Everything You Need to Know About Ontario Motorcycle Insurance

In Ontario, it’s mandatory to have motorcycle insurance for any motorcycle you ride on roadways. It can protect you from personal liability in the case of an at-fault collision, pay for important medical and rehabilitative care if you or your passenger are injured, and can help you pay for the cost of repairing or replacing your damaged motorcycle.

Before you hit the open road this season, it’s important to make sure that you have Ontario motorcycle insurance. We’ve outlined everything you need to know about motorcycle insurance in Ontario. Even if you drive a moped, motor scooter, or motor-assisted bicycle, this information is still relevant.

What Is Motorcycle Insurance?

Similar to car insurance, motorcycle insurance is legally required in Canada to protect riders. In order to ride a motorcycle in Ontario, you must have a valid M1, M2, M class license, be at least 16 years of age, and have the proper insurance coverage. There are mandatory minimums that all motorcycle riders must get as part of their insurance policy.

What Motorcycle Insurance Covers

Motorcycle insurance policies in general have a lot of the same coverages as other auto insurance policies in Ontario. In order to operate a motorcycle legally, you will need third-party liability, direct compensation, uninsured automobile, and accident benefits coverages. There are also optional coverages you can add to your motorcycle policy.

Types of Motorcycle Insurance

There are different types of motorcycle insurance coverages; mandatory and optional. Mandatory motorcycle insurance, as expected, is the type of insurance that you are required to have, by law. Optional coverages can compensate you for the cost of replacing or repairing your motorcycle following theft, at-fault collisions, or non-collision-related damages.

Mandatory Motorcycle Insurance Coverage

• Third-Party Liability Coverage: This can protect you from being held personally liable in case of injury or damage to others and their property resulting from a vehicle accident.
• Direct Compensation Coverage: This protects you against damage to your vehicle and anything inside in case you get into an accident which you’re not at fault for.
• Uninsured Automobile Coverage: If an uninsured or unidentified driver is at fault, this coverage can provide you with financial compensation for medical costs and damages.
• Accident Benefits Coverage: Financially protects drivers and passengers that get injured or killed in an accident, at fault or not.

Optional Motorcycle Insurance Coverages

• Collision Coverage: Covers the cost of repairing or replacing your motorcycle, up to the actual cash value minus your deductible, if you are in an at-fault collision.
• Comprehensive Coverage: Replace or repair your motorcycle if the damage is caused by theft or attempted theft, damage that occurs through vandalism, fire, falling objects, lightning, explosion, windshield damage, or impact with an animal.
• “All Perils” Coverage: This combines Collision and Comprehensive coverage along with increased theft protection.

What Doesn't Motorcycle Insurance Cover?

Here are some typical motorcycle insurance exclusions:

• Damage and injuries resulting from racing, stunting, demolition contests, riding on a temporary or permanent racetrack, or practice or preparation for these types of contests.
• Damage and injuries while using your motorcycle for a fee, such as delivering food or goods, or transporting passengers for pay.
• Damage and injuries while using your motorcycle within the course of employment.
• Damage and injuries resulting from a criminal act (except for traffic violations).
• Damage and injuries resulting from intentional self-injury.
• Damage and injuries while operating your motorcycle under the influence of alcohol and/or controlled substances, including cocaine, LSD, marijuana, and all narcotic drugs.

How Much Does it Cost to Insure a Motorcycle in Ontario?

The average price of motorcycle insurance in Ontario ranges from $1,500 to $3,500 a year. Like your other auto insurance policy, there are several factors that are considered when determining the cost of motorcycle insurance in Ontario. Some factors include:

• Your age
• Where you live
• Your driving record
• Mileage of the motorcycle (annual estimated mileage of the motorcycle)
• The years of experience you have riding a motorcycle
• The age of the motorcycle
• The value of the motorcycle

Additionally, your other insurance policies and the type of motorcycle you ride may also impact your motorcycle insurance rate. Typically, the more powerful and more expensive your motorcycle is, the higher your insurance costs will be. Some insurance brokers specialize in particular types of bikes such as standard, cruiser, and touring motorcycles, but some are less inclined to cover sport motorcycles or provide coverage under particular conditions. Your Ontario insurance broker will be able to identify any factors that would affect your insurance costs.

Available Discount Offerings

Similar to car insurance, maintaining a good driving record with no violations will help to keep your insurance premium costs down. Additionally, some insurance companies offer driver discounts to save money on your motorcycle insurance policy. There are variations between companies, but offerings often include:

• Rate reduction for people with graduated license class.
• Driver training discount for those who have completed an approved motorcycle safety course.
• Multi-Line discount for those who bundle their insurance policies under one insurance company.

High-Risk Drivers

Being considered a high-risk driver will increase the cost of your motorcycle insurance. Drivers who are considered high-risk pose more of a risk than the average rider in Ontario. An insurance company will look at your driving history to see the number of insurance claims you’ve made, accidents or collisions, traffic tickets, and your license level and age. For example, a driver under the age of 25 is generally seen as more of a risk because they likely don’t have a lot of on-road experience. There is an option to purchase high-risk motorcycle coverage for motorcycle owners that are seen as more of a risk than the average motorist. Your Ontario insurance broker can assist you in determining if this coverage is right for you.

Do You Have to Insure a Motorcycle all year in Ontario?

The location of your motorcycle and where you drive it are taken into consideration when calculating your insurance premium. Typically, your Ontario insurance broker will account for the several months of snow Ontario has in a year. Each motorcycle policy is written on a 1-year basis, however, some companies will allow you to pay throughout the entire year, rather than just the riding season.

With the arrival of spring, many motorcyclists are getting ready for their first motorcycle ride of the season. Before heading out for the season, we recommend refreshing yourself with some important spring maintenance checks and hand signals.

Contact your Ontario insurance broker today to ensure you are properly covered under your motorcycle insurance policy.