Combining Auto And Motorcycle Insurance: Saving Tips

Motorcycle insurance and car insurance are two different things. While car insurance covers the cost of injuries or property damage in a car accident, motorcycle insurance is separate and requires its own policy. However, some insurance providers offer a motorcycle endorsement, which allows you to add motorcycles to your existing car insurance for an extra premium. This is known as bundling, and it can save you money on your premiums. The best auto and motorcycle bundle for you will depend on the type of coverage you want, as well as your driving history, location, and age.

Pros and cons of combining motorcycle and auto insurance

Combining your motorcycle and auto insurance can be a great way to simplify your payments and save money. Here are some pros and cons to help you decide if combining your insurance policies is the right choice for you:

Pros of Combining Motorcycle and Auto Insurance:

• Simpler Payments: Combining your insurance policies means you'll have one bill to pay instead of two. This can make it easier to keep track of your payments and ensure you don't miss any due dates.
• Discounts: Many insurance companies offer discounts for bundling multiple policies. You may be eligible for a multi-policy discount, a multi-vehicle discount, or other discounts specific to the company. These discounts can add up to significant savings on your premiums.
• Convenience: Having all your insurance information in one place can be more convenient than managing separate policies. You'll only need to deal with one insurance company, and you can easily review and manage your coverage options.
• Continuous Coverage: If you already have auto insurance, adding a motorcycle endorsement to your policy can be a quick and easy way to get the required coverage for your motorcycle. This option is especially useful if you have a poor driving record or credit score, as it may be challenging to obtain a separate motorcycle policy.

Cons of Combining Motorcycle and Auto Insurance:

• Limited Coverage: While a motorcycle endorsement on your auto policy will meet the state minimum requirements, it may not provide full coverage for your motorcycle. The coverage limits will be the same as your auto insurance policy, which may not be sufficient if you ride your motorcycle frequently or require higher liability limits.
• No Custom Parts Coverage: A motorcycle endorsement on your auto policy typically does not cover modifications or custom parts on your motorcycle. If you have made any customizations to your bike, you may need a separate policy to ensure those additions are covered.
• Potential Increase in Premiums: If you have a poor driving record or other risk factors, adding a motorcycle to your auto policy could increase your insurance premiums. It's important to carefully review the terms and conditions of the combined policy to understand how it will impact your overall costs.
• Less Flexibility: Combining your policies may limit your ability to switch insurance providers. If you decide to change companies in the future, you may need to pay cancellation fees or deal with a lapse in coverage.

Companies that offer bundling options

Combining your auto and motorcycle insurance can save you money and simplify your payments. Most major car insurance companies offer bundling options, and you can save up to 20% on your premiums by doing so. Here are some companies that offer bundling options for auto and motorcycle insurance:

Geico

Geico is one of the top picks for bundling auto and motorcycle insurance. They offer a discount of up to 5% for bundling, and their auto insurance rates are already about 23% cheaper than the national average. Geico also offers a 10% discount for switching from another motorcycle insurance company and an additional 10% discount for older riders. They provide coverage for a wide range of motorcycles, including cruisers, touring bikes, sport bikes, and custom motorcycles.

Progressive

Progressive is another excellent option for bundling. They offer a multipolicy bundling discount, which varies depending on your profile and coverage. They also provide some excellent motorcycle coverages at no additional charge, such as full replacement cost. Progressive also offers a range of car coverages, including rideshare coverage and custom parts coverage.

Liberty Mutual

Liberty Mutual offers bundling options for auto and motorcycle insurance, and you can save money by bundling your policies. They provide "customized insurance" for motorcycles, and you need to get a quote over the phone. Liberty Mutual also offers an experienced rider discount if you've had your license for more than three years.

Nationwide

Nationwide is a reliable car insurance company that offers bundling discounts for motorcycle insurance. They offer various coverage options for both auto and motorcycle insurance. Their accident forgiveness coverage is a helpful feature that keeps your rate the same after your first minor violation or at-fault accident. They also offer custom equipment coverage of up to $30,000 for your motorcycle's aftermarket add-ons.

American Family Insurance

American Family Insurance is another good option for bundling auto and motorcycle insurance. They offer a range of coverage options for both bikes and cars. They also provide safety apparel coverage of up to $1,000, which replaces important safety gear like helmets and jackets after an accident. They also offer comprehensive and collision insurance that automatically covers up to $3,000 worth of customized parts, with higher limits available.

Allstate

Allstate offers bundling options for auto and motorcycle insurance, with a multipolicy discount of up to 10% on your auto insurance. They also offer various other discounts, such as anti-lock brake, anti-theft, early signing, responsible payer, smart student, and new-car discounts.

Dairyland Insurance

Dairyland Insurance provides both motorcycle and auto insurance and allows for bundling. They offer several discounts, including advanced quote, transfer, payment frequency, defensive driving, and anti-theft discounts.

Farmers Insurance

Farmers Insurance offers auto and motorcycle insurance and provides bundling options. They have various discounts, including safe driving and using their Signal smartphone app.

PEMCO

PEMCO is another insurer that provides bundling options for motorcycle and auto insurance. They have several discounts available, such as airbags/car alarm, good student, defensive driver, accident forgiveness, loyalty, and educator discounts.

How to save money when bundling insurance

Bundling your motorcycle and auto insurance can save you money—often a discount of 5% or 10% on your annual premium. Here are some tips on how to save money when bundling your insurance:

Step 1: Assess your insurance needs

Determining how much coverage you need will depend on your driving and riding habits, where you live, the type of bike and car you own, and other factors. Consider whether you need layup insurance for your motorcycle, which allows you to put most of your coverage on hold during the winter months when riding may be dangerous or impossible. Also, check for any unusual coverages offered by different companies, such as coverage for custom equipment or your helmet.

Step 2: Gather information and collect quotes

While it may be tempting to bundle with your current insurance company, you should compare quotes from multiple companies to get the best rates. Collect pertinent information on both your car and motorcycle, then get quotes online or by speaking to an agent. Keep in mind that some companies may require you to go through an agent to get a quote.

Step 3: Compare quotes and evaluate features

When comparing quotes, consider not only the price but also the features offered by each company. Look for features that might be helpful to you, such as coverage for custom equipment, roadside assistance, or layup insurance. Once you've found a company that offers the coverage you need at a competitive price, you can purchase your bundle.

Step 4: Avoid a lapse in coverage

If you currently have separate coverage for your car and motorcycle, be careful when switching to a new insurance provider to avoid a lapse in coverage. Ensure that you have overlap coverage on both vehicles for at least one day to prevent any gaps in your insurance history, which could lead to increased future insurance rates.

Step 5: Drive safely and wear protective gear

Along with the savings from bundling, you can further reduce your motorcycle coverage costs by driving safely and wearing protective gear. Avoiding traffic violations and demonstrating safe riding habits will help you save money in the long run.

By following these steps, you can save money when bundling your motorcycle and auto insurance while ensuring that you have the coverage you need.

The process of bundling insurance

Bundling your car and motorcycle insurance is a straightforward process that can save you money and provide convenience. Here's a step-by-step guide on how to go about it:

Step 1: Assess Your Insurance Needs

First, determine your insurance needs by considering your driving and riding habits, the type of bike and car you own, where you live, and other factors. Decide on the level of coverage you require, such as liability-only or full coverage, and whether you need any additional coverages like layup insurance or roadside assistance.

Step 2: Research and Compare Options

Gather information about your car and motorcycle, such as the make, model, age, and mileage. Then, get quotes from multiple insurance companies that offer bundling options. Compare the rates, discounts, and coverage options provided by each company to find the best fit for your needs. You can use online tools or speak to agents to obtain quotes.

Step 3: Choose a Provider and Finalize the Bundle

Once you've compared quotes and evaluated the features offered by different companies, it's time to make a decision. Choose an insurance provider that offers the best combination of coverage, price, and additional benefits. Finalize the details of your bundle, including the coverage limits and deductibles for both your car and motorcycle policies.

Step 4: Purchase the Bundle

After selecting your preferred insurance provider and bundle, purchase the policy. Ensure you understand the terms and conditions of the bundle, including any exclusions or limitations. You may need to provide additional information or complete some paperwork to finalise the process.

Step 5: Review and Maintain Your Policies

Periodically review your insurance policies to ensure they still meet your needs. Keep your contact and payment information up to date with the insurance company. If your circumstances change, such as moving to a new state or acquiring a new vehicle, inform your insurance provider to make any necessary adjustments to your bundle.

By following these steps, you can effectively bundle your car and motorcycle insurance, potentially saving money on premiums and enjoying the convenience of having both policies with a single provider. Remember to shop around, compare quotes, and choose a bundle that offers the right coverage for your specific situation.

The cost of bundling insurance

Bundling your auto and motorcycle insurance is a great way to save money and simplify your payments. The amount you save depends on the insurance provider and the type of coverage you choose. Most companies offer bundling discounts, which can range from 5% to 20% off your premiums. Some companies, like Allstate, offer even higher discounts of up to 25% if you switch your motorcycle insurance from a competitor.

When considering the cost of bundling, it's important to look beyond the discount percentage and compare the absolute values of the premiums. For example, Geico offers a 5% discount for bundling, but their rates are already some of the lowest in the industry. On the other hand, Progressive's rates are about 7% more expensive than average, but their bundling discount can help offset this difference.

In addition to the financial savings, bundling your insurance policies can also make managing your insurance more convenient. You'll only have to deal with a single insurance company, and you'll be able to review your coverage, check claim statuses, and make payments all in one place.

However, it's important to remember that bundling may not always be the best option. In some cases, you may find that insuring your car and motorcycle with separate policies from different companies could result in lower overall costs. It's essential to shop around and compare quotes from multiple providers to find the best deal for your specific needs.

When deciding whether to bundle your auto and motorcycle insurance, consider the following:

• Discount percentage and absolute premium values
• Convenience of managing multiple policies with a single company
• Range of coverage options offered by the insurer
• Customer reviews and satisfaction ratings
• Any additional discounts you may be eligible for (e.g., safe driving, multiple motorcycles, etc.)

By carefully evaluating these factors, you can make an informed decision about whether bundling your auto and motorcycle insurance is the right choice for you.

Frequently asked questions