Can I buy a motorcycle without insurance in Canada?

Buying your first motorcycle is such an exciting milestone! But before you do, there are a few things to think about. One question you might have is about insurance. Do you need motorcycle insurance right away, even before buying the bike? In Canada, motorcycle insurance is a must, but let's find out if you need it just to make the purchase and what motorcycle insurance is all about.

Do I need motorcycle insurance to buy a motorcycle?

It depends on where and how you're purchasing your motorcycle. If you're buying one from a motorcycle dealership, they may require you to show proof of motorcycle insurance before you leave—particularly if you plan on riding it home. It's illegal in Canada to drive a motorcycle without motorcycle insurance, so the dealership may not let you leave the lot without it. Also, if you take out a loan to finance your motorcycle, chances are extremely high that your lender will require you to have insurance as part of your loan agreement.

However, if you're paying in cash and planning on towing your motorcycle home, say on a trailer or in the back of a pickup truck, then you may be fine if you don't have motorcycle insurance yet. The same goes for buying a used motorcycle—if you're towing it home, you won't need to purchase insurance for it first. Basically, as long as you're buying it outright and not planning to ride it, you don't need motorcycle insurance right away.

That being said, having insurance before you purchase it can be beneficial. For example, if you got into an accident on your way home while towing your motorcycle and it was damaged, your car insurance would cover your car but not your motorcycle. Or if you parked your new motorcycle in your driveway and someone stole it overnight, you wouldn't have help from an insurance company to replace it.

Registering your motorcycle

Once you've purchased your vehicle, you must register it before you can ride it. Registering it gets you your licence plates and vehicle permit. Riding an unregistered motorcycle can lead to serious legal trouble, including having your bike impounded or even losing your driving privileges.

Registering your motorcycle isn’t just a legal requirement—it also serves as proof of ownership and it helps identify your bike. If it’s ever stolen, law enforcement can use the registration details to track it down. Plus, proper registration makes it easier for authorities to identify your motorcycle in case of an accident or other incidents.

To register your motorcycle, you will need to show proof of motorcycle insurance. So, if you had decided not to get insurance for your motorcycle before you purchased it, you will need to do so now in order to register it.

Understanding motorcycle insurance in Canada

There are many myths about motorcycle insurance. But just like car insurance, whether it's seasonal or year-round, motorcycle insurance is a legal requirement in Canada and an important part of motorcycle safety to keep riders protected—and that includes scooters, mopeds, and motor-assisted bicycles, too.

If you want to hit the road on a motorcycle, you’ll need a motorcycle licence, be at least 16 years old, and have the right insurance in place. Think of it as a safety net, not just for yourself but also for your bike, helping to cover you in case the unexpected happens.

Consequences of not having motorcycle insurance

The specific penalty for riding without motorcycle insurance varies depending on which province or territory you live in, but in general, it will result in fines and even licence suspensions.

For example, Getting caught riding without motorcycle insurance in Ontario can lead to some hefty fines—anywhere from $5,000 to $25,000—and penalties like having your driver's licence suspended for up to one year and your motorcycle impounded for up to three months.

On top of that, if you cause an accident while riding without insurance, you would be on the hook for covering the costs associated with the accident, like property damage, medical costs, and legal fees, not to mention covering your own repair or replacement costs.

Do you have to insure a motorcycle year-round in Canada?

Many motorcycle insurance policies are for a full year, but some companies let you spread payments across the whole year, not just during riding season. Where you ride and store your motorcycle plays a role in determining your insurance premium, and your broker will usually factor the snowy months your province or territory experiences each year into the cost. However, some places where the winter season is much longer may offer seasonal motorcycle insurance policies.

Nevertheless, year-round coverage can be a big plus if you have comprehensive coverage, as it protects your bike from non-collision damages even when it’s parked for the winter.

Types of motorcycle insurance coverage

The most basic motorcycle insurance policy in Canada requires third-party liability coverage and accident benefits coverage. Then, depending on where in Canada you live, you may also be required to carry uninsured automobile coverage and direct compensation-property damage (DCPD) coverage. There are also popular optional coverages for motorcycle riders, including collision, comprehensive, and accident forgiveness coverage. Let's break down what these all mean for you:

Third-party liability coverage

Motorcycle accidents can be incredibly dangerous, especially on busy city streets. That’s why having third-party liability coverage is so important. It works a lot like the liability coverage on car insurance—it protects you if you cause an accident and someone sues you for property damage or personal injury caused by the accident.

Let’s say you accidentally hit a car while turning a corner. The liability part of your motorcycle insurance can cover things like your legal fees and the other driver's medical bills and repair costs. In Canada, all motorcycle riders are required to have a minimum amount of third-party liability coverage, but the exact amount depends on your province.

Accident benefits coverage

Getting into an accident comes with a lot of risks. Beyond the property damage, there’s a good chance you could be dealing with injuries—and sometimes, tragically, accidents can even result in death. That’s where this type of insurance steps in. It helps cover you and your family, providing compensation in case the unexpected happens.

Uninsured motorist coverage

A hit-and-run accident is never a good experience. If there aren’t any witnesses, you’ll probably end up paying for the damages yourself. The same goes for getting hit by an uninsured or underinsured driver, even if they stick around. That’s where uninsured automobile coverage can help—it covers property damage and medical expenses in these kinds of situations.

Direct compensation-property damage coverage

If you’re in an accident and it’s not your fault, direct compensation–property damage (DCPD) has your back. This coverage helps speed up the claims process by going through your insurance provider instead of the other party's insurer. This coverage only applies in no-fault insurance provinces.

Collision coverage

Optional collision coverage is there to help cover the cost of damages related to an accident if you collide with another vehicle or stationary object, like a tree, pole, or guardrail. The great thing about this coverage is that it still provides compensation, even if the accident was your fault. If your motorcycle is leased or financed, though, keep in mind that your lender might require you to carry a specific amount of collision coverage.

Comprehensive coverage

Optional comprehensive coverage is like a safety net for your motorcycle when the damage isn’t from an accident. It covers things like hailstorms, fire, theft, and even vandalism. If you live in an area where crime rates are higher, it’s definitely worth considering. Keep in mind, if you’re leasing or financing your bike, comprehensive coverage might be required.

Accident forgiveness coverage

One final type of optional insurance coverage popular among Canadian riders is accident forgiveness. Accident forgiveness is additional coverage that can be added to your motorcycle insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage varies by province

Motorcycle insurance costs in Canada

Motorcycle insurance costs vary significantly all over Canada. For example, in Ontario, motorcycle insurance can cost on average around $1,600 a year whereas in Alberta, the average sits around a few hundred dollars. Basically, Canadians can expect to pay anywhere from a few hundred dollars to over two thousand dollars a year for motorcycle insurance.

Just like car insurance, motorcycle insurance rates are based on risk—the higher the risk, the more you’ll pay. Here’s a breakdown of what might impact your rate:

• Make and model of your motorcycle
• Where you store or park your motorcycle when not in use
• Whether you have completed a motorcycle safety course
• Your age and gender
• What licence class you have
• Where you live and ride
• Your driving record
• Your claims history
• Your coverage and deductible(s)
• Your insurance company

How to save money on motorcycle insurance

No matter how much you’re paying for motorcycle insurance, wouldn’t it be great to lower your rates even more? At BrokerLink, we’re here to help you do just that with some of our best tips for saving on motorcycle insurance. There are plenty of strategies out there to help you reduce your premium—some you might not even know about. Here's our list of helpful tips put together by our experts at BrokerLink:

Enrol in a motorcycle training course

Taking a motorcycle safety course is a smart move—not only does it sharpen your riding skills, but it can also save you money on insurance. Just like with driver’s education, completing a training course could make you eligible for a discount. If you can show proof that you’ve taken an approved course in your province, your insurance provider might lower your premium.

Bundle insurance policies

Bundling your motorcycle insurance with other policies is a great way to keep costs down if you need more than one type of insurance. At BrokerLink, we can help you find insurance providers that offer bundling options for motorcycle policies. Many companies let you mix and match, so you could combine your motorcycle insurance with home insurance or even car insurance for a multi-car insurance discount. It’s an easy way to simplify your coverage and save.

Maintain a good driving record

Your driving record plays a big role in how much you pay for motorcycle insurance, so keeping it clean is very important. Check out our motorcycle riding safety guide —it’s packed with advice on safe and defensive riding habits to help you avoid accidents and infractions. We even have some great tips for sharing the road with other motorcycles.

Buy a motorcycle with a high safety rating

When shopping for a motorcycle, consider looking for a bike with a high safety rating. Motorcycles with low safety ratings or ones known for being stolen usually come with higher insurance premiums. Also, the pricier or faster your bike, the higher the risk—and that means higher premiums. If you’re serious about cutting costs, consider going for a more economical model or even a used motorcycle.

Instal a telematics device on your motorcycle

Just like with cars, motorcycle riders can use a telematics device to help them save on insurance. If you think you’re a safe rider, ask your insurance provider about telematics discounts. Just by installing a device on your bike or using a mobile app on your phone, you can qualify for a lower rate on your motorcycle insurance. Then, if your insurance company sees you're a safe driver, you could qualify for an even lower rate!

Work with a licensed insurance broker

Finally, when navigating the world of motorcycle insurance, having an expert in your corner can make all the difference—and that’s where the team at BrokerLink comes in. Our licensed insurance specialists are here to help you find great coverage at a price that works for you. We’ll make the process hassle-free and do our best to stay within your budget—or even beat it.

Contact BrokerLink today

Do you still have questions about motorcycle insurance or looking for the right policy? Get in touch with BrokerLink! We know that shopping for insurance can feel a bit overwhelming, but we’re here to make it easy. Let us help you find a motorcycle insurance policy that fits your needs and budget. Reach out to us today—we’d love to help!

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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FAQs: motorcycle and insurance in Canada

Do motorcycles need insurance in Canada?

Yes. Like all motorized vehicles, riders are required by law in Canada to have motorcycle insurance if they plan to ride them on public roads. In Canada, motorcycles are required to carry a minimum amount of third-party liability coverage and accident benefits coverage. Then, depending on where in Canada you live, you may also be required to carry uninsured automobile coverage and direct compensation-property damage coverage.

Can I finance a bike without insurance?

It is very unlikely that you can finance a motorcycle without insurance. Most lenders will require you to carry a certain amount of motorcycle insurance as part of your lending agreement.

What is group motorcycle safety?

Group motorcycle safety is about how to ride motorcycles safely on the road in a group.

Can I register a bike without insurance in Ontario?

In Ontario, you’ll need motorcycle insurance to register a plate for your bike, but not to actually take ownership. But without an insurance policy number, you can’t register a plate. That said, you can take the bike home without a plate or insurance—unless it’s financed. In that case, the lender will likely require proof of insurance first.

Will my car insurance policy cover my motorcycle?

No. Every motorized vehicle needs its own liability policy to be legally driven on the road. Therefore, you need a separate insurance policy for your motorcycle.

If you have any questions, contact one of our local branches.