Motorcycle Insurance in Ontario: All You Need to Know in 2022

If you have always felt passionate about riding a motorbike on the open road and you’re thinking of buying one, there are a few essentials to consider first. For instance, motorcycle insurance is compulsory in Ontario, which means you must insure your vehicle. 

That’s why we have put together this simple guide to help you understand the basics of motorcycle insurance and why it’s essential to have one. 

Let’s ride!

How Much Is Motorcycle Insurance in Ontario?

If you own a motor vehicle in Canada, motorcycle insurance is mandatory. Should you fail to provide one, you will be fined between $5,000 and $25,000. You can also lose your licence or have your bike taken away from you for up to 1 year. 

Usually, the price of motorcycle insurance in Ontario can range from $1,500 to $3,500 annually, which comes down to $125 to $292 per month. 

Now, you must be wondering why Ontario charges more for motorcycle insurance than car insurance. But as already mentioned, driving a motorcycle comes at a higher risk. A motorbike has an open design, which makes you more vulnerable to injuries in case of an accident, and can also develop very high speed. 

Furthermore, it’s difficult to pinpoint the exact price as there are many factors involved. In fact, the cost will highly depend on your age, bike type, driving record, and other variables. 

Based on the factors discussed below, your insurance company may charge you less or more. If you’re considered a high-risk driver, you’re more likely to pay higher insurance.  

What Factors Influence the Cost?

There are certain factors that may influence the cost of your motorcycle insurance. Let’s go over them. 

Age

The insurance’s price can vary depending on the driver’s age. Younger riders are more likely to pay higher premiums. This is because young riders don’t have enough driving experience and can’t demonstrate a history of safe driving. On the other hand, older, experienced riders increase their chances of getting a good deal on motorcycle insurance

License Class

Before getting a motorcycle license in Ontario, you need to be familiar with the three types of classes.

Based on your driving experience, you can fit into one of these three classes:

  • M – This license covers the M1 and M2 license. Once you obtain the M license, you have a full license to ride full speed motorcycles. However, before receiving this licence, you will need to complete the Ontario Graduated Licensing Program. The program teaches driving practices along with skill tests that prepare drivers to drive independently.
  • M with condition L – This license is intended for mopeds and motorized scooters
  • M with condition M – This license allows driving motorcycles with three wheels

Usually, recently licensed motorcycle drivers pay higher insurance, especially in case they aren’t fully licensed. 

Driving Record

Insurance companies generally check your driving record before sealing the deal. They want to ensure that you have a clean driving record because it shows them that you’re a less risky driver. For insurers, it means that low-risk drivers are less likely to make a claim, which will lower the cost of the motorcycle coverage

Location 

Depending on where you live, the cost of your motorcycle insurance can increase or decrease. Riding your motorbike in the city area means you’re more likely to drive it regularly. Plus, it puts you at a higher risk of collision. This will increase your premium when compared to someone who’s living in the suburbs. 

Type of Bike

Another factor affecting your Ontario motorcycle insurance is the type of bike you own. If you have a high-powered bike such as a sport motorcycle, you’re more likely to pay higher premium insurance as those types of bikes are considered to be high-risk. For owners of cruisers and touring motorcycles, the insurance rates will be pretty lower.

Moreover, if a motorcycle has been altered and enhanced to boost its performance, your insurance might cost more. Some companies might even decline to offer coverage for your vehicle. 

Storage

When it comest to storage, you can keep your bike in public parking or a private garage. That said, the latter will save you some money. Keeping your motorcycle in a private garage will lower your motorcycle insurance cost. So it might be a good idea to look for one if you don’t have of your own. 

Bike Usage 

Regular riders will pay a more expensive premium when compared to those who ride their bike now and then. 

Now you know which factors influence the motorcycle insurance in Ontario. But what about the coverage? Read on to find out more!

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What Does Motorcycle Insurance Cover?

There are four types of  mandatory motorcycle insurance in Ontario:

Third-Party Liability

Third-party liability, also known as Public Liability and Property Damage, covers the damage caused to a third party in case of an unfortunate event. If the rider injures or kills a person or has caused damage to a third party’s property, they can use the insurance to compensate for the expenses. 

Direct Compensation

Direct compensation protects you in the event of any expenses when your motorcycle has been damaged by someone else. If you’re not at fault, the insurance company will pay the total amount for the damage to your bike

Uninsured Automobile 

If you have been involved in an accident, but another driver without an insured vehicle is at fault, your insurance will cover your damage cost. The insurance company will pay for your medical expenses and your damaged motorcycle. 

Accident Benefits

In case of an accident, if the motorcycle owner dies due to injuries, their dependents will receive coverage. Also, if the motorcycle owner becomes disabled due to injuries, they and their family will receive compensation for the loss of income. 

You can also expand your coverage to medical care benefits and death and funeral benefits. Ask your insurer about increased accident benefits, which will cost you a higher premium. 

Add-Ons

There are a few types of extra coverage you can add to your motorcycle insurance:

Collision or upset coverage

The insurance will cover the damage when the rider has been involved in a collision with other vehicles on the road or tips over. 

Comprehensive coverage

Comprehensive coverage combines Collision or upset coverage and specified perils coverage. Basically, it protects you against damaged caused by something other than auto collision.

All perils coverage 

All perils coverage includes Collision or upset insurance and Comprehensive insurance for your motorbike.  

Specified perils coverage 

This type of insurance protects your motorcycle against damage caused by specified perils, such as:

  • Theft or vandalism
  • Inclement weather ( lightning, storms, hail, floods, earthquakes)
  • Riot or civil disturbance
  • Falling or flying object
  • Fire, etc. 

Per law, the mandatory motorcycle insurance is required for all riders in Canada. You can also add extensions to your insurance policy. Although optional coverage isn’t compulsory, it offers some great coverage benefits at an extra cost. 

Why Should You Get Your Motorbike Insured?

We have already explained that in Ontario, motorcycle insurance is mandatory. Not having one will not only result in hefty fines, it can even cost you your license if you get pulled over.

Why worry every time you’re on the road if something happens? You can make your riding experience much more enjoyable, knowing you’re protected every time you go on the road in case something happens. 

Accidents can happen anytime. Riding a motorcycle puts you at a higher risk because its open design does not offer protection as cars do. Insurance helps protect you, your motorcycle, safety gear, and any third party involved in an unfortunate event.

Motorcycle insurance also covers repairs and replacement costs, property damage caused to a third party and medical bills in case of injuries. So instead of paying with your own money, you can get financial aid from your insurance company to cover the expenses.

If you rely on your bike for daily transportation, you would want to be protected at all times. Your motorcycle will remain protected even when you’re not using it by adding optional insurance to your coverage policy

All in all, purchasing motorcycle insurance is a wise investment.

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Tips for Getting Cheap Motorcycle Insurance

We know that Ontario motorcycle insurance can be pretty pricey. Luckily, there are ways to reduce your premium. Here are some tips on how to get cheap motorcycle insurance

Compare Rates From Multiple Providers

The motorcycle premium cost can differ across multiple companies. When you shop for the cheapest motorcycle insurance in Ontario, compare the rates of numerous providers. You may find that one insurance company offers $2,000 while another offers a premium of $1,500. Make sure to look around until you find the best price for you. 

Increase Your Deductible and Decrease Your Coverage

Another option is decreasing your premium coverage by raising your policy’s deductibles. This way, you will get an annual premium at a much lower cost. But reducing your coverage does come with a risk. For example, if you decide to remove comprehensive coverage from your insurance policy, be prepared to pay more in case of an accident.

Take a Motorcycle Training Course

Did you know that taking a motorcycle training course can help you get lower insurance rates? Taking a motorcycle training course can help you to improve your riding skills. Insurance companies are more likely to offer lower premium rates to low-risk riders. 

Get the M License

If you want to lower your insurance rates substantially, consider taking M license classes if you still haven’t. After 60 to 90 days of passing the M1 license, you’re eligible to get your M2 license. After 22 months of obtaining your M2 license, you can take the road test to be fully licensed. 

Bundle Home & Moto Insurance

Get discounts by bundling multiple insurance policies together under one company. Many insurance companies offer the option of insuring multiple vehicles. You can also bundle your motorbike insurance with your home insurance. 

Insure Multiple Motorcycles in One Household

Getting multi-bike insurance means you’re insuring several motorbikes under one insurance policy. However, the coverage will work only for the motorcycle in use, but your other motorcycles will be protected against specific perils. Insuring multiple motorcycles is cheaper than buying separate insurance policies for each motorcycle. 

Install an Anti-Theft Device

Many companies will offer discounts for those who want to install an anti-theft device on their motorbikes. Not only will it get you better rates, but you will have peace of mind knowing you’ll be covered if your bike is stolen.

Have a Clean Driving Record

Companies prefer to offer better rates to those riders who are less likely to make a claim. Insurers want to check your driving record because it helps them determine whether you’re a safe or high-risk rider. 

Pay Annually

The total cost of seasonal motorcycle insurance in Ontario can be much cheaper than paying monthly premiums. Moreover, if you cancel the insurance for the winter, you won’t be able to receive a refund. Plus, you might pay higher rates in the future due to the gaps in your coverage.  

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Finishing Thoughts

Motorcycles have a high rate of accidents, and having motorcycle insurance will safeguard you in unfortunate events. That’s why it is mandatory to insure your motorcycle and avoid being fined if you don’t own insurance. Although there is no fixed price for insurance, the average cost for basic insurance ranges from $1,500 to $3,500. How much you’ll pay depends on several factors that can lower or increase your premium

After reviewing the motorcycle insurance price, it might seem like a lot. But there are always ways to get lower premium rates and still enjoy the benefits of having your bike protected every moment.

FAQ

What kind of motorcycle insurance do I need?

As a rider in Canada, you must have mandatory insurance with minimum liability coverage. But you can also choose to extend your motorcycle insurance policy beyond the basic coverage. Although you will pay a higher cost for the optional insurance, you get more benefits offering higher protection.

What motorcycle has the cheapest insurance?

Generally, smaller motorcycles with low engine power are cheaper to insure than high-power motorbikes. Mopeds and standard cruisers typically have the most affordable insurance compared to sport bikes and larger models.

Should I insure my motorcycle during the winter?

It is not required to have seasonal motorcycle insurance in Ontario. However, cancelling your insurance during winter times may affect your premium cost. Plus, it could affect your driving record if insurers see gaps in your coverage. So, keeping your insurance active for an entire year is a good idea.

How to file a motorcycle insurance claim?

If you have been involved in an accident, you must first file a report to your insurance company. Once you do that, you will be contacted by your insurer. They may require you to fill out a proof of loss form, so they can determine the coverage amount. 

When filing for a claim, you must provide your policy number and the type of bike, your registration and plate number and accident details.

What factors affect motorcycle insurance premiums?

Every rider can get different premium rates. The motorcycle insurance cost idepends on factors, such as age, driving record, type of bike, class license, usage, storage, and location.

ABOUT AUTHOR

When Biljana first started off her career, she was focused on economics, which was also her area of professional study. However, in time, she started to familiarize herself with the concept of insurance, which instantly struck a chord, allowing her to constantly upgrade her knowledge and eventually become an insurance aficionado. When she's not writing, she loves to go on hikes and explore various natural surroundings.

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