Motorcycle Insurance Industry Statistics 2024: What Every Rider Needs to Know
Barry Elad
Updated · Nov 27, 2024
Picture this: You’ve just bought the motorcycle of your dreams, ready to feel the wind in your face and the freedom of the open road. But before the thrill, there’s a crucial question to answer—how will you protect your investment? With motorcycles becoming increasingly popular in the U.S. and globally, motorcycle insurance has evolved from a straightforward policy into a nuanced and critical sector. Whether you’re a seasoned rider or a new enthusiast, understanding motorcycle insurance trends for 2024 can help you make informed choices while maximizing coverage and minimizing costs.
Editor’s Choice: Key Insights and Trends
- The global motorcycle insurance market reached an estimated $8.3 billion in 2023 and is expected to grow at a CAGR of 4.7% from 2024 to 2028.
- U.S. motorcycle insurance premiums saw a 3.5% increase in 2023 due to rising repair costs and demand.
- Electric motorcycles are carving out their niche, leading to a 20% growth in specialized insurance policies for electric vehicles.
- A significant 40% of motorcycle insurance claims in 2023 were related to collision coverage, reflecting an uptick in road use and accident rates.
- Online sales channels for motorcycle insurance expanded, now accounting for 25% of all policies sold as of 2023.
- Progressive and GEICO dominate the U.S. market, together holding a 45% market share in motorcycle insurance policies.
- Riders under 25 years of age pay, on average, 30% more in premiums compared to older demographics due to higher risk assessment.
Motorcycle Insurance Market Dynamics
- Market size for motorcycle insurance in the U.S. is projected to surpass $2 billion by the end of 2024, driven by increasing bike sales and mandatory insurance regulations.
- Premium growth rates are notably higher in urban areas, with a 5% annual increase, as cities experience a rise in motorcycle usage.
- Motorcycle theft impacts insurance rates, with nearly 50,000 bikes stolen in the U.S. in 2023, causing premiums to spike in high-theft regions.
- Comprehensive coverage demand surged by 8% in 2023, as more owners sought protection beyond basic liability.
- Short-term insurance policies have become popular among seasonal riders, with a 12% rise in demand for flexible coverage in 2023.
- Advances in telematics allow insurers to offer usage-based insurance, and in 2024, 15% of new policies are expected to include telematics tracking.
- Claims for medical expenses now constitute 35% of all claims due to rising healthcare costs associated with motorcycle accidents.
Motorcycle Insurance Market Segmentation
- Urban vs. Rural: Urban riders face premiums that are 20-25% higher than their rural counterparts, attributed to greater traffic risks and accident rates.
- Type of Bike: Insurance rates for sport motorcycles are typically 18% higher than standard motorcycles due to their increased performance and higher accident rates.
- Age Group: Riders aged 35-50 tend to secure the most favorable rates, benefiting from low-risk assessments by insurers.
- Experience Level: New riders (under 1 year of experience) pay an average premium that is 25% higher than those with 5+ years on the road.
- Policy Bundling: 25% of policyholders bundle motorcycle insurance with other products like auto or home insurance, saving up to 15% on premiums.
- Gender: Male riders generally face 10% higher premiums than female riders due to statistical differences in claim frequency and accident rates.
- Seasonal Policies: Short-term policies are preferred by 30% of riders in regions with severe winters, reducing their yearly insurance costs.
| Segment | Premium Difference/Characteristic |
| Urban vs. Rural | Urban premiums 20-25% higher |
| Sport Motorcycles vs. Standard | Sport motorcycles 18% higher premiums |
| Age Group (35-50) | Most favorable rates |
| Experience Level (<1 year) | 25% higher premiums |
| Policy Bundling | 25% of policyholders, up to 15% savings |
| Gender | Male premiums 10% higher |
| Seasonal Policies | Preferred by 30% of riders in cold regions |
Insurance Type Insight
- Liability coverage remains the most common insurance type, with 85% of U.S. motorcyclists opting for this minimum requirement, primarily to comply with state laws.
- Comprehensive and collision coverage has gained traction, with 40% of policyholders now opting for these to cover theft and damage beyond accidents.
- Policies with uninsured/underinsured motorist coverage account for 30% of all motorcycle policies due to increased awareness of uninsured riders on the road.
- Medical payments (MedPay) insurance has seen a 12% increase in adoption, covering medical expenses regardless of fault in an accident.
- Custom parts and equipment coverage is essential for 20% of riders, especially those with modified or vintage bikes, as it covers non-standard parts in case of damage.
- Roadside assistance add-ons have surged by 15% year-over-year, with riders seeking support for breakdowns, particularly in remote areas.
- Gap insurance, covering the difference between a bike’s value and outstanding loan balance, is chosen by 10% of financed motorcycle buyers to avoid financial loss if their bike is totaled.
| Insurance Type | Percentage of Policyholders |
| Liability coverage | 85% |
| Comprehensive and collision coverage | 40% |
| Uninsured/Underinsured motorist coverage | 30% |
| Custom parts and equipment coverage | 20% |
| Gap insurance | 10% |
Distribution Channel Insight
- Digital platforms are dominating the sales landscape, with 40% of motorcycle policies purchased online, reflecting a growing preference for digital convenience.
- Insurance brokers still play a significant role, especially for complex policies, handling 35% of policy sales due to personalized service offerings.
- Direct insurance sales through company websites or customer service centers constitute 25% of the market, attracting riders seeking quick access without intermediaries.
- Mobile app usage for policy management and claims saw a 25% increase in 2023, as major insurers optimized mobile experiences for on-the-go policy handling.
- Comparison sites like The Zebra and Policygenius account for 15% of online insurance purchases, as consumers increasingly use them to find competitive rates.
- Social media marketing has proven effective, with 10% of policy purchases originating from ads or promotions seen on platforms like Facebook and Instagram.
- Insurance at point-of-sale (POS), such as through motorcycle dealerships, represents 8% of policy sales, appealing to new buyers for instant coverage options.
| Sales Channel | Percentage of Policies Sold |
| Online/Digital platforms | 40% |
| Insurance brokers | 35% |
| Direct insurance (websites/customer service) | 25% |
| Comparison sites | 15% |
| Social media marketing | 10% |
| Point-of-sale (motorcycle dealerships) | 8% |
Top Motorcycle Insurance Companies and Their Product Offerings
- Progressive leads the U.S. market with 23% of policies, offering popular add-ons like total loss coverage and custom parts replacement.
- GEICO holds a 22% market share, known for affordable liability policies and efficient digital services.
- State Farm commands 17% of the market, standing out with robust bundle options for customers who combine motorcycle and auto policies.
- Allstate covers 15% of policyholders, focusing on customizable coverage with benefits like accident forgiveness.
- Nationwide offers specialized motorcycle coverage and has an 8% market share, appealing with unique add-ons like OEM parts replacement.
- USAA, serving military personnel and families, has 5% of the market and is praised for discounted rates and exceptional customer service.
- Esurance provides an array of online tools for self-service, holding 3% of the market and catering primarily to tech-savvy riders.
Competitive Landscape
- The U.S. motorcycle insurance market is highly competitive, with four major players (Progressive, GEICO, State Farm, and Allstate) holding approximately 77% of the market share collectively.
- Price competitiveness remains a key driver, as 60% of riders cite affordability as their primary reason for choosing a policy provider.
- Customer service is increasingly valued, with 35% of policyholders willing to pay slightly higher premiums for responsive claims handling and support.
- Insurers focusing on digital innovation are gaining traction; 45% of younger riders (ages 18-30) prefer companies with easy-to-navigate apps and digital tools.
- Usage-based insurance (UBI) models are anticipated to disrupt the market further in 2024, as telematics adoption increases among insurers.
- Smaller, regional insurers are capitalizing on niche markets, such as electric motorcycles, capturing 7% of the total market with tailored coverage options.
- Discounted bundle packages are popular, with 30% of riders choosing insurers that offer bundled discounts on other policies like auto or home insurance.
Motorcycle Insurance Market Regional Overview
- California is the largest market for motorcycle insurance in the U.S., with over 850,000 registered motorcycles in 2023, leading to higher insurance demand.
- Florida follows closely, accounting for over 600,000 motorcycles and unique coverage options for frequent natural disaster events.
- Texas ranks third, with approximately 500,000 registered motorcycles and significant demand for year-round policies due to the mild climate.
- Midwestern states report the lowest average premiums, with a 10-15% lower rate compared to the national average, partly due to reduced accident frequency.
- Northeastern states like New York and Pennsylvania see higher premiums due to urban traffic density and higher theft rates.
- In western regions, policies often include add-ons for natural disaster coverage, especially in wildfire-prone areas.
- Southeastern U.S. shows increasing adoption of seasonal policies, with 25% of riders opting for coverage only during peak riding months.
Impact of Technological Advancements
- Telematics integration in motorcycle insurance is expected to grow, with 20% of policies forecasted to feature usage-based adjustments by 2025.
- Artificial intelligence (AI) is streamlining the claims process, reducing average claim processing time by 30%, and improving user satisfaction.
- Mobile apps with GPS tracking have become standard, with 80% of major insurers offering apps that assist with real-time location and emergency services.
- Smart helmets and wearable technology are enhancing rider safety and could influence premium reductions by 5-10% for riders who use these technologies.
- Blockchain technology is under exploration for verifying and securely sharing claims data, with pilot programs by three major insurers in 2024.
- Predictive analytics help insurers more accurately assess risk, with 15% of new policies using these insights to tailor premiums and prevent fraudulent claims.
- Electric motorcycles are benefitting from specialized insurance products, with some insurers offering up to 10% discounts for electric vehicle (EV) adoption.
Geographical Distribution of Motorcycle Registration
- California and Florida lead the U.S. in motorcycle registrations, together accounting for nearly 30% of all motorcycles on American roads.
- Texas, Pennsylvania, and Ohio also have high motorcycle ownership, collectively covering about 15% of the national total.
- Rural regions show higher per capita motorcycle ownership, where motorcycles often serve as primary transportation due to limited public transit.
- Urban registrations in cities like Los Angeles, New York, and Chicago are high, yet these areas face significantly higher premiums due to traffic and theft risks.
- Pacific Northwest states report increasing registrations, driven by outdoor tourism and rising interest in adventure motorcycles.
- Southern states like Georgia and North Carolina see seasonal variations, with 15-20% more registrations during warmer months.
- Midwestern states have lower overall registrations, but motorcycles are used extensively for leisure riding, especially in states like Michigan and Ohio.
Emerging Trends in Electric Motorcycle Insurance
- Electric motorcycle policies have grown by 25% in the last year, spurred by a rise in eco-conscious riders and EV incentives.
- Policy discounts for electric motorcycles average around 10%, as insurers support green initiatives and lower maintenance costs.
- Battery replacement coverage is now offered by 25% of insurers, covering high-cost battery replacements that are unique to EVs.
- Charging station locator tools are becoming a feature in insurance apps, helping EV riders locate convenient charging stations.
- Specialized EV roadside assistance is gaining traction, with services including emergency charging, provided by 10% of major insurers.
- Electric motorcycles are increasingly popular among urban riders, with 40% of electric bike registrations concentrated in major cities.
- Environmentally-focused marketing is appealing to millennials and Gen Z, with 55% of new EV policyholders in these age groups.
Factors Influencing Motorcycle Insurance Rates
- Age of the Rider: Younger riders, particularly those under 25 years old, face premiums up to 30% higher due to their higher risk profile.
- Experience Level: Riders with less than 2 years of experience typically pay 20-25% more for insurance, as they’re considered at a higher risk of accidents.
- Type of Motorcycle: Sport and high-performance bikes come with insurance rates 15-20% higher than standard or cruiser motorcycles due to their speed and accident rates.
- Location: Urban areas often carry 25% higher premiums than rural locations due to higher traffic density, accident likelihood, and theft rates.
- Annual Mileage: Riders with higher annual mileage, especially those exceeding 10,000 miles per year, tend to pay higher premiums as more time on the road increases accident risk.
- Riding Record: A history of traffic violations or accidents can increase premiums by up to 50%, depending on the severity and recency of infractions.
- Motorcycle Modifications: Custom modifications can raise premiums by 10-15% to account for the increased repair and replacement costs associated with non-standard parts.
- Safety Equipment: Riders who use advanced safety gear, like anti-lock braking systems (ABS), often qualify for 5-10% discounts as insurers recognize these features can reduce accident severity.
- Coverage Limits: Higher coverage limits naturally increase premiums. For instance, opting for $500,000 liability coverage versus a $100,000 limit can raise premiums by 15-20%.
- Multi-Policy Discounts: Bundling motorcycle insurance with other policies, like home or auto, can save policyholders 10-15% on their overall insurance costs.
Recent Developments
- Rising Premiums: Motorcycle insurance premiums have increased by an average of 5% in 2023, largely due to inflationary pressures, higher repair costs, and increased claim frequency.
- Growth in Telematics: The adoption of telematics in motorcycle insurance is growing, with 10% of insurers now offering usage-based discounts to riders who opt into tracking mileage and riding behavior.
- Electric Motorcycle Policies: Policies specifically tailored for electric motorcycles saw a 30% growth last year, with insurers adapting coverage options for battery replacement and charging assistance.
- Enhanced Digital Claims Processing: Many insurers are now using AI-driven claims systems, reducing claim processing times by 30% on average, which significantly improves customer satisfaction.
- Increased Focus on Theft Coverage: Motorcycle theft has surged, prompting 15% more riders to add comprehensive coverage to protect against theft, especially in high-risk urban areas.
- Policy Add-Ons for Custom Bikes: Due to growing interest in custom motorcycles, insurers now offer specialized add-ons for modifications, which cover non-standard parts and custom equipment.
- Discounts for Safety Courses: Many insurers have expanded discounts for riders who complete advanced safety courses, offering up to 10% off for certified training.
- New Insurer Entry: Smaller, regional insurers have entered the market, offering competitive rates and flexible coverage options, particularly in the electric and high-performance motorcycle segments.
- Seasonal Insurance Packages: With increased demand for seasonal riding coverage, 20% of insurers now offer packages allowing riders to adjust their coverage during off-peak months, reducing costs for seasonal riders.
- Expansion of Mobile App Features: Mobile apps now provide more than basic account management, with GPS-enabled emergency services and roadside assistance tools growing in popularity among major insurers.
Conclusion
As the motorcycle insurance industry evolves in 2024, it is clear that traditional policies are adapting to new dynamics—whether it’s technological innovation, regional shifts, or the rise of electric motorcycles. These changes present a landscape that’s not only more diverse but increasingly accessible to a range of riders, from urban commuters to eco-conscious travelers. Whether you’re insuring a classic cruiser or the latest electric model, staying informed on these trends can help you find the right coverage for both peace of mind and financial security on every ride.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
