Motorcycle Insurance Reimagined: Meet VOOM Pay-per-Mile Insurance

Motorcyclists come in all shapes, sizes and tribes, but if there’s one thing we can all agree on, it’s that we hate paying a lot for motorcycle insurance. Sure, we grudgingly accept that it’s important to be 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 good 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 how much customers ride their bikes. Instead of an annual flat fee, VOOM charges a low monthly base rate, plus a few cents for every mile ridden.

Who would benefit from VOOM’s pay-per-mile rates?

Since VOOM’s 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 sits parked in the garage for the winter, VOOM charges only the minimum base rate while still providing coverage for theft or damage.

At the moment, VOOM only offers motorcycle insurance in six states: Arizona, Illinois, Indiana, Iowa, Ohio, and Wisconsin. Riders in Green Bay will probably see more of a benefit than someone living in Phoenix and rides year-round.

Iron butt riders would probably come out ahead with a more traditional system, but riders who put in less than 2,000 miles a year may see lower costs with VOOM. Costs vary based on coverage options, but VOOM claims riders who put in less than 2,000 miles can save up to 60% compared to more traditional insurance.

VOOM may also be a good option for riders who own multiple bikes. If you have one motorcycle that handles most of your mileage, but a second or third bike that gets ridden much less, it may make sense to use VOOM for those motorcycles.

If you want to see how usage-based insurance compares to your current coverage, VOOM has a savings calculator on its 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 provide?

VOOM offers three different policy packages. The basic Rider’s Essentials package includes standard coverage with liability coverage for bodily injury, third party property and uninsured motorist coverage.

The Popular package offers higher liability coverages with collision 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 tracking devices to measure miles ridden, VOOM only asks riders to send in a picture of their odometers every month.

There’s no need to install any hardware on your motorcycle, and fewer privacy concerns to worry about. Once a policy is activated, VOOM sends a text message with a unique link for uploading photos.

VOOM will also send reminders every month to get the latest odometer readings. If you forget to send in a photo on time, VOOM will charge a default amount, and then make adjustments once you send in your next odometer reading.

For more information, visit voominsurance.com.

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