Motorcycles are becoming more and more popular mode of transport for individuals or families. The demand for motorcycles has shot up by more than 7.4% per annum, and moreover by 2013, it is expected by the Motorcycle Industry Council projects that there will be a demand of more than 100 million motorcycles. The demand for low cost motorcycle is the greatest driver of increased sales worldwide.
As demand for new purchases of low cost motorcycles grow, so does the demand for other support industries such as the insurance, bank loans and spare parts. In some countries, specialized banking (loans) and insurance products are increasingly being sought after. Innovative products that are easy to access even in remote rural areas will sell most.
Some factors pushing for the low cost motorcycles insurance include the depressed economy and increasing fuel costs. With the increasing realization the global economy is deeply in recession, individual and companies are desperately seeking cost cutting measures. Since transport is unavoidable cost, introducing use of cheaper transport is becoming more urgent. Even in the US, the gas-guzzlers are reducing in numbers and many are opting for either fuel efficient cars or motorcycles. Low cost motorcycle insurance is one of the factors that would help drive down the overall costs of owning and running a cheaper motorcycle.
Demand for low cost motorcycles insurance is greatest in developing countries such as in Asia, Africa and South America. In these regions, a motorcycle is the more affordable and efficient modes of transport apart from a bicycle. Public transport using motorcycles is increasing. With this increase, there is growing concern over road safety. The governments are pushing for tighter insurance measures. However, given the limited disposable income in these poor countries, low cost motorcycle insurance is necessary.
Low cost motorcycle insurance should, however, not translate to ineffective covers. The insured person should receive the full benefit of being indemnified in the event of an accident or the reason for seeking the cover happening. The responsibility is therefore on the insurance company to make sure that they are in position to pay for claims. A low cost cover that nets in many motorcyclists will provide an adequate pool of funds.
The demand curve for low cost motorcycles is predicted to grow. With this growth, there is an opportunity for growth in demand low cost motorcycle insurance. The entrepreneurs should be quick to cash in.
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