TL;DR: Usage-based motorcycle insurance uses telematics technology to track your actual riding habits—mileage, routes, and behavior—then sets your premium based on how, when, and where you actually ride. Instead of paying a one-size-fits-all rate, you get personalized coverage that rewards safe riders and low-mileage enthusiasts with savings up to 60%. Roamly's flexible approach covers everything from custom parts to track days, ensuring your premium reflects your real riding patterns rather than outdated assumptions.
Usage-based insurance (UBI) tracks your real riding data through telematics devices or smartphone apps to calculate personalized premiums based on your actual behavior, not demographic assumptions. Telematics-enabled policies now account for 22% of motorcycle insurance plans in 2025, reflecting strong growth in usage-based pricing.
According to the National Association of Insurance Commissioners, usage-based insurance is gaining popularity as many auto insurers begin offering it as an option to customers, with new entrants also entering the marketplace.
The system is straightforward: you install a small device in your bike or use a smartphone app that monitors factors like mileage, speed, braking patterns, cornering behavior, and ride timing. Insurance telematics uses a small in-vehicle device or mobile app to capture GPS location, speed, braking, and mileage data, letting insurers set premiums in real time. This data creates a personalized risk profile that replaces the guesswork of traditional insurance pricing.
Instead of paying the same rate whether you ride 2,000 miles or 20,000 miles annually, usage-based insurance adjusts your premium to match your actual exposure. Instead of paying an annual flat fee, your insurance rate is based on your actual mileage. If you ride less, you should pay less, that's simple! For riders who've been overpaying with traditional coverage, this approach can deliver substantial savings.
Modern telematics systems monitor four key categories: mileage patterns, riding behavior, route characteristics, and temporal factors to build accurate risk assessments. The specific metrics vary by insurer, but most systems track:
Mileage and Distance: Your total miles, trip lengths, and riding frequency form the foundation of usage-based pricing. Pay-per-mile insurance is directly tied to the number of miles you drive each month. Through telematics technology, auto insurers can track your mileage and driving behavior to offer up-to-date and accurate rates. This data replaces the estimated annual mileage that traditional policies use.
Riding Behavior: Acceleration patterns, braking intensity, cornering speed, and overall smoothness indicate your risk level. Typically, "Pay How You Drive" programs monitor a handful of variables for a short period of time.
Route and Location: Where you ride affects risk calculations—urban congestion, highway speeds, and parking locations all factor into your profile. Some systems even account for weather conditions and road surface quality during your rides.
Timing Factors: Time of day: When you drive can be as important as how you drive. Night riding, rush hour commuting, and weekend recreational trips carry different risk levels that usage-based systems can precisely measure.
Usage-based insurance delivers the biggest savings for riders whose actual patterns differ significantly from industry averages—especially low-mileage enthusiasts and safety-conscious riders. Now, you don't have to worry about overpaying for your insurance.
Adventure Riders: If you're the type who puts serious miles on touring bikes during riding season but stores them for months, usage-based insurance captures these patterns accurately. Traditional policies assume year-round riding at average levels, while UBI adjusts for your seasonal patterns and long-distance touring style.
Weekend Warriors: Riders who only use their bikes for weekend escapes or occasional track days often see substantial savings. Usage-based coverage eliminates this overpayment by tracking actual usage.
Custom Bike Owners: Usage-based policies can accommodate the higher values of custom builds while still offering mileage-based savings. The amount of custom parts coverage you can add to a basic policy varies by company, and can range from $1,000 to $30,000. When combined with usage tracking, custom bike owners get appropriate coverage without overpaying for miles they don't ride.
Safety-Conscious Commuters: Riders with clean riding records and predictable commuting patterns often qualify for additional behavioral discounts on top of mileage-based savings. These safety courses and responsible rider discounts can stack with usage-based savings for maximum value.
Coverage for track days and custom parts depends on your insurer's specific approach, but progressive usage-based insurers increasingly offer specialized protection for riding enthusiasts. Traditional policies typically exclude track activities, but some usage-based providers take a more comprehensive approach.
Most standard motorcycle policies exclude track events entirely. Track days or competitions: If you ride your bike in races, timed events, speed tests, or on a track, you're typically excluded from coverage. However, specialized coverage exists: This policy provides normal on-road motorcycle insurance coverage PLUS removes the exclusion for 'participating in a track day'.
Some usage-based insurers offer track day coverage as an add-on, recognizing that track riders often demonstrate superior skills and safety awareness in their regular riding. The key is finding insurers who understand that track training often makes street riders safer, not more dangerous. Roamly's approach to motorcycle coverage recognizes this reality, offering flexible policies that accommodate serious riders rather than penalizing them.
Usage-based insurance can excellently accommodate custom builds through specialized coverage options. Cosmetic enhancements, like custom paint, plated trim, or a new seat, are typically insurable under Optional Equipment coverage. The coverage typically includes:
Progressive usage-based insurers often provide more flexibility because their data-driven approach allows them to assess real-world risk rather than relying on broad exclusions.
Usage-based insurance isn't perfect for every rider, and the tracking technology raises legitimate privacy and practical concerns that potential policyholders should consider. However, if you drive more than 12,000 miles per year, you should avoid pay-per-mile insurance programs. You'll likely wind up paying more than you would with a standard auto insurance policy.
Privacy Considerations: Your riding data becomes part of your insurance record, including locations, routes, and timing. While insurers protect this data, some riders prefer not to share detailed movement patterns. The Insurance Information Institute notes that tracking mileage and driver behavior in UBI programs has raised privacy concerns, with some states enacting legislation requiring disclosure of tracking practices and devices.
High-Mileage Penalties: Riders who put significant miles on their bikes—like delivery riders or long-distance commuters—may pay more with usage-based systems than traditional flat-rate policies.
Technology Dependence: The system relies on devices or smartphone apps functioning correctly. GPS issues, app problems, or device failures can create billing disputes or coverage questions.
Behavioral Pressure: Some riders feel stressed knowing their every ride is monitored, which can reduce the joy and freedom that attracts people to motorcycling in the first place.
Variable Budgeting: Unlike fixed premiums, usage-based costs fluctuate with your riding patterns, making monthly budgeting less predictable.
Switching to usage-based insurance involves three main steps: evaluation, comparison shopping, and implementation of tracking technology. When you sign up for pay-per-mile insurance, your insurance company will use a telematics device to track your miles and driving data. Insurers will typically send a device for you to put in your vehicle that communicates with a mobile app.
Step 1: Evaluate Your Riding Patterns Review your actual annual mileage, riding frequency, and typical routes. If you ride less than 8,000 miles annually or have irregular riding patterns, usage-based insurance likely offers savings. Consider your riding style—smooth, defensive riders typically benefit more than aggressive riders. For new riders still developing their skills, understanding which motorcycles work best for beginners can help you choose a bike that also qualifies for favorable insurance rates.
Step 2: Compare Coverage Options. Research insurers offering usage-based motorcycle coverage, paying attention to:
Step 3: Implement Tracking Technology Most insurers offer multiple tracking options: plug-in devices, smartphone apps, or integrated bike systems. No hardware and tracking required. Snap a picture of your odometer every month to pay accordingly. Some companies simplify the process by using odometer photos rather than continuous tracking.
Step 4: Monitor and Adjust Usage-based policies allow you to see how your riding affects your premiums in real-time. Use this feedback to optimize both your coverage and your riding patterns for maximum savings.
Usage-based motorcycle insurance represents a fundamental shift from outdated, assumption-based pricing to fair, data-driven coverage. For riders who've been overpaying with traditional policies—whether you're a weekend warrior, custom bike builder, or safety-conscious commuter—usage-based insurance offers a path to significant savings without sacrificing protection.
Get your personalized motorcycle insurance quote today and see how much you could save by paying for coverage that truly matches how you ride. Don't settle for insurance built around someone else's assumptions—get coverage designed around your actual riding patterns and save money while you're at it.
Roamly Insurance Group, LLC ("Roamly") is a licensed general agent for affiliated and non-affiliated insurance companies. Roamly is licensed as an agency in all states in which products are offered. Availability and qualification for coverage, terms, rates, and discounts may vary by jurisdiction. We do not in any way imply that the materials on the site or products are available in jurisdictions in which we are not licensed to do business or that we are soliciting business in any such jurisdiction. Coverage under your insurance policy is subject to the terms and conditions of that policy and is ultimately the decision of the buyer.
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