Motorcycle insurance industry observers say that industry revenues have risen and will continue to rise in simpatico with gasoline prices. For the next five years, industry experts are predicting that revenues will increase from a bit less than 1 per cent to 1.3 per cent per year to reach $10.4 billion.
Talking about this continual, though admittedly slight, increase, IBISWorld industry analyst Mary Nanfelt, said, “As gas prices increased prior to the recession, many Americans explored alternative forms of transportation that put less pressure on their wallets.”
The increase actually began earlier this century with the dawn of the recession as Americans left their expensive-to-operate cars in favor of cheaper forms of transportation such as motorcycles. However, this migration to bikes has been slightly offset by the movement of owners of upper-end motorcycles away from their costly bikes.
The motorcycle insurance industry is served by the giants such as Allstate and State Farm, the newer med-sized providers like Geico and Progressive and a gaggle of smaller companies that offer targeted insurance services.