Calculating the motorcycle insurance price according to their risk of accident

Rate of accident among the motorcyclists is very high in Iran and insurance companies cost a lot for these damages. However, motorcyclists’ behavior and their circumstance are not the same, and motorcyclists drive with different risks. In this research, the effect of motorcyclists’ characteristics and their circumstances on their rate of accident is studied, using motorcyclists’ accident reports. It is shown, that, risk of accident varies for different provinces. In addition, it is shown, that age and driving experience have significant effect on the risk of accident. Based on these result, it is suggested, that insurance companies calculate insurance price or its discounts according to the motorcyclists’ characteristics and their habitancy. This can impulse risky motorcyclists to be more cautious and can impulse government agencies to build safer roads. Considering that, different provinces and different motorcyclists have different risk of accident; insurance companies can achieve more profit using unequal pricing policy.