With the COVID-19 pandemic wreaking havoc with lots of things, it should be no surprise that a lot of new motorcycle riders are having trouble booking the courses and testing they need to get their M2 licenses. With most insurance companies refusing to insure M1 riders, the only option for the summer of 2020 may be to get insurance with Facility Association, the insurer of last resort, through a licensed broker like Mitchell & Whale.
This first riding season will be more expensive than what you could find with an M2, but if you can arrange to get your M2 by the time you renew next year, our brokers will be happy to get you cheaper quotes from other insurers at that time.
If you’ve decided that this is the summer to finally start riding a motorcycle, good for you! Getting out on a bike is an awesome way to experience our great country, and there’s no better way to shake off the COVID isolation blues than to be out and about in the open air.
Sadly, the same pandemic that’s making you want to get out on a bike is also going to make that process a little more complicated…and expensive. You see, most insurance companies won’t insure M1 riders, but it’s usually not been a problem, because before COVID, you could do your M2 test right away, and then apply for insurance with your M2 under your belt.
Today, because of COVID, rider training and testing are subject to long wait times (as long as 90 days), so if you’re waiting for your M2 before you ride on the road, that won’t be this season. The alternative is getting insurance with your M1, but we’ll tell you up front that your first year will be pricey. The only insurance company that will insure M1 riders is Facility Association (through a broker), so we can tell you exactly how much that will cost you.
The following table shows the prices for M1 riders based on the rider’s age and the CCs of the bike.
|CC's||Yearly Premium||Monthly Premium||Age 16-20|
|100 or less||$1434.00/yr||$121.00/mth|
|101 – 400||$7,335.00/yr||$619.00/mth|
|401 – 750||$9,346.00/yr||$789.00/mth|
|751 and up||$11,165.00/yr||$943.00/mth||Age 21-24|
|100 or less||$1121.00/yr||$95.00/mth|
|101 – 400||$5,604.00/yr||$473.00/mth|
|401 – 750||$7,100.00/yr||$599.00/mth|
|751 and up||$8,464.00/yr||$714.00/mth||Age 25 and over|
|100 or less||$766.00/yr||$65.00/mth|
|101 – 400||$3,815.00/yr||$322.00/mth|
|401 – 750||$4,813.00/yr||$406.00/mth|
|751 and up||$5,721.00/yr||$483.00/mth|
*Assuming up to 1 minor ticket last 3 years
**Quoting basic road coverages only. $1,000,000 Liability, NO collision and NO comprehensive
***Assuming a value for the bike of $2,000 – $8,000 ** (very little difference due to price of bike)
There are benefits to getting your M1 insurance from Mitchell & Whale today. The obvious one is that you’ll be able to enjoy the 2020 riding season. The other is that once you’re a Mitchell & Whale customer, we’ll be able to shop for better rates for you when it’s time to renew next year, so long as you get your M2 in the interim. As one of the top motorcycle insurance brokers in the province, we have access to the best motorcycle insurers, and they’ll be happy to insure you once you get your M2 license.
There’s not a lot you can do to save on your premiums as long as you’re riding with your M1. But whenever you’re planning to get your M2, you’ll see considerable savings (probably next year) by completing an approved rider training program.
If you’re thinking that you can buy insurance now with your M1, then cancel it and get cheaper insurance in 3 months with your M2, don’t count on it. The way that motorcycle insurance is priced in Canada is such that you pay 90% of your premiums for the 6 months when you’re most likely to ride. Cancelling after the riding season is not likely to save you much at all, and penalties may apply, so you may actually lose money in the exchange. Your best bet is to wait until your renewal next year.
Just got your M1 licence and want the best insurance rate possible? give us a call, we’ll let you know your options, answer your questions, and get you on the road!
Want to add to this story? Let us know in comments below! Mitchell & Whale is a fast-growing insurance brokerage in Ontario, striving to make insurance _not suck_ one customer at a time. Give us a call today to discuss any of your insurance needs at 1.800.731.2228.