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Credit scoreBad credit for bikers is generally treated the same as bad credit for other vehicle drivers. While some insurance companies raise rates due to bad credit, this isn’t always the case. Some insurance companies have more leeway while others don’t consider credit as a factor at all. While it’s hard to find cheap motorcycle insurance rates when you have bad credit, it’s not impossible.

Why Do Insurance Companies Consider Credit Scores?

In the eyes of insurance companies, credit scores are seen as your level of responsibility. Insurance companies want to know that you’re reliable and that you’ll pay your insurance bills on time. Having a bad credit score also implies that you’re more likely to file a claim, which the insurance company accounts for in the premium cost.

A credit score isn’t the same as a driving record. Your driving record takes into account only your driving history while your credit score has to do with other monetary decisions.

Poor credit are scores between 300-579. If you don’t know your credit score, you can fill out free online credit raters with your information to calculate your score. Credit is decided by:

  • Payment history: A payment history shows whether you’ve paid your bills on time. This includes credit card bills, mortgage loans, rent, car loans and student loans.
  • Debt: If you have a lot of debt due to multiple loans and overcharged credit cards, your credit score will go down.
  • Credit history: Credit history refers to the age of your credit accounts. Having credit accounts for longer can help boost your credit score.
  • Credit accounts: If you have a good “credit mix,” or otherwise gain credit through both revolving debt and installment debt, your credit score may increase.

Is Motorcycle Insurance Required?

Nearly every state requires bikers to carry some form of liability insurance. The limitations may vary per state, but the requirements are the same as car insurance requirements. In Georgia, you must have:

  • $25,000 for bodily injury/death per person
  • $50,000 for bodily injury/death per two or more people
  • $25,000 for property damage

Check your state’s motorcycle insurance laws before purchasing coverage. With higher premiums due to bad credit, you want to save as much money as possible.

How Much is Motorcycle Insurance?

Motorcycle insurance costs an average of $702 a year in the US. This number varies per state and depends on other factors such as age, motorcycle type, amount of coverage, driving record and more. In Georgia, for example, a motorcycle insurance policy is around $1,150 a year on average.

How to Save Money on Motorcycle Insurance if You Have Bad Credit

There are different ways you can save money on your motorcycle insurance. Make sure to shop around and consider insurance agencies that forgive bad credit. Other ways you can save money includes:

  • Boost your credit score. You can boost your credit score by paying bills on time, paying off credit cards and catching up with debt.
  • Only purchase minimum coverage. Some coverages are optional. If you’re shopping for an insurance policy, you can purchase just enough to keep yourself and other drivers safe.
  • Ride a cheaper bike. Expensive bikes typically cost more to insure.
  • Research discounts. Ask insurance agents about possible discounts you qualify for. If you’re a member of a motorcycle club, you can often receive discounts. There’s also an infrequent rider discount for bikers who don’t use their motorcycle as their main mode of transportation.

The best way to find cheap motorcycle insurance when you have bad credit is to shop around, boost your credit score and ask about discounts.

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