Motorcycle Insurance

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Motorcycle Insurance

3 Ways Where You Choose to Live Affects Your Motorcycle Insurance Rates

If you have been searching for the best rates possible on your motorcycle insurance, you are not alone. Motorcycles are considered to be a riskier vehicle to drive, and because of this, motorcycle insurance can be rather costly to purchase. While the vehicle that you choose to insure plays a major role in your coverage rates, where you choose to live also can influence your rates. If you are looking for savings on your motorcycle insurance and are considering a relocation in the near future, keep in mind that your location affects your rates in three key ways.

Minimum State Coverage Requirements
Each state has minimum motorcycle insurance requirements, and these requirements are designed to minimize the financial impact of liability if you cause an accident while driving your motorcycle. State requirements vary considerably by location, and you may find that the coverage requirements in a nearby state are considerably lower than your current requirements. If you live close to a state line and would consider a relocation, doing some research may help you to identify potential savings available to you.

If Your Credit Rating is Reviewed
Where you choose to live also may impact if your credit rating is reviewed as part of your motorcycle insurance qualification process. Only three states prohibit the use of credit ratings for insurance qualifications, and these states are Massachusetts, Hawaii and California. If you live in a state other than these three, there is a good chance that your credit rating is affecting your insurance rates in some way. If moving is not an option for you and you are aware that you have a lower credit rating, you may need to make an effort to improve your credit rating to see a decrease in your coverage rates.

Replacement and Repair Costs
You may think that replacement and repair costs for vehicles would be fairly similar in all locations, but this is not the case. In fact, choosing to live in a rural location just a few dozen miles down the road from a bustling urban area may result in considerably lower replacement and repair costs. These costs directly contribute to your motorcycle insurance premium. If you are unable to move to a more affordable location, you may consider finding a motorcycle that has a lower repair or replacement cost for savings on your insurance policy.

While some who are shopping for lower motorcycle insurance rates can easily relocate to a nearby location for additional savings on their premium, others may be locked into a mortgage or may have other reasons why moving is not ideal or possible. Keep in mind that relocating is only one way that you can overcome these cost factors, and there are other options available as well. Now that you are more aware of how location influences your insurance rates, you can take steps in the future to keep your rates as low as possible.