Embarking on the journey of motorcycling in is exhilarating. However, before you hit the open road, it’s crucial to understand the province’s motorcycle insurance landscape. This guide will walk you through the essentials, ensuring you’re well-prepared and adequately protected.

Understanding Ontario’s Motorcycle Licensing System

Ontario employs a graduated licensing system for motorcyclists, designed to enhance rider safety and competence.

M1 License

• Written Test: Your journey begins with the M1, a written test assessing your knowledge of road signs and motorcycle practices.
• Restrictions: With an M1, riders face certain limitations, such as daytime riding only and zero alcohol tolerance.

M2 License

• Road Test: After holding the M1 for a minimum of 60 days, you can attempt the M2 road test. Most go through training courses to complete the M2 license as it makes it easier, the program also offers a lot of practice and tips. 
• Benefits: The M2 license offers greater riding flexibility, including nighttime riding and carrying passengers.

Full M License

• Advanced Test: Achieving the full M license requires passing a comprehensive road test, available after 22 months with an M2 (or 18 months if you complete an approved safety course). This is also offered through training programs similar to the M2 license. 

Mandatory Motorcycle Insurance Coverage in Ontario

In Ontario, motorcycle insurance isn’t just a recommendation, it’s the law. Before registering your bike, you must have valid insurance coverage.

Basic Coverage Requirements

1. Third-Party Liability: Protects you if you’re held responsible for injuring someone or damaging property. The minimum required coverage is $200,000, but higher limits are often advisable and most companies typically offer $1,000,000 as a minimum. You can legal ask for less, but it would drag the process of setting up the policy. 
2. Accident Benefits: Provides compensation for medical expenses, rehabilitation, income replacement, and more, regardless of fault.
3. Uninsured Automobile Coverage: Offers protection if you’re involved in an accident with an uninsured driver or in a hit-and-run scenario.
4. Direct Compensation Property Damage (DCPD): Covers damage to your motorcycle when another driver is at fault, streamlining the claims process. Please read our blog on DCPD. 

Factors Influencing Insurance Premiums

Several elements affect the cost of your motorcycle insurance:

• Riding Experience: Newer riders often face higher premiums due to limited experience.
• Type of Motorcycle: High-performance bikes or those with larger engine capacities typically come with increased insurance costs. Is it a supersport, sport, cruiser, etc.? 
• This is perhaps one of the most important factors, that’s why you need to quote a few bikes before putting down the deposit and finally purchasing your bike. The type of bike you purchase can drastically change the overall cost of insurance. Talk to us so we can help you find the right bike. 
• Location: Urban areas with higher traffic densities may lead to elevated premiums compared to rural regions.
• Driving Record: A history of traffic violations or accidents can adversely impact insurance rates.

Tips to Reduce Your Insurance Costs

While premiums for new riders can be steep, there are strategies to help mitigate costs:

Complete a Recognized Motorcycle Training Course

Enrolling in an approved safety course not only hones your riding skills but can also make you eligible for insurance discounts. Many insurers recognize the value of formal training and offer reduced rates to graduates. 

Upgrade Your License Promptly

Advancing from an M1 to an M2 license within 60 to 90 days can lead to significant premium reductions. Further progression to a full M license may offer additional savings. 

Choose Your Motorcycle Wisely

Opting for a bike with a smaller engine displacement or one classified as a standard or cruiser, rather than a high-performance sportbike, can result in more affordable insurance premiums. Even with the same class of motorcycles, there are completely different ratings for certain models. Best practice is to ask for multiple quotes on different models. 

Bundle Your Policies

Many insurance providers offer discounts when you combine multiple policies, such as home and motorcycle insurance. Bundling can lead to overall savings on your premiums. 

Common Pitfalls to Avoid

Being aware of potential missteps can save you time and money:

• Riding Without Insurance: Operating a motorcycle without valid insurance is illegal in Ontario and can result in severe penalties. License suspensions, and crazy amounts of fines, among others. 

• Cancelling Insurance During Off-Season: While you may think it might seem cost-effective to cancel your policy during winter months, it doesn’t quite work that way. Every insurance company can have their guidelines when it comes to the cancellation of motorcycles or seasonal vehicles. It’s best to ask and educate yourself with cancellation tables, short-rate cancellation percentages, and more. Cancelling your policy can also leave you unprotected from potential damages while in storage. Additionally, maintaining continuous coverage can contribute to lower premiums over time as you build loyalty and avoid gaps in insurance. Please read our blog on Motorcycle Cancellations. 

• Neglecting to Shop Around: Insurance rates can vary widely between providers. It’s beneficial to compare quotes to ensure you’re receiving the best coverage at a competitive price. You need to contact at least 3-4 different providers. 

Talk to your agent, educate yourself, ask questions, and read the documents you receive. You need to make sure you have the appropriate coverage and review your policy annually. You may be over-insuring yourself on an older bike with all the extra coverages. Spend a few minutes every year to review, saving even $100 per year is $100 you didn’t have!