Are Older Motorcycles Cheaper to Insure? – A Case Study

There are many thoughts and uncertainties regarding the cheapness of insurance for older motorcycles. That is to say, It’s hard to say if older motorcycles are more affordable to insure. Most importantly, It depends on the insurance company and the type of motorcycle you have. But we have come up with a case study to help you understand how cheaper older motorcycles can be to insure. So, Are Older motorcycles cheaper to insure?

Yes, Older motorcycles are more affordable to insure because they are less likely to cause accidents. The more likely a bike is to break down, the more expensive it is to insure. The minimum average cost is about $400 per year for complete coverage, fluctuating in different states.

Are Older Motorcycles Really Cheaper to Insure? How?

Are Older Motorcycles Cheaper To Insure

A study conducted by the NHTSA says minimum insurance for motorcycles costs $426 per year on average. It widely varies from state to state and follows many factors, such as what kind of coverage you’re after and who you are. The amount of coverage will depend greatly on the reputation and track record of the insurance company.

In general, they would likely give you some choices because they want to make sure they fit your requirements perfectly.

In the case of older motorcycles, they can be cheap for the following facts:

  1. Older motorcycles are less likely to cause accidents, so it is unlikely their owners would need the full coverage that a younger motorcycle rider may require.
  2. An old motorcycle rider can qualify for lower premiums because of their excellent driving track record (These rules also depend on where you live.)
  3. Older vehicles can get sold anytime soon, making them less valuable than modern and newer bikes.
  4. Older motorcycles (2000 and before) have a lower ownership cost.

What Coverage Types are There For Older Motorcycles to insure?

Type Of Insurance For Older Motorcycles

So, your concern regarding “are older motorcycles cheaper to insure?” has been cleared. Now, you want t know the insurance coverage type that will suit your old buddy. Not a matter.

There are many different types of insurance. It all depends on your necessities and the amount of coverage you would like to purchase. But you have to meet the minimum insurance required by your state. Otherwise, your motorcycle value for insurance will significantly decrease.

You can get primary third-party fire, theft, and property insurance that feature coverage at a low cost (around $25-$75 per month). This kind of insurance might cover repair costs if they were stolen, damaged from an accident, or COLLAPSED by natural disasters such as floods/storms, etc. So you only need this if you want to keep your insurance cheap and won’t be using your vehicle for other things.

Basic-rider’s insurance will have the same benefits as regular insurance, but some extras will also. If you get injured in an accident, this insurance will pay for your medical bills, lost wages, and legal expenses. You can keep the bike for a year if you want to. Thankfully, You can keep your motorcycle for one year if you have such insurance, even if you don’t pay the insurance bill.

After all, I don’t think you will need professional insurance coverage for older motorcycles. There are more qualified and experienced versions of insurance available too! But nowadays, only modern motorbikes purchase such insurance.

According to statistics, Modern motorcyclists purchase “Comprehensive & collision” coverage. The price of such coverage types starts from $90 per month. But for older motorcycles, primary third-party coverage is good enough. Isn’t it?

How Does a Motorcycle Type Affect The Cost of Insurance?

The Relative Risk of an Object and Type The relative risk principle is the first principle. It is applicable when determining your insurance coverage. Your insurance company will evaluate the suitability of your bikes (the type) for you to drive. It depends on various factors that build up multiple relationships called classes or groups. These different classes are Road bicycles, Scooters/Stagecars, Off-road Motorcycles, and Mopeds.

There are two main principles that one has to know before he drives his motorcycle:

Relative Risk

The relative risk principle is to decide if you should be allowed to have insurance for a particular type of bike. The insurance company will compare your motorcycle according to classes of risks. The types of bikes are Road Bicycles, Scooters/Stagecars, Off-road Motorcycles, and Mopeds.

The probability of getting into an accident with a motorbike of a specific category is different based on the various conditions and circumstances of the rider. If you ride in a city a lot and ride fast – you are more likely to get into an accident.

For instance, as an Off-road motorcycle rider, you might get standard one-year-only liability insurance, considered safe enough to cover the amount of money in damage and injuries caused by your bike.

It is a question that you have to ask yourself. What insurance coverage type do I suit? It depends on your intent, style, how often you drive, which roads you drive, etc.


According to the different classes mentioned above, there are specific differences in the types covered under regular liability primary coverage (which is extendable).

These differences are private passengers, business drivers*, commercial trucks**, and some motorsport drivers***. Casual or professional drivers don’t ride often. As a result, they are less risky. On the other hand, business drivers are regular and long-time riders. They hold more odds of facing accidents. So, the purpose of your motorcycle riding is a crucial deciding factor for coverage.

The standard liability works when you have a collision and the other motorist is involved. Private passengers don’t need any insurance to be insured as they will not ride on your bike/vehicle if it causes them physical damage or death while in that vehicle.

What is The Cheapest Bike to Insure?

The Cheapest Bike To Insure

The cheapest motorcycle type to insure is the 125cc 2-stroke model. It has a low minimal average cost of $204 on average, though there can range from around $200 to more than $300 for coverage depending on the state and motorcycle make/model!

Additionally, as mentioned earlier, since older motorcycles are less likely to cause an accident, they have lower premiums.

The cheapest models, on average, tend to have minimum coverage amounts of around 100/300 depending on the state’s old-bike minimum coverage amounts and their age. It is often true for older bikes from the 1980s, ’90s, and early 2000s in particular as well.

Take a look at the annual motorcycle insurance premium by state.

But don’t go for older bikes as they may not be the most efficient or enjoyable. But it certainly provides a comfortable ride towards financial security.

What Factors Affect the Cost of Insurance for Motorcycles? (And Why Older Motorcycles are Cheaper to Insure)

Now, several factors can make relatively expensive insurance for older motorcycles. He3re are the factors that mainly affect insurance prices for individuals:

  1. GEO Location: Studies show that insurance prices vary significantly from state to state. Motorcycle insurance can be hundreds of dollars higher for a biker who drives through states like New York or California. It is because drivers in these high-risk geographies are more likely to have expensive claims from injury and property damage than those in less risky regions of the country. In addition, the demographic view of a state is an important thing why insurance prices are high in some states.
  2. Motorcycle Type and Age: As I have mentioned previously, older motorcycles are less costly in terms of the insurance. So, there’s no need for further breakdown. Moreover, the motorcycle type is another fact of concern. Make sure your vehicle doesn’t look very fancy or offensive. It delivers a view of what kind of personality you hold. As a result, some insurance carriers may not hesitate to raise the price.
  3. Age of Rider: If you are a teenager in a place where accidents tend to happen at a higher rate, your insurance cost may be very high. But don’t worry; I will also discuss the ways of decreasing insurance costs in this article.
  4. Driving Records: The high cost of insurance can be because of your driving record. The more CRASH HISTORY you have, the higher your invoices for insurance will be every year. But this fact varies in different states; as a matter of fact, some locations where lower rates are common charge 100% extra driver’s premium on previous. Also, they charge on claims and ruined license points on historical records. More crash records mean higher road crime risks. As a result, it raises your insurance value.

How Can You Get Cheap Motorcycle Insurance 

Bike insurance can be expensive. You don’t have control over certain things that factor in your price, like the type of bike you own. Still, there are ways to help qualify for discounts and save money! Lowering the cost of your insurance is not easy.

But I believe you can do it by sticking with the basic rules some professional motorcyclists use. This section will focus on the most popular ways of reducing insurance value in different states.

Saving money on insurance as a motorcyclist does not have to be complicated. These ideas can help you save a fortune on your license costs and must-have coverage each year.

I think we have made the question of “are older motorcycles cheaper to insure?”. Now, It’s time to know the facts to decrease the insurance price. Let’s get started!

Purchase Insurance Policies Early: 

It can be an advantage because older vehicles with good credit ratings generally cost less than their younger counterparts. The same goes for people with first-time driver’s status. In this situation, it is easy to get cheaper premiums if you meet all the required requirements from your insurance company.

Lower your limits:

As long as you’ve never been in an accident and have a good driving record, it might be worth lowering your limit from most people’s typical amount for their coverage. The average price range is around $200 per month to something low, like $40. However, You can lower the limit to $40 in this case.

Besides, make sure your motorcycle insurance covers medical bills. You don’t need a separate coverage policy for hospitalization costs, which increases the total cost.

Make your motorcycle Look Normal:

Motorcyclists have discovered it’s good to remove various accessories attached to their bikes as part of their strategy for saving money on insurance. It is a trick to convince the insurance carriers that your motorcycle is older. However, you can add all the accessories after you get insurance approval.

Get Aditional Security:

Adding a security device like an alarm system to your motorcycle can help you get cheaper insurance. For example, You can also get a camera for your license plate to help you protect your motorbike from burglars. It will probably cost you less than $50. However, You should ask your insurance company if they lower the cost this way.

Get No-fault coverage:

 (if offered in your state) The most common way of lowering the cost to insure your motorcycle is by getting a No-Fault or VBR policy while purchasing a vehicle. Riders will save $400-$600 every year because most states only have automotive crashes covered on their automobile policies and not motorcycles accidents. If this doesn’t work, then try the other two ways below:

Get a Compromise Policy: 

If you have an older motorcycle that costs more than $6,000 (or its market price), I doubt if an insurance company will insure it under normal policy conditions. Many younger riders don’t want their older bikes insured at a lower cost. They can’t enjoy some additional perks on comprehensive/collision coverage and reap significant savings in life insurance rates. Thus, YOU have to give up something for your insurance pricing! ONE option is to get a “compromise” policy where you will sacrifice some of the benefits provided by comprehensive or collision coverage in exchange for a discount on your premiums. 

Some Sates With the Less Costly Insurance (All Motorcycles Cheaper to Insure)

Let’s look at some states where not only older motorcycles are cheaper to insure but all types of motorcycles! In addition, you may get high compensation when going through the motorcycle insurance claim process.

Texas – No Policy Fees

Good credit score: $160/year.

Motorcyclist discounts are available for injured riders in Texas.

Michigan – no state policy fee, so insurance is much cheaper.

Montana – No security deposit is required. And motorcycles don’t count as bashed vehicles.

Illinois – you have ample opportunity to purchase a motorcycle and save 5% on your insurance premiums. Currently, the policy amount is $117 for personal motorcycles with savings of 7% off the Personal Licence.

New Hampshire – No security deposits or annual fees required. Motorcycle discounts are available.

Both older and newer motorcycles are cheaper to insure in the above states. If you have furthermore queries related to the question: Are older motorcycles cheaper to insure? Please get in touch with us.


The classification as a classic motorcycle is not determined using the year of production but by criteria such as originality or unique design and performance. One example would be a 1960s Harley-Davidson 'low rider', built with 19 extra inches (48 cm) in length due to its reported name "chopper" proportions.

No, generally, they are not. It depends on both you and your motorcycle's sophistication level, though. For example, if the vehicle type is a 'new' motorcycle – new Bike Insurance will be cheaper than an average or older motorcycle.

There are five ways to lower the cost of your insurance policy:

  1. Purchase Insurance Policies Early.
  2. Lowering Limits.
  3. Make your motorcycle Look Normal.
  4. Get Aditional Security.
  5. Get No-fault coverage.
  6. Compromise Policy.

Yes. Sportbikes are expensive to insure because they have many components or systems that will result in premium charges and sometimes crashes. The motorcycle frame is an essential whole with little value separate from its engine and wheels, making it more prone to accidents.

It is a tricky question to answer. Many factors influence the price you will pay for insurance, both on your motorcycle and with personal property protection coverage in an accident. Your insurance policy varies depending upon several criteria such as age, gender, or intended use for the machine; however, approximately 6% can fluctuate to these variables alone.