Being refused a test ride because of trader insurance?

A bike dealership refused me a test ride on a new 125 cc moped, as I didn't have a full motorbike license, just a CBT. The CBT though allows me to ride a 125 legally. It was for insurance reasons, and the dealer told me I wouldn't get a ride anywhere. Hell, I even wonder if I could test ride a bicycle in this mad world. I am certainly not going to buy a bike just on its looks though.

Should I indeed expect not to get a test ride anywhere, on any 125 cc bike, or is this a particularly under-insured dealership?

I think you'll find that to be the case everywhere. The trader's insurers will insist that their machines are only ridden by people who have been able to prove their ability to ride by passing a test. You've not yet proved your competence on the road.

Shop around for a used bike and test ride that. If it is the same make and model you are looking at new and it is acceptable either got that or go buy the new acceptable ride.
A used machine sold out of a private home will not ask for a license of any kind more than likely.

Contact your state DMV and confirm your quote.
If you are legal for 125 cc moped.
Goto dealership with proof.
If they still decline tell them you will report them to the
Better Business Bureau.
He will sing a song for you. No business wants to be reported!
Good luck
Stay Green

I think your only going to get a test ride when you pass your test. A traders insurance will have restrictions on who can ride under the terms of that policy.