Motorcycle Collision Insurance: Worth The Cost?

Motorcycle collision insurance is an important consideration for any rider. While it's not a legal requirement in most states, it can provide financial protection in the event of an accident. Collision coverage insures your bike against damage caused by a collision with another vehicle or object, regardless of fault. This includes incidents like hitting a tree or guardrail, or even dropping your bike. If your bike is financed or leased, lenders typically mandate collision coverage as part of their terms. However, if you own your bike outright, the decision to carry collision insurance depends on your risk tolerance and financial capacity to cover repairs or replacement costs. The value of your bike, the potential cost of repairs, and your state's insurance requirements are all crucial factors in deciding whether to opt for collision coverage.

Collision insurance covers damage to your motorcycle, even if it's not your fault

Collision insurance is an important consideration for motorcycle owners, as it provides financial protection in the event of an accident. Collision coverage pays for damages to your motorcycle after a collision with another vehicle or object, regardless of who is at fault. This includes situations such as hitting a tree or guardrail, roadbed collisions (dropping your bike), and hit-and-run incidents.

While state insurance laws don't require collision coverage, it is typically mandatory if you finance or lease your motorcycle. Lenders will often require collision coverage as part of the terms of your lease or loan. However, if you own your motorcycle outright, collision coverage is usually optional.

Collision insurance can provide valuable protection for your investment in your motorcycle. In the event of a covered incident, your insurer will typically pay you the fair market value of your bike, minus your policy's deductible. This can help you repair or replace your motorcycle, even if you are not at fault for the accident.

The decision to purchase collision coverage depends on your personal circumstances. Consider your tolerance for risk, the value of your motorcycle, and your ability to pay for repairs or a new motorcycle out of pocket. If you have a custom or expensive motorcycle, collision coverage can provide added peace of mind and financial protection.

Additionally, it is important to regularly review the current cash value of your motorcycle, as this can influence your insurance coverage needs. If the cost of repairing your motorcycle exceeds its current value, collision insurance can be a wise investment.

Collision insurance is not required by law but may be required by lenders

While collision insurance is not mandated by law, it is a good idea to have it in case your bike is damaged or totaled in an accident. Collision insurance is not legally required, but it may be required by your lender if you have a loan or lease for your motorcycle. This is because collision coverage protects your bike from damage caused by a collision with another vehicle or object, such as a fence, tree, or guardrail, regardless of fault. If you finance or lease your motorcycle, your lender will typically mandate collision coverage as part of the terms of your lease or loan. This ensures that you can cover the cost of repairs or replacement in the event of an accident.

The decision to purchase collision coverage depends on your financial situation and your tolerance for risk. If you own your bike outright, collision coverage is typically optional. However, if you're still paying off your motorcycle, collision coverage can provide financial protection in the event of an accident. Without it, you would be responsible for covering the cost of repairs or replacement out of pocket, which could be a significant expense.

Additionally, collision coverage can provide peace of mind and protect you from financial loss. It can cover damage resulting from your bike falling over, total loss-related claims, and accidents not involving another motorcycle or vehicle. While it may not be required by law, collision coverage can be a valuable investment to protect your finances and your bike.

It's important to note that collision insurance does not cover all circumstances. For example, it typically won't cover motorcycles used for commercial purposes or racing. It's also worth mentioning that collision coverage has a deductible, which is the out-of-pocket expense you'll need to pay before your insurance company covers the rest of the damage.

Collision insurance doesn't cover medical expenses

Collision insurance is an important consideration for motorcycle owners, but it's crucial to understand what it covers and what it doesn't. While collision insurance provides financial protection for your motorcycle in the event of a collision, it does not cover medical expenses for you or any other drivers involved.

Motorcycle collision insurance covers the cost of repairing or replacing your motorcycle if it is damaged in a collision with another vehicle or object, such as a tree, fence, or guardrail. This coverage is typically required by lenders if you are leasing or financing your motorcycle. It ensures that you won't have to pay out of pocket for repairs or a new motorcycle if it's damaged beyond repair.

However, it's important to note that collision insurance does not cover medical expenses. This means that if you or another driver is injured in an accident, those medical costs will not be covered by your collision insurance policy. To ensure that medical expenses are covered, you will need to consider additional insurance options.

One option to cover medical expenses is to add medical expense coverage to your insurance plan. This type of coverage will help pay for injuries sustained by you and your passengers in accidents and other covered events. It can also extend to cover medical bills if you lend your motorcycle to another family member.

Another type of coverage to consider is bodily injury liability coverage. This type of insurance helps cover the medical expenses and lost income of other drivers, passengers, pedestrians, and bystanders injured in an accident where you are at fault. Without this coverage, you could be held financially responsible for these costs.

Additionally, personal injury protection (PIP) is required in some states. PIP coverage helps pay for your medical expenses after an accident, regardless of who is at fault. This can provide valuable financial protection in the event of an accident.

In conclusion, while collision insurance is important for protecting your motorcycle, it does not cover medical expenses. To ensure that you are financially protected in the event of injuries, it is essential to consider additional insurance options, such as medical expense coverage, bodily injury liability coverage, and personal injury protection. By combining these coverages with collision insurance, you can have more comprehensive protection for both your motorcycle and your health.

Collision insurance is worth it if you can't afford repairs/a new bike

Collision insurance is a type of insurance that covers the costs of repairing or replacing your motorcycle after an accident. It is not a legal requirement in most states, but it can be a valuable addition to your policy if you cannot afford to repair or replace your bike in the event of an accident.

Collision insurance can protect you financially if your bike is damaged by another vehicle or object, even if it is a single-vehicle crash and your bike is totaled. It covers the current cash value of your motorcycle, after your deductible has been paid. This can be extremely useful if you cannot afford to pay for repairs or a new bike out of pocket.

When deciding whether to add collision insurance to your policy, consider the value of your bike and whether you could afford to repair or replace it if it was damaged or written off. If your bike is expensive or has custom parts, collision insurance can provide valuable protection. It is also worth considering your risk tolerance and the likelihood of you being in an accident. If you are unsure about your ability to avoid a crash and know that you would be financially ruined if you had to pay for repairs or a new bike, collision insurance is worth considering.

Additionally, if you are still paying off your bike, your lender will likely require you to have collision coverage. Collision insurance can help you pay off the rest of your loan if your bike is damaged beyond repair. It is also a good idea to pair collision coverage with comprehensive coverage, which covers damage caused by events outside of the rider's control, such as vandalism, theft, and weather.

Collision insurance covers custom bikes, but custom parts may need extra coverage

Collision insurance covers damage to your motorcycle after an accident, no matter who is at fault. It is worth noting that collision insurance does not cover medical bills or damage to another vehicle or object. It is also important to note that collision insurance typically only covers standard parts that were fitted to the bike when it was purchased.

If you have a custom bike, collision insurance will cover the standard parts, but you may need to purchase additional coverage for custom parts. This is known as custom parts and equipment coverage, which covers any devices, accessories, additions, and enhancements that were not installed by the original manufacturer. This includes rims, special spoilers, suspensions, paint jobs, aftermarket seats, interior improvements, aftermarket lights, entertainment equipment, and towing equipment.

The cost of custom parts and equipment coverage varies from $2,000 to $10,000, and it is not mandatory. However, it can provide peace of mind for individuals who have invested significant resources in customizing their vehicles. It is important to document all the money invested in customizing your bike, as insurance companies may try to undercut the value of your custom parts without proper documentation.

In addition to collision insurance, comprehensive insurance is also an important consideration for motorcycle owners. Comprehensive insurance covers damage to your motorcycle from incidents other than collisions, such as flooding, fire, or theft.

Frequently asked questions