Is Motorcycle Insurance Cheaper than Car Insurance?

If you’re thinking of either getting a car or motorcycle, you must also be wondering which one’s cheaper to insure? Riding a motorcycle comes with increased life risks as it does not have any protective barriers unlike cars and other motor vehicles.

On the hand, cars are bigger, and heavier than motorcycles, so a direct impact with any vehicle and object can cause far greater damage which can lead to both injuries, and substantial property damage.

In many cases, motorcycles are more susceptible to theft compared to cars for their lightweight design and simpler security features. If you consider the risk factors of motorcycles and cars, it puts motorcycles on the riskier edge.

But insurance isn’t just about crash risks or theft. It typically depends on which one can cost more to repair and replace. As cars are generally more expensive than motorcycles, does that mean motorcycle insurance is cheaper than car insurance? Let’s break it down and explore the comparison in detail.  

Is Motorcycle Insurance Cheaper than Car Insurance?

Yes, generally motorcycle insurance is comparatively much cheaper than car insurance. The main reason is, there are way more car drivers in the US compared to motorcyclists. Based on the statistics, there are more than 235 million car drivers in the US compared to around 8.8 million motorcyclists as of 2024.

According to NSC, as of 2022, car accidents have led to 46,027 deaths whereas motorcycle accidents have led to 6,218 deaths in the same year. Given that there are more cars on the streets compared to motorcycles, there are a lot more car accidents compared to motorcycle accidents, which leads to increased insurance claims among car drivers than motorcyclists. 

So, as auto insurance companies need to compensate car drivers more due to higher number of insurance claims, motorcycle insurance is significantly cheaper than car insurance.

To better understand the cost difference, the best approach is to directly compare the average cost of motorcycle insurance compared to car insurance as follows.  

Average Cost Comparison: Motorcycle Insurance vs Car Insurance 

To determine whether motorcycle insurance is cheaper than car insurance, the most crucial step is to analyze, and know the average insurance premiums for both vehicles.

• Average Cost of Motorcycle Insurance: For minimum liability-only coverage, the average motorcycle insurance rate is $156 per year. The rate of full coverage insurance can vary from $396 per year to up to $500 or more depending on the choice of insurance coverage options, and their limits.
• Average Cost of Car Insurance: The average minimum coverage for car insurance is $678 per year, and for full coverage it's $2,458 per year.

Comparatively the average cost of car insurance is four times more expensive than motorcycle insurance on average for both minimum and full coverage. This proves that motorcycle insurance is in fact a lot cheaper than car insurance, as the rates differ significantly by a high proportion.  

Why is Motorcycle Insurance Cheaper than Car Insurance?

You might be wondering that motorcycles are undeniably riskier, as there is greater chance of severe injuries, and even death compared to cars. So, why is motorcycle insurance cheaper?

Insurance rates aren’t solely determined by the likelihood of accidents, they also consider other crucial factors such as vehicle type and price, cost of repairs, the higher potential for property damage with cars, and seasonal use.  

Motorcycles are Generally Cheaper than Cars

If you explore the price of entry level motorcycles compared to cars, cars are apparently way more expensive, which also explains why car insurance is 4 times higher for cars. An entry level motorcycle is priced around $4,000, whereas the average entry level car costs between $20,000 to $25,000.

In the US, the price of average sedan cars is $30,000 to $50,000 on average. If you compare it to high end motorcycles, or sports bikes, the average cost ranges from $20,000 to $25,000, whereas the price of sports cars can vary around $30,000 to $18 million and above.

Auto insurance or motorcycle insurance coverages such as collision insurance, and comprehensive insurance usually cover the current market value of the vehicle. So, in case the vehicle is badly damaged beyond repaired, or if its stolen, insurers need to cover the entire cost price of the vehicle up to the coverage limit.

And that’s why the price of the vehicle, and its type, is crucial when it comes to determining insurance rates. As motorcycles are relatively cheaper than cars, this factor alone is a key reason for motorcycle insurance being cheaper than car insurance.  

Lower Repair and Replacement Costs

Motorcycles are generally much cheaper than cars. Based on the overall comparison concerning the price of these two types of vehicles, cars are relatively much more expensive.

The more expensive the vehicle is, the costlier its parts, maintenance, repair and replacement costs are. So, this is technically the main reason that makes motorcycle insurance much cheaper than car insurance.

For example, if you get collision insurance, and if your motorcycle gets totaled, and it is worth around $8,000, and similarly if you have a car with a market value of $40,000 and that’s beyond repair as well. So, which one will be cheaper to repair and replace? The motorcycle, right?

As the repair and replacement cost is lower for motorcycles on average, that’s why the average insurance rate is much cheaper for motorcycles compared to cars.  

Cars are More Prone to Causing Accidental Property Damage than Motorcycles

Cars are much heavier than motorcycles, and that’s why when a car collides with another vehicle, or property such as fences, mailboxes, or a building, it is much more likely to cause greater damage.

This makes liability insurance a lot more expensive for cars than motorcycles. So, that’s why the average cost of motorcycle insurance is $156 per year, whereas for a car it is $396 per year.

Moreover, this also makes collision insurance much more expensive for cars compared to motorcycles, and that’s there’s a drastic difference in the rate when it comes to the average full coverage rate of motorcycles and cars, which ranges from $678 to 2,458 per year.

Seasonal Usage

Unlike cars, you cannot ride motorcycles every season throughout the year, especially during harsh winters. With icy roads, severely low temperate, and low visibility it is very dangerous, and uncomfortable to ride a motorcycle during winter.

Most insurers offer a layup period insurance which only keeps the comprehensive insurance coverage active and suspends the other types of motorcycle insurance coverage in your policy. This makes motorcycle insurance relatively much cheaper than its standard rate.

As cars can be driven all through the year, the layup insurance policy for cars isn’t necessary, unless it’s in the workshop for repairs, or if it’s stored in the garage and you don’t intend to drive it for a certain period. This seasonal flexibility in coverage is another reason motorcycle insurance tends to be cheaper than car insurance.

Also Read: Can I Cancel My Motorcycle Insurance in the Winter?

Comparison Aside: Is Motorcycle Insurance Expensive?

When motorcycle insurance is compared to car insurance, it is cheaper. But if the comparisons are kept aside, is motorcycle insurance expensive? Well that totally depends on the motorcycle’s type, and it’s make and model.

Typically, cruisers are cheap to insure, and they’re usually within the average motorcycle insurance premiums. However, if you insure sports motorcycles or tour motorcycles, it can cost you more than $223 to $500 or more per month.

Depending on the types of motorcycle coverage you purchase and their limits, the cost of your motorcycle insurance can even exceed $2,500 or more. So, yes motorcycle insurance can be expensive especially if you own a high-end motorcycle.  

Tips for Getting Cheaper Motorcycle and Car Insurance

Most insurance companies that provide car insurance also provide motorcycle insurance, and that’s why there is a broad similarity when it comes to determining the insurance rate of these two types of motor vehicles. So, here are some effective tips to get cheaper insurance rates for both motorcycles and cars.  

• Shop Around and Compare Quotes.
• Maintain a Clean Driving Record.
• Bundle Your Policies for Discounts.
• Consider Usage-Based Insurance (Telematics Insurance).
• Choose Higher Deductibles to Lower Premiums.
• Opt for Safety Features and Anti-Theft Devices.
• Avoid Small Claims.

Bottom line

If you’re thinking of buying either a motorcycle or a car depending on whichever has cheaper insurance rates, then you should definitely pick the motorcycle. However, if you already own either a car or a motorcycle, and you’re exploring to see which one will cost you less, it’s safe to conclude that motorcycle insurance is cheaper than car insurance in general.  

For help purchasing the right insurance policy for your motorcycle or car, contact us or find an agent nearby. We’re here to help you secure the best coverage at the most affordable rate within your budget.  

FAQ

Is it cheaper to insure a motorcycle than a car?

Yes, it is cheaper to insure a motorcycle than a car, mainly because motorcycles are cheaper and have a more affordable repair and replacement cost compared to cars.  

What is the average cost of motorcycle insurance? 

The average cost of minimum liability only motorcycle insurance is $13 per month, and $156 per year, and the average cost of full coverage motorcycle insurance is $33 per month, and $396 per year.

What is the average cost of car insurance?

The average minimum coverage for car insurance is $678 per year, and for full coverage it's $2,458 per year or more.  

Are motorcycles easier to maintain than cars?

Yes, motorcycles are generally easier and cheaper to maintain than cars due to their simpler mechanics and fewer parts. However, they require more frequent upkeep, such as tire replacements and chain lubrication, especially with regular use.

Does car insurance cover motorcycles?

Car insurance and motorcycle insurance are separate insurance policies. So, no, car insurance does not cover motorcycles, you will have to purchase motorcycle insurance to specifically cover your motorcycle.