Motorcycle insurance prices are finally beginning to fall after all-time high reached last year

Purchasing insurance for your two-wheeled pride and joy has become eye-wateringly expensive for many, but there could be light at the end of the tunnel as prices are finally beginning to drop for the first time in years. 

• Related: Petrol prices on the rise again

Throughout 2023, insurance premiums continued to skyrocket following two years of price hikes. Data taken from the latest confused.com price index showed that costs for all vehicular insurance types reached an all-time high in December.  

According to our resident comparison site, MCN Compare, the average price paid per annual motorcycle premium at this time reached £444 (December 2023), while drivers insuring their cars were stung with bills approaching £1000. 

Sky high premiums explained

Soaring costs have been blamed, with the Association of British Insurers (ABI) claiming a 35% yearly increase in automotive theft-related cost. This is despite motorcycle theft falling from 24,736 bikes stolen in 2022, to 23,963 in 2023, according to figures provided by both the MCIA (who represent major motorcycle manufacturers in the UK) and action group MAG.

A 43% value rise to replace written-off vehicles compared with five years ago and a 32% hike in overall repair costs for the year proves the point. 

Mervyn Skeet, Director of General Insurance Policy at the ABI, said: “We’re acutely aware of the impact that rising motor insurance premiums continue to have. Rising repair costs and other factors outside of insurers’ control mean there is no single action that could bring down premiums. However, we are determined to do all we can to put the brake on.” 

Despite substantial cost increases, some insurers have boasted massive profits for the period, including Admiral, who saw a 23% increase in group profit at £448.2 million. The extent this was gained through price increases alone is unclear however, as the company expanded their product offerings during 2023. 

Tony Campbell, MCIA CEO, weighed in on the issue, stating: “We are very concerned by the costs of insurance and in some cases renewal premiums not being offered to some riders.  We are currently in dialogue directly with the underwriters and have arranged a roundtable event to discuss how we can help to ensure there is a competitive and attractive market for the both the insurers and riders.”   

Despite the amounts many report paying, prices have in fact gradually lessened consistently throughout this year, and by the end of the first quarter of 2024 the average premium paid was down 10% from the end of last year. Whilst the average motorcyclist paid nearly £450 by December 2023, that figure is now under £400. 

Unsurprisingly, young people are hit with the highest bills with those aged under 24 still paying over a grand on average to insure their motorcycles. Prices fall from there as age increases and by 30, the average premium sold costs £486. By the age of 60, bikers are now typically charged just over £200 for fully comprehensive cover.  

Insurance firm BeMoto point to rising inflation as well as high theft rates. “Inflation means the cost of motorcycle parts and repairs goes up every year and motorcycle theft frequency has increased dramatically over recent years,” the firm added. 

In the latter half of 2023, a petition was raised calling on the Government to establish a commission to investigate insurance prices. It reached over 20,000 signatures however, it was ultimately dismissed, with the Government stating that it “does not intend to intervene in these commercial decisions as this could damage competition in the market.” 

What did you have to say

We asked you what you thought about insurance prices in our #Ride5000miles Facebook group and 95% of respondents surveyed reported that it now costs too much. 

Ian Thomas commented: “It’s getting to the point where I have to choose between the car and the bike, not both.” 

Another commenter, who told us he has been riding for over 40 years, carries over 20 years of no claims and holds IAM advanced certification, said: “My motorcycle insurance has increased to the point where I’m seriously thinking of giving up biking.” 

Not all agreed however, and some have reported that their premium have decreased this year. 

Top tips for keeping costs down

There are of course several things you can do to keep costs to a minimum. It’s unsurprising that ensuring your bike is fully protected from thieves is an effective way to cut prices. Insurer Adrian Flux told MCN that keeping your bike garaged and locked could cut your premium by as much as 25%. 

Louise Thomas, insurance expert at Confused.com urged motorists to shop around, stating: “With prices so high, it’s a very competitive market. So if you look around, there’s likely to be an insurer out there willing to offer a cheaper price.” 

We conducted an insurance quote, using a 40-year-old male teacher as an example, living in Peterborough and riding a 2012 BMW R1200GS with eight years of no claims. Shopping around revealed a £317 difference in prices, with the cheapest quote coming in 45% less than the costliest option.

Expert advice

“The price of motorbike insurance has been affected by the rising cost of parts and labour. So, to get a good deal these days it involves a bit of preparation, planning, and then getting various quotes to make it worthwhile – and never auto-renew until you have looked around for a good price,” Anthony Forchione, insurance expert at MoneySavingExpert, said.

“It’s worthwhile making sure you’re on the electoral roll, as if not the insurers fraud system may think it’s not a legitimate enquiry and quote a higher price or may not provide a quote at all. 

“If you’re unable to store your motorbike in a garage overnight, look at getting an insurer approved tracking system and lock as then it should make the profile more attractive and could get you a possible discount,” the expert continued. 

“Other ways to try and cut the cost is to ask your home or car insurer if they offer motorbike insurance, as they have been known to give a multi-policy discount if you already have a policy with them. 

“When it comes to paying, if possible, avoid doing it monthly as many insurers charge interest for doing so, making it more expensive than paying in one lump sum. If you don’t have this money upfront, you could consider paying for it via a 0% spending credit card with at least 12 months interest free. However, only do this if it’s planned for and affordable and you’re sure you can pay it back by the end of your policy and the 0% period.” 

Forchione added that their research indicated the cheapest time to hunt for quotes was 23 days before renewal. Doing this shows you’re organised and forward thinking, but avoid looking too early, as some insurers won’t quote more than 30 days in advance. 

“Finally, once you have put the above in place, try as many comparison sites as possible, or at least two, to ensure they are not giving different prices with the same insurer.”