2009 bike insurance 10% than last year
The Bike Insurer, the World's 1st bike insurance comparison website has released a report showing that bike insurance prices have dropped a further 10% against the same time a year ago.
The study, which compared the prices of 10,000 quotes given in January 2009 and January 2008 showed that whilst the average price of a bike insurance policy was quoted at £211.15 in 2008, that cost had dropped 12 months later to just £190.48.
As I wrote in an earlier blog, there are less new bikes being purchased now, but more used bikes changing hands. My belief is that this drop in insurance cost is due largely to the fact that used bikes represent less of a risk to an insurer as the value is lower than that of a new bike, and additionally that riders are holding onto their bikes longer now instead of selling after the usual average 18 months of ownership.
Indeed, this fact is backed up by the study that showed in January 2008 the average age of a bike quoted on The Bike Insurer website was 4 years and 1 month old, in January 2009 the age is now 4 years and 3 months old. This might not sound like a lot but on average people are holding onto their bikes 5% longer, and this is only the start of the recession.
I fully expect bike insurance prices to drop further in 2009, maybe to a level of around £180 and this will remain static until people have the confidence to start shelling out for new bikes again.
Article by Dan.
