How Does Pay By Mile Motorcycle Insurance Work?
Posted on: 24 August 2021
If you don't ride your motorcycle often, you may benefit from pay-by-mile motorcycle insurance. Pay-by-mile insurance is relatively new and could save you some money. You may get better coverage in some cases. However, it may not be the best choice for everyone. Here is more to know about pay-by-mile motorcycle insurance and how it works.
What Is Pay by-Mile Motorcycle Insurance?
Pay-by-mile motorcycle insurance is exactly as it says. Your insurance costs are based on how many miles you drive. Usually, you pay a base price per month, then an amount per mile. Some companies also let you choose a per day rate instead of a mileage rate. Some companies use other metrics in addition to the actual mileage.
Traditional insurance bases their risks on how the average person in your age, gender, and location typically rides. For example, the average person in your demographics may ride on most days and take a lot of risks. The problem is that you may not be the average person, and your riskiness could be significantly lower than that person. Pay-by-mile insurance lets you have some control over your rates in this situation.
Who Benefits from Pay-by-Mile Motorcycle Insurance?
If you ride only once in a while, then you may save money with pay-by-mile motorcycle insurance. For example, if you work at home or are a college student that lives on campus, then you probably don't ride much. You may only ride on special occasions like a motorcycle rally or show. If you aren't using your motorcycle for everyday commuting, you shouldn't have to pay regular rates.
How Does Pay-by-Mile Motorcycle Insurance Work?
Most insurance companies use a device or app to track how many miles you ride. A few companies need a periodic photo of your odometer instead of installing anything. In some cases, they may also track how your ride. For example, they may consider you a higher risk if you tend to ride fast or stop hard. The amount you pay per mile may be based on your riding style in some states.
Like any time you change insurance, examine all your options and talk to an agent to see if pay by mile motorcycle insurance is right for you. If you meet the right criteria, you could get excellent coverage for a more affordable price. Or, you may benefit from traditional insurance. Your agent can advise you on what best suits people in your situation.
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