Motorcycle Insurance: What You Need To Know

What Insurance Should Motorcyclists Carry?

Motorcycle insurance is a legal requirement in nearly every state, and the specific insurance requirements vary from state to state. Before you can ride, you'll need a motorcycle insurance policy with liability coverage. This covers the cost of damages and injuries you cause to others in an accident. The lowest amount of liability insurance you must buy is usually the same as your state's minimum requirements for car insurance.

In addition to liability insurance, you may want to consider the following types of coverage:

- Collision coverage, which pays for damage to your motorcycle in the event of a collision with another vehicle or object.

- Comprehensive coverage, which protects your motorcycle from non-collision damage, such as theft, fire, or vandalism.

- Uninsured/underinsured motorist coverage, which protects you if you're in an accident with a driver who doesn't have enough insurance.

- Medical payments coverage, which pays for necessary medical treatment for you and your passengers.

- Accessories coverage, which insures any motorcycle accessories that are damaged in a covered accident.

- Roadside assistance coverage, which can help with towing and labour costs if your bike breaks down.

Liability insurance

Motorcyclists are required to carry liability insurance in nearly every state to ride legally. This type of insurance covers injuries and damages caused to others while riding, but it does not cover the rider's own motorcycle. It includes bodily injury liability coverage and property damage liability coverage. The former covers medical bills for injuries caused to other drivers or pedestrians, while the latter covers damage to other vehicles or objects involved in the accident. Liability insurance may also cover legal fees if another party takes you to court.

The minimum amount of liability insurance required for a motorcycle is usually the same as the state's car insurance minimum requirements. However, it is recommended to purchase more liability insurance than the state's minimum requirements to adequately protect your assets in case of a lawsuit. The Insurance Research Council reported that about one in every seven drivers is uninsured, so it is essential to have sufficient liability coverage.

In addition to liability insurance, motorcyclists should also consider purchasing uninsured/underinsured motorist coverage, collision coverage, and medical payments coverage to ensure they have comprehensive protection in the event of an accident.

Uninsured/underinsured coverage

Uninsured motorist coverage is often sold with underinsured motorist coverage. They both pay for the same types of expenses after an accident, but uninsured motorist coverage pays out when the at-fault driver has no insurance, while underinsured motorist coverage is for accidents where the driver doesn't have sufficient insurance to cover all costs.

Uninsured motorist coverage typically pays for:

• Car repairs and replacement of property in your car
• A rental car, if needed
• Medical bills for you and your passengers
• Pain and suffering costs
• Diminished value if your car is worth less after the accident

There are two types of uninsured motorist coverage:

• Uninsured motorist bodily injury (UMBI): This covers medical bills, pain and suffering, lost wages if you can't work after an accident, and funeral expenses after a crash with a driver who doesn't have insurance. UMBI may also cover you if an uninsured driver hits you as a pedestrian or while you're riding a bicycle.
• Uninsured motorist property damage (UMPD): This covers damage to your car or property after an accident with a driver who has no insurance. If you live in a state that requires a deductible for this type of coverage, you are responsible for paying a certain amount of the claim before your insurance covers the rest (up to your policy limit).

The cost of uninsured motorist coverage depends on various factors, including the insured party's driving history, location, and vehicle type. It is generally recommended that your liability limits and your uninsured motorist limits match.

Uninsured/underinsured motorist coverage is especially valuable in states with a high number of uninsured drivers. According to the Insurance Research Council, about 13% of drivers nationwide—or about 1 in 8—were uninsured in 2019. In some states, the number of uninsured drivers is over 20%.

This type of coverage can provide peace of mind and financial protection in the event of an accident with an uninsured or underinsured driver.

Collision coverage

When your motorcycle collides with another vehicle or object, such as a fence, tree, or guardrail, collision coverage comes into play. It covers the cost of repairing or replacing your motorcycle, regardless of who was at fault in the accident. This includes situations where you hit an object, such as a fire hydrant or road sign, or if your motorcycle is damaged in a hit-and-run incident. Collision coverage provides financial protection against these unforeseen events, giving you peace of mind on the road.

The value of collision coverage is particularly evident when your motorcycle sustains significant damage beyond repair. In such cases, your collision coverage will typically pay you the fair market value of your bike, minus your policy's deductible. For example, if your bike is worth $25,000 and your collision deductible is $500, your insurer may provide you with $24,500 to help cover the cost of a new motorcycle. This financial assistance can be crucial in getting you back on the road after a serious accident.

It is important to note that collision coverage has its limitations. It does not cover medical expenses for you or other drivers, nor does it pay for damage caused to another vehicle or object. Additionally, collision coverage typically does not include incidents beyond your control, such as fire, theft, vandalism, or damage from weather-related issues. These types of incidents are usually covered under comprehensive coverage.

The decision to purchase collision coverage depends on your personal circumstances. If you lease or finance your motorcycle, your lender will likely require collision coverage as a condition of your lease or loan. However, if you own your bike outright, collision coverage is usually optional. When considering collision coverage, assess your tolerance for risk and your ability to pay for repairs or a new motorcycle out of pocket. If you feel you would benefit from added protection against unexpected expenses, collision coverage may be a worthwhile investment.

Medical payments coverage

When considering a motorcycle insurance policy with medical payments coverage, it is important to think about the limit, or the maximum amount of money the insurance company will pay toward costs. Purchasing coverage with higher limits may cause premiums to increase, but it is worth considering whether you would be able to afford medical costs in the event of an accident.

Comprehensive coverage

The cost of comprehensive coverage varies depending on factors such as your location, age, driving record, and the type of motorcycle. It is generally more expensive than minimum liability coverage but offers significantly more protection. It is worth noting that comprehensive coverage does not include medical payments for injuries sustained by the motorcyclist or passengers, nor does it cover damage to riding gear or personal property.

Frequently asked questions