Buying Motorcycle Insurance When You Have Bad Credit

May 24, 2021

Bad credit for bikers is generally treated the same as bad credit for other vehicle drivers. And while it may be harder to find cheap motorcycle insurance rates when you have bad credit, it’s not impossible. woman on motorcycle smiling at camera

Why Do Insurance Companies Consider Credit Scores?
Credit scores are seen as a personal level of responsibility. Insurance companies want to know you’re reliable and that you’ll pay your insurance on time. A bad credit score can imply that you’re more likely to file a claim, which the insurance company accounts for in your premium cost.

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

Poor credit scores are between 300-579. If you don’t know your credit score, you can complete free online credit raters 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. Check your state’s motorcycle insurance laws before purchasing coverage.

How Much is Motorcycle Insurance?
Motorcycle insurance costs average about $702 a year. This number varies per state and depends on other factors such as age, motorcycle type, amount of coverage, driving record and more.

How to Save Money on Motorcycle Insurance if You Have Bad Credit
There are different ways you can save on motorcycle insurance. Be sure to shop around and consider insurance agencies that forgive bad credit. Other ways to save include:

Boost your credit score. Pay bills on time, pay off credit cards and catch up with debt to boost your score.
Only purchase minimum coverage. 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. If you’re a member of a motorcycle club, you can often get discounts. There’s also an infrequent rider discount for bikers who don’t use their motorcycle as their main mode of transportation.