Motorcycle Insurance Basics

What you need to know as an Ontario rider

Confused About Motorcycle Insurance?

Read the basics of what you need for insurance, as well as optional coverage

Legally operating a motorcycle on the road in Ontario is very similar as for a car. Just as you are required with a car, you must have a valid licence plate and registration, a valid motorcycle licence, and proof of insurance. The insurance minimum is the same for a motorcycle as it is for a car; $200,000.00 in liability coverage, and comprehensive coverage is not legally required. While comprehensive coverage is not required by law, if you have financed your motorcycle, your finance agreement may require that you maintain comprehensive coverage to protect the asset against loss, theft, fire, or collision damage.

Motorcycle insurance is regulated in Ontario, and as such, must be purchased through a licensed professional or organization. There are three main ways to purchase insurance:

  1. Broker
  2. Agent
  3. Direct writer

While you can purchase the same legally required liability coverage through all sales channels, a broker is the only sales channel that deals with multiple insurance companies, and can shop the market to provide you the best rate out of the companies shopped.

Every year, the rates charged by your insurance company must be approved by the Financial Services Commission of Ontario (FSCO). The insurance companies decide based on their expected expenses how much money they must bring in through premiums to cover the expected claims. After the insurance companies have determined their premiums, they submit them to the FSCO, and the FSCO must approve any changes, whether to increase or decrease the rates. As such, insurance rates will vary from one company to the next, based on the company's risk pool. A broker will find the company that has been approved to set the best rates for your particular rider profile.

To find out more about how a broker can be the best way to buy your insurance, learn the difference between an insurance agent and an insurance broker.