Cautious Motorcyclists Purchase More Insurance
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With the recent increase in motorcycle sales, more insurance companies are providing motorcycle insurance. Some state laws only require motorcyclists to carry liability insurance, but some motorcyclists are becoming more cautious and want more coverage including fire and theft as well as collision insurance. This is partly due to the fact that there has recently been a large increase in motorcycle-related fatalities.
Mary Peters, the U.S. Transportation secretary, claims that people in their 40s and 50s are partially responsible for the recent boom in motorcycle sales.
"One troubling trend is the aging baby boomers who are finding themselves with empty nests and a little disposable income. Many of them are going out and buying bikes - and wrecking them."
From 1997 to 2005, fatalities among motorcyclists in their 40s rose by 230% and by 400% for riders over 50.
Progressive, Geico and Foremost Insurance are a few providers that dominated the motorcycle insurance market until recently. Now motorcycle insurance providers include Allstate, Nationwide Mutual Insurance, and State Farm Insurance. Although motorcyclists now have more choices of insurance providers, some motorcycle premiums have been rising twice as fast as auto premiums. Insurance premiums for motorcycles vary according to the type of bike a person owns as well as their driving record and where they live.
Insurance experts recommend that motorcycle operators carry at least $100,000 per person and $300,000 per occurrence (similar to if that person were driving a car). Members of the American Motorcyclist Association can receive a 10% discount from Nationwide in many states. Another opportunity to receive a 10% discount is for motorcylists to pass an approved motorcycle safety course from a group such as the Motorcycle Safety Foundation.