Motorcycle Insurance: 13% Drop In Theft May Decrease Monthly Premiums

By Jeffrey Paulsen on April 17, 2010, 9:04 am Posted in Business News

In an insurance policy, comprehensive coverage denotes coverage for fire and theft for both automobiles and motorcycles. It is good news that there is a drop in the theft of motorcycles. Not only will the owner have less of a chance of coming outside and finding the bike gone but the premiums in general will decrease.

Savings On Comprehensive

Comprehensive coverage is a fair-sized percentage of the premium for all the coverage on the motorcycle. Most people take a $500 deductible (sharing the risk with the company). This means that if the motorcycle vanishes, the insurer will pay for the book value of the motorcycle after the individual pays the first $500.

With a drop in theft, the chances of a motorcycle being stolen decreases. In some regions this 13% number will be higher, while in other areas it will be lower. Now the owner of the motorcycle can save even more money by raising the deductible to $1,000. There will be a lower overall rate and the motorcycle owner will compound the savings by increasing the deductible. Not everyone will want to take the chance on their motorcycle being the one that is stolen and will leave the deductible at $500. After all, the drop in theft is a statistic and whose motorcycle will be stolen can never be known.

 

Competition Will Add To The Savings

There is an increasing competitiveness in the auto and motorcycle insurance business. This too has led to lower rates. Finally, there is one industry where price rises are leveling off if not going down. This is the result of the free market working its magic. Hopefully, no government regulation will throw this competition out of balance. It is about time that the motorcycle rider gets a break. The motorcycle is a machine that when something goes wrong is costly to repair. Some of the savings from the insurance can be put aside for such an occurrence.

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