Frequently Asked Questions: Pay-By-Mile Insurance Policies

Despite their rise in popularity, there are still many motorcycle owners who are not very familiar with pay-by-mile insurance policies and how these policies work. If you are among this group of individuals, you may find that you have a wide variety of questions regarding these policies and whether or not they may be right for you. Thankfully, getting the answers you need can be as simple as reviewing the frequently asked questions outlined below.

Question: Do Pay-By-Mile Policies Offer The Same Level Of Coverage As Traditional Policies?

Answer: Absolutely! In fact, many motorcycle owners actually find that they are able to afford a higher level of coverage when choosing to purchase a pay-by-mile motorcycle insurance policy since they are only being charged for the amount of time they actually spend on the road rather than paying for insurance coverage that they are not really using.

Question: Do Pay-By-Mile Policies Offer Lay-Up Coverage For The Off Season?

Answer: In short, the answer to this question is no. However, it is important to note that the reason you cannot take advantage of a lay-up period when using this type of policy is because these policies don't require you to downgrade your coverage in order to enjoy lower insurance rates over the off-season. If you choose not to ride your motorcycle at all during any given month, you will not be charged any mileage for that particular month. Instead, you will simply pay a low base rate for the month. In this way, pay-per-mile policies work quite similarly to a traditional lay-up period while still allowing you to remain in control.

Question: Do You Pay A Monthly Premium When Using A Pay-By-Mile Policy?

Answer: Pay-by-mile motorcycle insurance policies do still have a monthly premium attached to them before any mileage charges are assessed. However, this monthly premium is much lower than you would expect to pay with a traditional motorcycle insurance policy.

Question: How Will The Insurance Company Know How Many Miles You Drove In Each Month?

Answer: The process of reporting your mileage each month is really quite simple. While the exact submission process can vary some from one provider to the next, most insurance companies simply require you to upload a picture of your vehicle's odometer each month in order to verify the current mileage. It is important that you do not forget to upload this information since many policies will have a default number of miles that you will be charged for if you fail to provide the necessary information to allow for proper billing. Repeatedly neglecting to complete this step can also lead to your policy being cancelled by the insurance company.