Motorcycle Insurance Mandatory In Canada?
Yes, just like car insurance, an insurance policy is required to operate a motorcycle on Canadian roadways. There are various levels of coverage available, depending on your needs and budget.
What Does Motorcycle Insurance Cover?
Motorcycle insurance provides coverage in the event of a motorcycle accident, loss, theft, or damage to your motorcycle. More specifically, this policy covers the following:
- Third-Party Liability. Provides protection in the event of an accident that results in damage or loss to another individual when you are at fault.
- Accident Benefits. Protects you if you are injured in a motorcycle accident, no matter who was the cause.
- Uninsured Automobile Coverage. Provides protection in the event of death or injury caused by an uninsured driver or by a hit-and-run.
- Direct Compensation Property Damage. DCPD covers damage to your motorcycle from a collision in which you are not at fault or are only partially to blame.
Additional Coverage Options
If you wish to have additional coverage that a standard motorcycle policy does not offer, you may want to top up your policy with additional coverage, including the following:
| Coverage Type | What It Is |
| All Perils | Covers all causes of loss, except those directly excluded in your policy. All perils can also provide coverage for loss or damage if your motorcycle is stolen or damaged by an additional driver. |
| Collision | Covers the cost to repair or replace your motorcycle if it is damaged as a result of a collision or impact by an object on the ground other than another vehicle, such as a lamp post, street sign, or guard rail. |
| Comprehensive | Covers the cost of repairing or replacing your motorcycle if it’s damaged by other unforeseen situations, such as falling objects, fire, vandalism, theft, natural disaster, or riot. |
| Specified Perils | This covers perils that are specifically listed in your policy, such as fire, lightning, hail, earthquake, and theft. |
| Roadside Assistance | If you’re ever stranded on the side of the road and need help, a roadside assistance policy will cover the cost of things like a tow truck, change of tire, or gas. |
Features To Look For In Your Motorcycle Insurance
When comparison shopping for a motorcycle insurance policy, look for the following features:
| Feature | What It Covers |
| Helmet And Riding Gear Coverage | Covers the cost of replacing your motorcycle apparel, including safety gear like your helmet. |
| Personal Effects Coverage | Covers personal effects that you carry on or in your motorcycle. |
| Temporary Replacement Bike | Covers the cost of a rental motorcycle, which can come in handy if you depend on your bike to commute. |
| Keys And Locks | Provides financial compensation to re-key or re-code the locks on your bike if someone steals your keys. |
| New Replacement | Provides a new equivalent replacement if your motorcycle is relatively new and is written off after an insured incident. |
| Agreed Or Market Value | Pays the full insured and agreed-upon value of a motorcycle in the event of total loss. |
| Flexible Deductible | Allows you to customize your costs by determining your deductible size. |
How To Buy Motorcycle Insurance
To get a motorcycle insurance plan, follow these steps:
Step 1: Research Insurers
Do some comparison shopping with various insurance companies to see where the best deals are. You can go directly to independent insurance providers, or use an insurance broker to help you find a provider. Alternatively, you can use an online aggregator that will populate a list of providers for you, along with the rates they offer.
Step 2: Provide Your Information
Once you’ve decided on an insurance provider, you’ll need to provide them with lots of information. You can save time by having all the necessary documents gathered before you hop on a call with a provider. Information you may want to have handy includes the following:
- Personal information (age, address, license status, registration, etc)
- Motorcycle details (make, model, year, engine size, etc)
- Riding history
- Intended usage and mileage
Step 3: Choose Your Coverage
There are multiple levels of coverage for motorcycle insurance, as mentioned above. Decide what type of coverage you want based on your needs and budget. You may also consider optional coverages depending on your situation, such as roadside assistance or specified perils.
Step 4: Start Paying Your Premiums
You’ll need to pay your premiums on time to ensure that your policy remains in effect and that you have coverage at all times. This can usually be arranged via direct deposit if you provide the broker with a void cheque.
What Is The Average Cost Of Motorcycle Insurance In Canada?
The cost of motorcycle insurance varies by location. So, you may pay more for this type of insurance in one city compared to another. That said, the average cost of motorcycle insurance in Canada is roughly $1,600 a year, though premiums may be lower or much higher depending on several factors, which we’ll discuss next.
Factors That Affect The Cost Of Motorcycle Insurance
The cost of a motorcycle insurance policy will vary from one person to another. Usually, this type of insurance policy costs more during the first year and may taper off somewhat in subsequent years, depending on other factors, including the following:
- Type Of Motorcycle: Expensive or rare models tend to be more expensive to insure. Plus, larger engine displacement (cc) generally results in higher premiums.
- Age: Younger drivers usually pay higher premiums because of a higher perceived risk.
- Motorcycle Experience: More experienced drivers may be given discounts.
- Driving Record: A clean record can lead to lower premiums because of the reduced perceived risk.
- Location: The cost of insurance varies by location as a result of differences in factors such as theft rates, traffic, and claims history.
- Mileage: The more mileage you put on the motorcycle, the more you may pay for insurance.
How Can I Get Cheaper Motorcycle Insurance?
To ensure you get the lowest rate possible on your motorcycle insurance policy, consider the following tips:
- Comparison Shop. It will be worth your time and effort to compare different rates with different insurance providers, which you can do quickly and easily with an online aggregator.
- Increase Your Deductible. As mentioned, increasing your deductible can reduce your premiums, but if you do make a claim, you’ll have to pay more up front.
- Bundle Your Policies. If you have other insurance needs, consider bundling your policies with one insurance company.
- Take A Motorcycle Training Course. Most insurance providers offer discounted rates to those who have taken the proper training course to ensure safer driving.
- Improve Your Credit. If your credit score is a little low, consider taking some time to give it a boost. You may be offered cheaper premiums if you have good credit (depending on where you live, as some provinces prohibit the use of credit scores to determine auto insurance premiums).
Can My Credit Score Affect My Motorcycle Insurance Premiums?
Yes, your credit score can impact the cost of your motorcycle insurance premiums. Insurance companies often use credit scores to determine a person’s creditworthiness and therefore their risk as a client. A higher credit score can indicate financial responsibility, which can lead to lower premiums, while a lower credit score may result in higher premiums due to higher perceived risk.
That said, it should be noted that the use of credit scores to determine premiums or to approve an application varies by province. In some provinces, the use of credit scores to determine insurance rates without your consent is not permitted. In other provinces, insurance providers may need your consent to check your credit score.
Final Thoughts
If you want to take your motorcycle out on the road, you’ll need an insurance policy to ensure that you’re covered and following the law. But before you take out a policy, make sure you do a little comparison shopping to find the lowest rate and consider your specific needs so that you’re adequately covered.
