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Why Is Ontario Motorcycle Insurance So Expensive? An Honest Guide

why is ontario motorcycle insurance so expensive

Ontario is known for having some of the highest motorcycle insurance rates in Canada. Many motorcycle enthusiasts in the province wonder why they have to pay more compared to riders in other provinces. 

In this article, we will delve into the factors that contribute to the high costs of motorcycle insurance in Ontario. By understanding these factors, you can make informed decisions to manage your insurance expenses effectively.

Why is Ontario motorcycle insurance so expensive?

Ontario’s No-Fault Insurance System

One of the key reasons for Ontario’s expensive motorcycle insurance rates is its no-fault insurance system. Under this system, regardless of who is at fault in an accident, insurers are obligated to pay out benefits to their policyholders. 

This results in higher costs for insurers, which are subsequently passed on to the consumers in the form of higher premiums. Unlike in other provinces where fault determines insurance coverage, Ontario’s no-fault system adds to the overall cost of motorcycle insurance.

level of benefits

Level of Benefits Received

The level of benefits received by motorcycle accident victims in Ontario is also a contributing factor to the high insurance costs. While the province used to offer robust accident benefits, recent changes have resulted in clawbacks in coverage. 

This means that accident victims may not receive as much compensation for medical expenses, income replacement, or other damages. As a result, insurance companies increase premiums to compensate for the reduced coverage, further exacerbating the overall cost of motorcycle insurance.

Excessive Bodily Injury Claims

Ontario has seen an increase in excessive bodily injury claims, which also contribute to the high motorcycle insurance rates. Insurers have experienced a surge in personal injury claims in recent years, which has taken a toll on their finances. 

While some argue that fraud and abuse are factors behind these excessive claims, the impact on insurance rates is undeniable. Motorcycle owners in Ontario end up paying more to cover the additional costs incurred by insurers due to excessive bodily injury claims.

Regional Factors and Underwriting Practices

Regional factors such as location, crime rates, and theft have a significant impact on motorcycle insurance rates in Ontario. In areas with a high incidence of motorcycle theft, insurance companies are more likely to charge higher premiums to offset the increased risk. 

Additionally, densely populated areas may have higher rates of accidents, leading to higher insurance costs. These regional factors are taken into consideration by insurance companies when determining premium rates.

Underwriting practices also contribute to variations in motorcycle insurance costs across Ontario. Insurance companies evaluate risks differently and have their own methods of setting premium rates. 

Factors such as the rider’s age, riding experience, type of motorcycle, and claims history are assessed during the underwriting process. Additionally, insurers may have different guidelines and deductibles, resulting in varied rates among companies.

The combination of regional factors and underwriting practices ultimately leads to differences in motorcycle insurance costs across Ontario. Riders located in areas with higher crime rates or motorcycle theft may face higher premiums, while those in less densely populated areas may enjoy lower rates. 

It is important for riders to be aware of these regional factors and research different insurance providers to ensure they are getting the best rates for their specific location and circumstances.

Motorcycle Insurance Costs

Tips for Managing Motorcycle Insurance Costs

While Ontario’s motorcycle insurance rates may be high, there are proactive steps you can take to manage and potentially reduce your insurance costs:

  1. Enhance Motorcycle Security: Invest in anti-theft measures such as alarms, locks, and tracking devices. Improved security decreases the risk of theft, making you eligible for lower premiums.
  2. Complete Rider Training Courses: Enroll in recognized rider training courses to enhance your riding skills and demonstrate your commitment to safety. Insurers often offer discounts to riders who have completed such courses.
  3. Bundle Insurance Policies: Consider bundling your motorcycle insurance with other insurance policies you have, such as home or auto. Insurance companies offer discounts for multiple policies with them.
  4. Compare Quotes and Leverage Discounts: Obtain quotes from several insurance providers to compare prices. Different insurers may offer varying rates and discounts. Take advantage of any available discounts, such as loyalty, safe riding, or group affiliations.

Frequently Asked Questions

Why is motorcycle insurance so expensive in Ontario compared to other provinces?

The no-fault insurance system, reduced level of benefits, excessive bodily injury claims, and regional factors collectively contribute to the higher motorcycle insurance rates in Ontario.

How can I lower my motorcycle insurance premiums in Ontario?

Consider enhancing motorcycle security, completing rider training courses, bundling insurance policies, comparing quotes, and leveraging discounts to potentially lower your premiums.

Are there any specialized insurance brokers for motorcycle coverage in Ontario?

Yes, there are specialized insurance brokers who focus on motorcycle coverage in Ontario. These brokers have expertise in finding the best rates and coverage options for motorcycle owners.

What impact does my riding experience have on the cost of insurance in Ontario?

Having more riding experience can positively influence your insurance costs. Insurers typically offer lower premiums to riders with a demonstrated history of safe and responsible riding.

motorcycle theft rates

How do motorcycle theft rates affect insurance prices in Ontario?

Areas with higher motorcycle theft rates tend to have higher insurance prices. Motorcycle owners in these areas should consider investing in additional security measures to mitigate the risk of theft.

What steps can I take to improve my motorcycle’s security and potentially reduce insurance costs?

Installing anti-theft devices, using secure parking facilities, and ensuring regular maintenance can help improve your motorcycle’s security. Taking these steps can potentially lower your insurance costs.


Understanding why motorcycle insurance in Ontario is expensive is crucial for riders looking to manage their insurance expenses effectively. 

Factors such as Ontario’s no-fault insurance system, the level of benefits received, excessive bodily injury claims, and regional factors all contribute to the higher insurance rates. 

By implementing tips like enhancing motorcycle security, completing rider training courses, and comparing quotes, riders can potentially reduce the burden of expensive motorcycle insurance premiums while still enjoying the freedom of the open road.