Motorcyclists come in all shapes, sizes, and tribes, but if there’s one thing we all agree on, it’s that we hate paying high prices for motorcycle insurance. Of course, we reluctantly accept the importance of being properly insured, but the less we have to pay, the better.
Traditional insurance plans charge a flat fee that covers you for a year, which is fine if you ride a lot. Weekend riders, or those who live somewhere with shorter riding seasons get less value out of it, as they pay about as much as someone who rides much more frequently.
In 2021, a new InsurTech company called VOOM introduced a new alternative, with a usage-based insurance offering that bases motorcycle insurance costs on the amount of bikes customers use. Instead of an annual plan, VOOM charges a low monthly base rate, plus a few cents for each mile flown.
Who would benefit from VOOM’s per-mile rates?
Since VOOM costs vary based on mileage, those who don’t ride a lot, or those who live in areas with a lot of bad weather. If a motorcycle is parked in the garage for the winter, VOOM only charges the minimum base rate while providing coverage for theft or damage.
At this time, VOOM only offers motorcycle insurance in six states: Arizona, Illinois, Indiana, Iowa, Ohio, and Wisconsin. Green Bay cyclists will likely see more benefits than someone living in Phoenix and riding year-round.
Iron runners would likely come out on top with a more traditional system, but runners who clock less than 2,000 miles per year may see lower costs with VOOM. Costs vary depending on coverage options, but VOOM claims that runners who cover less than 2,000 miles can save up to 60% compared to more traditional insurance.
VOOM can also be a good option for riders who own multiple bikes. If you have one bike that handles most of your mileage, but a second or third bike that runs much less, it might be a good idea to use VOOM for those bikes.
If you want to see how usage-based insurance compares to your current coverage, VOOM has a savings calculator on his website to provide a rough estimate of how much you could save if you switched to a pay-per-mile system.
What kind of coverage does VOOM offer?
VOOM offers three different font plans. The Rider’s Essentials base package includes standard coverage with bodily injury liability coverage, third party property, and uninsured motorist coverage.
The Popular package offers higher liability coverages with collision coverage and comprehensive coverage plus medical expenses. The extended package offers even higher coverage.
Do you need to install a transponder or other types of hardware?
While some usage-based insurance companies use trackers to measure miles traveled, VOOM only asks runners to send in a photo of their odometer each month.
There is no need to install any hardware on your motorcycle and fewer privacy issues to worry about. Once a policy is activated, VOOM sends a text message with a unique link to upload photos.
VOOM will also send reminders each month for the latest odometer readings. If you forget to submit a photo in time, VOOM will charge a default amount and then make adjustments once you submit your next odometer reading.
For more information, visit voomassurance.com.