After lurking on here for a number of months, I thought it was finally time I actually contributed to the body of knowledge in these forums! The analysis Iâ€™m about to provide comes with a number of caveats. The most important is that this analysis should not be used to get the cheapest premium from your insurer by giving them false information - if you're going to take out insurance, don't lie to your insurance company - you risk having your insurance cancelled (and/or perhaps worse)! Insurance companies price risk. The use information you provide to estimate how much of a risk you present, and based on the payout in the case of an accident/theft (ie the value of your bike if you have comprehensive insurance and they are pricing the expected cost of a theft) they charge you a premium. Vehicle insurance is one of the many examples of what economists call 'information asymmetry'. The insurance company has less information about your characteristics than you do - but instead of collecting every piece of information about you, they choose a few select pieces which can help estimate your risk profile. Things like age, gender, previous accident history are pretty good ways of identifying your risk profile - (ie if you're risk averse or perhaps just lucky/unlucky) - although, were all riding bikes right! Where you keep your bike, what security is fitted and where you live provide good indicators of the probability of theft of your bike. Other things like how often you're going to be riding, your riding experience and whether you've had training as well as whether or not you have finance on your bike are also used by your insurer to help build your risk profile. I have always been curious about how _exactly_ my insurer calculates my risk - for two reasons. Firstly, insurance companies know what they're doing. If they think riders under 20 are twice as likely to crash or have their bikes stolen, that is interesting! Secondly, things like how often I ride, what security is fitted to my bike and where its kept (ie carport, garage, street, etc) are things i _can_ change, and so with enough information about how these affect my insurance premiums, I can perform some (crude) cost/benefit analysis. The problem is insurance companies aren't going to just break it down item by item (for obvious reasons). So I decided to conduct a little experiment. Using the online quote system of one of Australia's insurers, I ran a number of experiments to determine which characteristics affect premiums the most, and how much. Without going into details of the method (its not very interesting) it involves varying one characteristic at a time, and getting a new quote. I then used regression analysis to estimate the effects of each characteristic. Before we continue, another caveat. These estimates apply only to the particular insurer I examined (I would be very surprised if each insurer _didnt_ have their own risk model). They also are only applicable for the one particular sports bike I selected (im not sure if the type of bike â€“ ie cruiser, sports, tourer etc or the value of the bike is the important factor). A quick note about how to interpret the numbers below â€“ they are elasticities, or percentages â€“ compared with the base case. So if I say being blond increased premiums by 20%, this is compared to the base case of black hair. Now to the good stuff!! So, I hear you asking, what caused the (almost) biggest increase in premium? As you would probably expect â€“ being under 20 years old! Effect of age on premiums (compared to base of being 25 years old) :- 18 or 19 = 50% increase 20 = 35% increase 21 = 25% increase 22 = 20% increase 23 = 15% increase 24 = 5% increase 25 = BASE CASE 26 = 6% decrease 27 = 9% decrease 28 = 14% decrease 29 = 19% decrease Being male increased the premium by 5% Parking in the driveway increased the premium by 15% compared with parking in a garage. Parking in a carport increased the premium by 5% compared with parking in a garage. I was refused insurance if I parked my (expensive) bike on the street! Daily use increased the premium by 24% compared with weekend only use. Limited use increased the premium by 5% compared with weekend only use. If I had undertaken any training courses, my premium was reduced by 5%. Having an immobilizer or other security device fitted (didnâ€™t matter what) decreased the premium by 1%. No claim bonus made a very large difference. A 65% no claim bonus reduced the premium by 105% compared with a 0% no claim bonus! Now for some more surprising/interesting results. Modifications designed to increase safety reduced the premium by 6% compared with an unmodified bike, where as non-safety modifications worth $500 increased the premium by 2% and modifications worth $2000 increased the premium by 8%. Financing the bike with a personal loan increased the premium by 16% compared with purchasing outright. Hire/purchase arrangement increased the premium by 14% and a lease arrangement by 4%. Years of driving experience made no difference! Ie this particular insurance company didnâ€™t appear to care how long the policy holder had been riding (for this particular bike at least). Interesting stuff! An insight into insurance premiums! Happy to answer questions. Anyone have any thoughts why a personal loan would increase your premium or why years of driving experience donâ€™t matter on a sports-bike? The above figures are estimates only (and rounded to whole numbers) - they may suffer from specification error. Use at your own risk: caveat emptor!