If you’re planning to ride a motorcycle in Canada, insurance is one of the biggest expenses you must consider. Of course, some of the most common questions people ask about riding motorcycles in Canada relate to insurance coverage.

How much are you likely to spend on a motorcycle? And how can you reduce your insurance premiums in Canada? Well, if you’re planning to ride a motorcycle in Canada, here is everything you need to know about motorcycle insurance:

Motorcycle Insurance is Mandatory in Canada

If you want to ride a motorcycle in Canada, you’re legally required to obtain an insurance with the following basic liability coverage:

1. Third-party liability coverage: This is a type of insurance policy covers damages and injuries caused by your motorcycle to people or property.
2. Direct compensation coverage: If your motorcycle is damaged due to an accident and you’re not at fault, this insurance policy will compensate your loss.
3. Uninsured automobile coverage: This insurance policy is meant to cover any damages or injuries caused by an uninsured rider.
4. Accident benefits coverage: In the unfortunate scenario that you’re injured or killed in a motorcycle accident, this insurance policy will compensate you or your family.

However, the following insurance policies are optional in Canada:

1. Comprehensive coverage: You can choose this insurance if you want to be covered if your motorcycle is lost or damaged due to anything that’s not related to collision such as theft, vandalism, or natural disaster.
2. Collision coverage: As the name suggests, this insurance policy kicks in if you’re involved in a collision.
3. Specified perils coverage: This will protect your motorcycle against a specific risk such as theft or fire incident.
4. All perils coverage: Instead of obtaining a comprehensive, collision, and specific perils coverage, you can sign up for all perils coverage to include everything.

Please note that the insurance policy will only cover the unique rider who operates the motorcycle. The passenger of a motorcycle is automatically covered under the accident and liability clause that’s included in your insurance policy as the motorcycle rider.

It Can Be Expensive to Insure Your Motorcycle

It will likely cost you between 1,200 and 3,000 dollars a year to insure your motorcycle in Canada. This means that insuring your motorcycle in Canada could cost almost as much as insuring your car. In fact, in some cases, you could end up paying higher insurance rates for a motorcycle than you would for a car.  

However, the insurance rates for a motorcycle in Canada are dictated by your age, driving record, storage, type of bike, location, license class, coverage type, and bike usage. For instance, if you’re a young rider in Canada, you will likely pay higher insurance premiums compared to an older and more experienced rider with the same type of motorcycle. Not to mention, provinces such as Ontario and Alberta tend to have higher insurance premiums compared to other provinces.

You Can Reduce Your Insurance Premiums

Even though there are factors such as your age, and location that are beyond your control when calculating your insurance premiums, it’s possible to reduce your insurance through other methods. For starters, you can start by comparing insurance quotes from different service providers in your province. In most cases, motorcycle-specific insurers offer cheaper quotes.

Beyond that, you can significantly reduce your insurance rates if you take a safety motorcycle course, attain a full motorcycle license, and maintain a clean riding record. Motorcycle insurers will also consider if you’ve installed anti-theft technology, how often you ride your bike, or if you’re a member of a motorcycle club.

Of course, the higher the CC (cubic centimeters) of your motorcycle engine, the higher the insurance premiums. This means that you will likely pay more insurance premiums if you’re riding a sports bike compared to a regular motorcycle. Similarly, if you’re buying a used motorcycle you will qualify for cheaper insurance premiums compared to a rider with a new bike.

Another way to reduce your insurance premiums is by increasing your deductible — but that means you will have to pay more in case you file a claim.

Motorcycle Insurance in Canada is Year-Round

Motorcycle insurance in Canada is billed annually rather than seasonal — even if you only ride your motorcycle during summer months.

However, some insurance companies reduce the rates during winter months when most people don’t ride their motorcycles while keeping coverage such as theft or fire. This means even if you don’t pay during the winter months, your savings won’t be worth the hassle. In fact, paying the full yearly amount of your insurance will save you more money in the long run.

Alternatively, you could consider bundling up your home, car, and motorcycle insurance together to reduce the costs if you don’t ride your bike that often.