2015Company Condential - Do Not Distribute repared by Foremost Marketing esearch (2015), 616.956.2514 2 Foremost Insurance is pleased to present the 2015 Motorcycle Market Facts Study

2015MOTORCYCLE MARKET FACTS

Company Confidential - Do Not Distribute Prepared by: Foremost Marketing Research (2015), 616.956.2514

1

TABLE OF CONTENTS

2 Executive Summary 3 Methodology 4 Respondent Profile 5 Market Trends 6 Demographics12 Market Overview


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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 25-49 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 (72%) 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 42% 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!

EXECUTIVE SUMMARY


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METHODOLOGY

Collected 8,811completed surveys

Method

Fielded June 4 - June 12, 2015 Email 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


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RESPONDENT PROFILE

Median householdincome was just under

$69k annually andrec-product ownershipwas 2.9 per household.

92% use at least one form of social media, and 81% are considered heavy social media users

63% of respondentsown more than one

recreational product.

56% 44%MALE FEMALE

44% had a four yearor advanced degree.

Age skewed towardyounger demographic.41% of respondentswere 18-34 years old.


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33% of motorcyclists had $100or more in customization intotheir primary bike ($3,047 average).

72% own a single motorcycle.

79% insure multipleproducts with theirmotorcycle insurer.

Just over half of the respondents ridetheir bike on a seasonal basis. 42%alter insurance coverage in some wayduring the off-season.

Sport (35%) and Cruiser (29%) bikesmade up the majority of responses.

79%

MARKET TRENDS


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Washington207

Oregon139

California1,056

Idaho56

Nevada108

Utah84

Montana31

Arizona197

Wyoming58

Colorado156

New Mexico53

North Dakota35

South Dakota49

Nebraska59

Kansas74

Oklahoma92

Texas584

Alaska11

Hawaii30

Minnesota135

Iowa80

Missouri121

Arkansas71

Louisiana118

Mississippi41

Illinois401

Wisconsin199

Michigan272

Indiana191

Ohio332

Tennessee158

Kentucky110

Alabama122

Georgia227

Florida 694

SouthCarolina

135

North Carolina239

Virginia242

WestVirginia

76

Pennsylvania364

New York552

Vermont 80

Maine46

New Hampshire 42

Massachusetts 158

Rhode Island 33Connecticut 91

New Jersey 215

Delaware 18Maryland 99

Washington, D.C. 60

RESPONDENTS BY STATE


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Base: Total Sample 8,811

44%56% Male

Female

GENDER

AGE

18 - 24 25 - 34 35 - 49 50 - 64 64 - 74 75 & older

14%

27% 28%

23%

6%2%ETHNICITY

White Hispanic African American Asian American Indian/ OtherAlaska Native

75%

11% 9% 5% 2% 2%

RESPONDENT DEMOGRAPHICS


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EMPLOYMENT

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

58%

10% 7% 6%7% 5% 4% 3% 1%

EDUCATION

Less than High School High School/GED Some College Two-Year College Four-Year College Advanced Degree

1%

17%

25%

13%

29%

15%

Degree Degree



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61% of respondents havean internet-enabled mobilephone used to access apps.

81% of users visit social mediasites at least once per day.

SOCIAL MEDIA USAGE

Facebook YouTube Twitter Google+ LinkedIn MySpace Flickr Four Square Other I do not use anysocial media sites

81%

62%

41%30%

23%

9% 6% 5% 1%8%

Multiple times/day Once per day A few times/week Once per week A few times/week Once per month Less than once/month

SOCIAL MEDIA - FREQUENCY OF EXPOSURE

65%

16% 11%2% 2% 2% 2%



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Median household income forour respondents was $68,769.

Base: Sample Size 8,811

ANNUAL HOUSEHOLD INCOME

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%

23% 23%

19%

10%

5% 4% 3%2% 1%



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ATV

Classic Automobile or Truck

Motorized Powerboat

Motor Scooter/Moped

Antique Automobile or Truck

Golf Cart

Personal Watercraft/Jet Ski®

Snowmobile

RV Motor Home

RV Travel Trailer

Mobile Home/Manufactured Home

Non-Motorized Boat

Sailboat

Dune Buggy

Modified Street Rod

Modular Home

Horse Trailer with Living Quarters

28%

20%

19%

19%

15%

14%

13%

12%

10%

10%

10%

10%

8%

6%

5%

5%

5%

RECREATIONAL PRODUCT OWNERSHIP

Own more than onerecreational productAverage specialtyitems ownedMotorcycles perhousehold

63%

2.90

1.38



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Sport (35%) and Cruiser (29%)made up the majority of responses.

Sport

Cruiser

Touring

Dual-Sport

Vintage or Antique

Three-Wheel

Electric or Green

Other

Don’t know/not sure

35%

29%

15%

6%

5%

3%

1%

4%

3%

MOTORCYCLE TYPE


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Purchase Price

$9,238

Average Model Year

2003

Year Purchased

2008

Average Customization

$3,047

Harley Davidson

Honda

Kawasaki

Yamaha

Suzuki

BMW

Ducati

CanAm

Triumph

Buell

Victory/Indian/Polaris

KTM

Aprilla

Other

33%

21%

2%

1%

1%

1%

1%

1%

1%

3%

6%

7%

11%

11%

MAKE

MOTORCYCLE MARKET SCORECARD


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Honda

Yamaha

Suzuki

Vespa

Piaggio

Aprilla

Other

40%

17%

12%

6%

4%

2%

1% 16%

MAKE

MOTOR SCOOTER/MOPED SCORECARD


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64%35%

Where did you purchase this motorcycle?

Dealership 64%

Private Party 35%

72% One20% Two4% Three2% Four1% Five or more

72%

20%

How many motorcycles do you own?Within the next two years 46%Three to five years 25%No purchase plans 29%

When do you plan to purchase your next motorcycle?

46%

25%

29%

New

Used

54%

46%

Purchase Type

64%35%

MOTORCYCLE PURCHASE DETAIL


16

18

47%

8%

42%

3%

Recreation

Transportation

Use it for both equally

Do not ride

Do you own a trailor usedto tow your motorcycle?

Yes 35%No 53%It’s never towed 12%

53%

35%

12%

Our respondents rode their motorcyclean average of twelve times per month.

0 1%

1-5 26%

6-10 24%

11-15 19%

16-20 15%

21 or more 15%

DAYS RIDDEN PER MONTH


MOTORCYCLE RIDING HABITS & PREFERENCES


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MILES RIDDEN IN PAST 12 MONTHS

100 miles or less

101-500 miles

501-1,000 miles

1,001-5,000 miles

5,001-10,000 miles

More than 10,000 miles

Average Miles Ridden:

11%

17%

23%

33%

13%

4%

2,906

OFF-SEASON INSURANCE COVERAGE

No Change in Coverage

Altered/Reduced Coverage

Not Insured

58%

25%

17%

49%

51%

Year-Round

Seasonal

51% of respondents ride their motorcycle seasonally.

MOTORCYCLE RIDING HABITS


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Base: Total Sample 8,81113%

10%6%

6%4%4%

3%3%3%2%2%2%2%2%2%2%2%1%1%

2%52%

American Motorcyclist Association (AMA)HOG (Harley Owners Group)

BMW Motorcycle Owners of AmericaA Brotherhood Aiming Towards Education (ABATE)

Christian Motorcyclists AssociationRiders of Kawasaki

Woman on Wheels (WOW)HRA (Honda Riders Association)

Riders Association of TriumphDucati Desmo Owners Club

Buell Riders Adventure GroupGoldwing Road Riders Association

Star Touring and Riding AssociationMoto Guzzi National Owners Club

Royal Star Touring and Riding AssociationUnited Sidecar Association

Goldwing Touring AssociationVenture Touring Society

Indian Riders GroupAnother motorcycle association / organization

No one in my household belongs to any of these

MOTORCYCLE ASSOCIATIONS

“Foremost” and the “F” logo are registered trademarks of FCOA, LLC, 5600 Beech Tree Lane, Caledonia, MI 49316. 9014207 04/16

2015MOTORCYCLE MARKET FACTS

Documents

2015Company Condential - Do Not Distribute repared by Foremost Marketing esearch (2015), 616.956.2514 2 Foremost Insurance is pleased to present the 2015 Motorcycle Market Facts Study