2015 MOTORCYCLE MARKET FACTS

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1 2015 MOTORCYCLE MARKET FACTS

2 TABLE OF CONTENTS 2 Executive Summary 3 Methodology 4 Respondent Profile 5 Market Trends 6 Demographics 12 Market Overview 1

3 EXECUTIVE SUMMARY Foremost Insurance is pleased to present the 2015 Motorcycle Market Facts Study. The primary focus of our research is to better understand the characteristics, attitudes and motivations of the motorcycle owner population. This knowledge is used to help design and implement motorcycle insurance solutions to meet the complex needs of motorcycle owners. The group of motorcyclists completing our survey were 56% male, with more than half in the age category. Forty-four percent have a four year or advanced degree and the average annual household income of our respondents was just under $69k. Harley Davidson was far and away the most popular make among our group of motorcyclists (40%). Sport and Cruisers accounted for 65% of the bikes in the survey. The average model year was 2003 with a purchase price of $8,572. Nearly three-quarters (7) own just a single bike with almost half (46%) expecting to purchase their next motorcycle within the next two years. Seventy-eight percent of motorcyclists in this survey were fully insured, with an annual policy the coverage term of choice. A little over half of our respondents don t ride their bike for a portion of the year, with 4 of owners dropping or altering coverage during the off-season. Seventy-nine percent insure multiple items with their motorcycle carrier. Sixty-three percent of our motorcyclists owned one or more additional recreational product. Foremost knows motorcycle insurance and tailors coverage with motorcycle enthusiasts in mind. Let your local Foremost agent help you choose the right policy for your motorcycle, so you can go out and enjoy the ride while someone else takes care of the paperwork! 2

4 METHODOLOGY Collected 8,811 completed surveys Method Fielded June 4 - June 12, invitations were sent out to members of SSI online survey panel SSI provided pre-targeted panelists from their online consumer panel Sample Must own or be the primary rider of a motorcycle or motor scooter/moped Must be 18 years of age or older 3

5 RESPONDENT PROFILE 9 use at least one form of social media, and 8 are considered heavy social media users Median household income was just under $69k annually and rec-product ownership was 2.9 per household. 44% had a four year or advanced degree. 63% of respondents own more than one recreational product. Age skewed toward younger demographic. 4 of respondents were years old. 4 56% 44% MALE FEMALE

6 MARKET TRENDS 7 own a single motorcycle. Just over half of the respondents ride their bike on a seasonal basis. 4 alter insurance coverage in some way during the off-season. 33% of motorcyclists had $100 or more in customization into their primary bike ($3,047 average). 79% 79% insure multiple products with their motorcycle insurer. Sport (35%) and Cruiser (29%) bikes made up the majority of responses. 5

7 RESPONDENTS BY STATE Washington 207 Oregon 139 California 1,056 Nevada 108 Idaho 56 Utah 84 Arizona 197 Montana 31 Wyoming 58 Colorado 156 New Mexico 53 North Dakota 35 South Dakota 49 Nebraska 59 Kansas 74 Texas 584 Oklahoma 92 Minnesota 135 Iowa 80 Missouri 121 Arkansas 71 Louisiana 118 Wisconsin 199 Illinois 401 Mississippi 41 Michigan 272 Indiana 191 Tennessee 158 Alabama 122 Ohio 332 Kentucky 110 West Virginia 76 Pennsylvania 364 Virginia 242 North Carolina 239 South Carolina 135 Georgia 227 Vermont 80 New York 552 Maine 46 New Hampshire 42 Massachusetts 158 Rhode Island 33 Connecticut 91 New Jersey 215 Delaware 18 Maryland 99 Washington, D.C. 60 Alaska 11 Florida 694 Hawaii 30 6

8 RESPONDENT DEMOGRAPHICS GENDER Base: Total Sample 8,811 44% 56% Male Female AGE 27% 28% 23% 14% ETHNICITY 75% 6% & older 1 9% 5% White Hispanic African American Asian American Indian/ Other Alaska Native 7

9 RESPONDENT DEMOGRAPHICS Base: Total Sample 8,811 EDUCATION 25% 29% 17% 13% 15% Less than High School High School/GED Some College Two-Year College Four-Year College Advanced Degree Degree Degree EMPLOYMENT 58% 10% 7% 7% 6% 5% 4% 3% Employed Employed Retired Self-Employed Homemaker Full-Time Out-of-Work Unable to Out of Work Full-Time Part-Time Student Looking Work/Disabled Not Looking 8

10 RESPONDENT DEMOGRAPHICS SOCIAL MEDIA USAGE Base: Total Sample 8, of respondents have an internet-enabled mobile phone used to access apps. 4 30% 23% 9% 6% 5% 8% Facebook YouTube Twitter Google+ LinkedIn MySpace Flickr Four Square Other I do not use any social media sites SOCIAL MEDIA - FREQUENCY OF EXPOSURE 65% 8 of users visit social media sites at least once per day. 16% 1 Multiple times/day Once per day A few times/week Once per week A few times/week Once per month Less than once/month 9

11 RESPONDENT DEMOGRAPHICS Base: Sample Size 8,811 ANNUAL HOUSEHOLD INCOME 23% 23% 19% Median household income for our respondents was $68, % 10% 5% 4% 3% Less than $25,000- $50,000- $75,000- $100,000- $125,000- $150,000- $175,000- $200,000- $500,000 or $25,000 $49,999 $74,999 $99,999 $124,999 $149,999 $174,999 $199,999 $499,999 more 10

12 RESPONDENT DEMOGRAPHICS RECREATIONAL PRODUCT OWNERSHIP ATV Classic Automobile or Truck Motorized Powerboat Motor Scooter/Moped 20% 19% 19% 28% Antique Automobile or Truck 15% Golf Cart 14% Personal Watercraft/Jet Ski 13% Snowmobile 1 RV Motor Home 10% RV Travel Trailer Mobile Home/Manufactured Home Non-Motorized Boat Sailboat Dune Buggy Modified Street Rod Modular Home 8% 6% 5% 5% 10% 10% 10% Own more than one recreational product Average specialty items owned Motorcycles per household 63% Horse Trailer with Living Quarters 5% 11

13 MOTORCYCLE TYPE Sport 35% Cruiser 29% Touring 15% Dual-Sport Vintage or Antique Three-Wheel Electric or Green Other Don t know/not sure 6% 5% 3% 4% 3% Sport (35%) and Cruiser (29%) made up the majority of responses. 12

14 MOTORCYCLE MARKET SCORECARD MAKE Harley Davidson Honda Kawasaki Yamaha Suzuki BMW Ducati CanAm Triumph Buell Victory/Indian/Polaris KTM Aprilla Other 1 1 7% 6% 3% 2 33% Purchase Price $9,238 Average Model Year 2003 Year Purchased 2008 Average Customization $3,047 13

15 MOTOR SCOOTER/MOPED SCORECARD MAKE Honda 40% Yamaha Suzuki 1 17% Vespa Piaggio Aprilla Other 6% 4% 16% 14

16 MOTORCYCLE PURCHASE DETAIL 29% 25% 46% When do you plan to purchase your next motorcycle? Within the next two years 46% Three to five years 25% No purchase plans 29% How many motorcycles do you own? 7 One 20% Two 4% Three Four Five or more 20% 7 Where did you purchase this motorcycle? 35% 35% 64% 64% Dealership 64% Private Party 35% New Purchase Type 54% Used 46% 15

17 MOTORCYCLE RIDING HABITS & PREFERENCES Base: Total Sample 7,831 Recreation 47% Do you own a trailor used to tow your motorcycle? Yes 35% No 53% It s never towed % 35% Transportation 8% Use it for both equally 4 DAYS RIDDEN PER MONTH 0 Do not ride 3% % % % % 21 or more 15% 16 Our respondents rode their motorcycle an average of twelve times per month. 8

18 MOTORCYCLE RIDING HABITS Year-Round Seasonal 49% 5 of respondents ride their motorcycle seasonally. 5 MILES RIDDEN IN PAST 12 MONTHS 100 miles or less miles 17% 501-1,000 miles 23% 1,001-5,000 miles 33% 5,001-10,000 miles 13% More than 10,000 miles 4% Average Miles Ridden: 2,906 OFF-SEASON INSURANCE COVERAGE No Change in Coverage 58% Altered/Reduced Coverage 25% Not Insured 17% 17

19 MOTORCYCLE ASSOCIATIONS American Motorcyclist Association (AMA) HOG (Harley Owners Group) BMW Motorcycle Owners of America A Brotherhood Aiming Towards Education (ABATE) Christian Motorcyclists Association Riders of Kawasaki Woman on Wheels (WOW) HRA (Honda Riders Association) Riders Association of Triumph Ducati Desmo Owners Club Buell Riders Adventure Group Goldwing Road Riders Association Star Touring and Riding Association Moto Guzzi National Owners Club Royal Star Touring and Riding Association United Sidecar Association Goldwing Touring Association Venture Touring Society Indian Riders Group Another motorcycle association / organization No one in my household belongs to any of these 6% 6% 4% 4% 3% 3% 3% 13% 10% Base: Total Sample 8,

20 2015 MOTORCYCLE MARKET FACTS Foremost and the F logo are registered trademarks of FCOA, LLC, 5600 Beech Tree Lane, Caledonia, MI /16

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