Motorcycle Insurance 101

Not surprisingly, with better weather, we see more motorcycles on the road. If you’re wondering if there are any differences in their insurance requirements read on!

If you live in Ontario, the province has mandatory motor vehicle insurance. In order to drive a motorcycle in this province, you must have a valid M1, M2, or M class license, be 16 years old and have the proper insurance. This also applies to mopeds, motor scooters, and motor-assisted bicycles.

There are four types of mandatory insurance you need before you can hit the road. The law requires that you have the following minimum coverages:

• Third-Party Liability Coverage of at least $200,000 to protect you if another person is killed or injured, or if their property is damaged. If you're sued, this coverage pays claims up to the limit of your coverage, and the cost of settling the claims. Many insurers provide no less than $1 million in standard policies now.
• Statutory Accident Benefits Coverage to provide supplementary medical, rehabilitation, attendant care, caregiver, non-earner, income replacement, and death benefits if you are killed or injured in an accident, regardless of who caused it.
• Direct Compensation – Property Damage (DCPD) Coverage to pay for damage to your vehicle and its contents, if another driver is at fault for an accident that occurs in Ontario and that driver is insured by an insurance company licensed in the province.
• Uninsured Automobile Coverage to provide financial compensation for you and your family if you're injured or killed by an unidentified driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver, up to $25,000.

You must show proof that you have insurance coverage before you can register your motorcycle or moped or renew your registration. If you lie about your insurance or show false documents, you can be fined $5,000 to $25,000. You can also lose your license for up to one year and have your motorcycle taken away for up to three months.

When driving your own vehicle or someone else’s, you must carry the pink liability slip you receive from your insurance company for that vehicle. You’ll need to show this card when a police officer asks for it. If you don’t, you can be fined up to $400.

There are other types of insurance you can get for your motorcycle in Ontario including specified perils (theft or fire) or comprehensive coverage (damage caused by anything that isn't an accident, like hail). Talk to your broker about how this extra protection could benefit you.

How much will motorcycle insurance cost?

Maintaining low motorcycle insurance rates has a lot to do with a clean driving record. Your rates are affected by where you live, your age, how often you drive, and the type of motorcycle you have. Most motorcycle insurance premiums in Ontario start at $100 per month, but it could still more depending on those factors.

That being said, there are other things that can help reduce rates including:

1. Have your broker shop around for the best rates and coverage.
2. Increase your deductibles to lower your premiums. This means you’ll pay more if you have to make a claim so make sure it fits your budget.
3. Take a motorcycle training course. If you take a training course accredited by the Ministry of Transportation, you will save on premiums.
4. Use anti-theft technology – If you install these security devices or use anti-theft technology you’ll like qualify for some discounts and have more peace of mind because you’ve done so!
5. Bundle your insurance – If you combine your home and motorcycle insurance you’ll likely qualify for a discount.
6. Join the club - Some insurers offer discounts to members of established motorcycle riders clubs. And, you can also qualify for a discount as a member of alumni organizations or professional groups. Ask your broker!
7. Don’t cancel in the winter - Your monthly premium considers your active driving months and – as such – is smaller. It’s better to keep your insurance annually so you don’t lose good rates and discounts by cancelling in the off-season.

Motorcycle and snowmobile insurance is a specialty insurance product, and not all insurance companies offer it. If you already have auto insurance, check with your broker to learn more.

RELATED READING: Motorcycle insurance requirements across Canada