hey, how’s it going people, brownbrady here,and thank you for tuning in to my channel. in this episode, i’m going to share withyou some tips on how to reduce motorcycle insurance costs. but first, some common questions that new riders ask about insurance. what does ‘comprehensive’ coverage mean, and is it mandatory?
comprehensive means that the insurance company will take on the risk of paying for any damage or loss to your vehicle. for example, if your motorcycle was stolen, the insurance company will pay to have it replaced. this type of coverage is optional, unless you borrowed money to buy your bike. and in such cases, the bank will
force you to get comprehensive insurance to protect themselves, until your loan is discharged. what does ‘third party liability’ coveragemean third-party liability coverage, in canada,means that the insurance company will defend youfor any claims by a third party due to damagesyou caused while operating your vehicle. for example you ran into someone's backyard
and wrecked their fence. this is mandatory in canada, and in many countries it’s called standard insurance. but if you want to save some money, you can choose to go with the minimum coverage, like $200,000. however, keep in mind that personal injury lawyers nowadays will push up to a million dollars in liability claims,
so if you can afford a million dollar coverage, go for it. what is a ‘deductible’? a deductible is money you have to pay up front for an insurance claim. the insurance will then pay for the balance. for example, if your repairs will cost $2000, and your deductible is a $1,000, you must first pay $1,000, and the insurance
company will pay the other $1,000. the purpose of the deductible is to discourage large amounts of trivial costs that you could have paid for yourself. a higher deductible will reduce your insurance cost. motorcycle insurance works in the same wayas car insurance, so if you have an excellent driving record in your car, you will enjoy the same
savings in your motorcycle insurance. also, keep in mind that your driving recordwill affect any vehicle that you operate as a principal. there are many factors that affect the costof insurance including your age, previous accidents or claims, traffic violations, continuous insurance coverage, your city’s claims loss history, and the type of motorcycle you wantto
ride. now that that is out of the way, here areways to reduce motorcycle insurance costs: number one do not get comprehensive insurance unlessit is mandatory. while this means that you will be shouldering the cost of any damages to your motorcycle like fire, theft, and collision.
you can put away the large chunk of moneyyou will be saving into a bank. and after several months, you will have enough money to completely insure your own bike. number two increase your deductible. if you must take comprehensive coverage, increase your deductible as much as you can.
the higher the deductible, the bigger the savings. then put the savings away until you have enough to cover it. for example, if you have a $1,000 deductible, put away $125 a month for 8 months. number three take a motorcycle safety course. you can receive discounts from your insurance
company, and over time, you’ll recoup the cost of the safety course. number four take advantage of club membership benefitslike motorcycle clubs, caa, and costco. sometimes they offer great insurance discounts for being a member. number five use an insurance broker.
they’re like mortgage brokers in that theyhave access to many insurance companies. you can save time by having a broker makeall the phone calls for you to insurance companiesand you can pick up the lowest rate if you wish. number six ask for discounts. for example, some insurance companies offera discount for paying for the whole year in
advance, or if you also insure your home and other vehicles through them. it doesn’t hurt to ask. number seven insure a lower displacement bike. it shouldn’t come as a surprise that largerbikes will cost more to insure. so at least until you have a good enough driving record, ride a lower displacement bike likea 500
cc or less motorcycle like the ones i have back here. and finally, maintain a clean riding recordover time. riding defensively isn’t just for your own physical protection, it also has a positive effect on your insurance record. maintain an excellent record and don’t interrupt your insurance coverage.
and now my thoughts on comprehensive insurance. an insurance company’s job is to take onthe financial risks for you so that you can have peace of mind at a cost. and a standard insurance coverage should bepart of your overall financial plan. comprehensive insurance, however, is likeforced you’re paying the insurance company to coverthe
cost of damages to your motorcycle ahead oftime. and when you file a damage claim, you willbe forced to pay that back again through an increase in your insurance premiums. so what am i saying? while not all of us are wealthy enough topay for a 1 million dollar lawsuit, a $1,000 repairjob should be doable in just a few months of saving, and a $10,000 replacement fund in a few years.
it’s good practice to always have an emergency fund anyway. so if you’re willing to fund your own comprehensive insurance, do it. and that will be all for this episode. if you have any other tips on how to saveon insurance, please add them to the comments section. if you found this video to be helpful, pleasehit
that like button, i’ll see you in my nextvideo. as always, ride safe, and thanks for watching.