Orlando Harmon
Motorcycle insurance is a necessity for riders in most states. While insurance requirements vary across the US, it is generally recommended to have at least liability coverage to protect yourself financially in the event of an accident. Other types of insurance to consider include collision, comprehensive, UM/UIM, MedPay, personal injury protection (PIP), and accessory coverage. Your insurance rates may be influenced by factors such as your driving record, age, credit history, and the type of motorcycle you own. It is important to review the specific requirements and options available in your state to ensure you have adequate coverage for your motorcycle.
| Characteristics | Values |
|---|---|
| Purpose | Protect your motorcycle in the event of theft or accident damage, as well as financial protection if you’re responsible for someone else’s injuries or damages while riding. |
| Legal Requirements | Most states require motorcycle owners to buy liability insurance. |
| Factors Affecting Cost | Value and power of the bike, age, years of experience, location, driving record, additional riders, engine size, training courses, and number of bikes insured. |
| Types of Coverage | Liability, uninsured/underinsured motorist, collision, comprehensive, medical payments, personal injury protection, trip interruption, roadside assistance, transport trailer, custom parts, accessory, and rider equipment. |
| Additional Considerations | The amount of coverage depends on your financial situation, location, and riding habits. |
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What You'll Learn
Liability insurance
Liability coverage does not protect your motorcycle or yourself from damage or injuries. It is important to note that the insurance may cover your passenger, depending on the state laws where you are insured and the specifics of your insurance policy. Guest Passenger Liability, which provides protection if a passenger is injured on your motorcycle, may be available depending on your state's legislation.
The amount of liability coverage you need depends on various factors, including your state's laws, your risk aversion, driving record, and budget. It is important to select liability limits that adequately protect your assets. Maintaining a clean driving record with no violations or accidents can help keep your premium costs down, and completing a defensive driving course can also reduce costs.
In addition to liability insurance, other types of coverage such as collision and comprehensive insurance may be required by the bank financing your motorcycle purchase. Collision insurance covers damage to your motorcycle in a collision with another vehicle, while comprehensive insurance covers damages caused by events other than a collision, such as fire, theft, or vandalism.
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Collision insurance
The cost of collision insurance can vary depending on various factors, including the value of your motorcycle, your driving record, and your location. Premiums tend to be higher for more expensive bikes as they cost more to replace or repair. Your age, years of riding experience, and the size of your motorcycle's engine can also impact the cost of collision insurance. Maintaining a clean driving record and completing defensive driving courses can help keep premium costs down.
When deciding whether to purchase collision insurance, it's important to consider your risk tolerance and financial situation. Collision insurance can provide peace of mind by protecting you from sudden expenses if your bike is damaged or totaled. However, it may not be necessary if you are confident in your riding skills and can afford to pay for repairs or a new motorcycle out of pocket.
Overall, collision insurance can be a valuable investment for motorcycle owners, especially those with expensive or financed motorcycles. It provides financial protection in the event of an accident, helping to cover repair or replacement costs. By understanding the coverage limits and combining it with other types of insurance, you can ensure you have the protection that fits your needs and budget.
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Comprehensive insurance
Comprehensive motorcycle insurance is an optional add-on to your motorcycle insurance policy. It covers damage to your motorcycle caused by events out of your control, such as theft, vandalism, hitting an animal, fire, glass breakage, and weather-related issues. Comprehensive insurance does not cover damage resulting from a collision with another vehicle or object, including the ground. These incidents are covered by motorcycle collision insurance.
Comprehensive motorcycle insurance provides peace of mind and financial protection in the event of theft or damage to your motorcycle. It is particularly important if you live in an area with a high rate of theft or vandalism, or if your motorcycle has custom parts or modifications that would be costly to replace. Comprehensive insurance can also cover your riding apparel that is damaged or destroyed in a covered collision, up to a certain limit.
When choosing a comprehensive motorcycle insurance policy, it is important to shop around and compare different insurers. The cost of insurance can vary significantly between companies, and it is important to find a policy that fits your needs and budget. Factors that can affect the cost of comprehensive insurance include the value and power of your motorcycle, your driving record, your age and experience, and the location where you live and ride.
In addition to comprehensive insurance, there are other types of coverage to consider for your motorcycle, including liability insurance, collision insurance, and uninsured/underinsured motorist coverage. Liability insurance covers bodily injury and property damage that you may cause to others in an accident, while collision insurance covers damage to your motorcycle in the event of a collision. Uninsured/underinsured motorist coverage can protect you if you are in an accident with a driver who does not have sufficient insurance to cover the costs of damages or injuries.
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Personal injury protection
While PIP can provide valuable financial protection, it's important to note that it doesn't cover all potential costs associated with an accident. Riders should ensure they have appropriate additional insurance coverage to reduce the financial and emotional impact of an accident. This includes liability insurance, which covers injury to others and damage to their property, and collision insurance, which covers damage to your motorcycle in a collision with another vehicle.
In addition to mandatory liability insurance, riders may want to consider optional coverages such as medical payments coverage (MedPay) or enhanced injury protection. MedPay can help pay for medical expenses for both the rider and passengers, while enhanced injury protection provides a payout to beneficiaries in the event of a fatal accident. Riders should also be aware that their health insurance plan may cover motorcycle injuries, but it may have specific exemptions, copays, or deductibles.
When choosing motorcycle insurance, it's essential to consider your personal needs, budget, and state requirements. Factors such as age, riding experience, driving record, and the value and power of your motorcycle can also impact the cost of insurance. By understanding these factors and the different types of coverage available, riders can make informed decisions to protect themselves and their motorcycles adequately.
Overall, personal injury protection is an important aspect of motorcycle insurance, providing financial assistance for medical and other related expenses in the event of an accident. Riders should review their state's requirements and carefully select the appropriate coverage options to ensure they have the necessary protection in place.
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Custom parts insurance
Custom motorcycles and choppers need special insurance because they typically have expensive parts that a basic motorcycle policy won't cover. The type of insurance policy you need for a customised motorcycle depends on how much you've modified it.
For motorcycles that aren't heavily customised, you can usually get a standard motorcycle insurance policy with add-on coverage for custom parts and equipment (CPE). This will cover the high costs of custom motorcycle parts and labour. The amount of custom parts coverage you can add to a basic policy varies by company, and can range from $1,000 to $30,000.
To figure out how much add-on coverage you need, consider the value of the modifications. For example, the cost of changes to your suspension and exhaust would determine how much extra coverage you need. You can often find this information using the National Automobile Dealers Association (NADA) motorcycle appraisal guide or Kelley Blue Book.
For motorcycles that are homemade, composites, have rebuilt frames or have a high value, you'll usually need what's called agreed value motorcycle insurance. This is also sometimes called stated-value motorcycle insurance. With this type of policy, you and the insurance company agree on how much the bike is worth when you buy the policy. The agreed value can be increased as you upgrade and modify your bike.
Additional parts and equipment coverage (ACPE) is another addition to your policy that only kicks in if you have a pre-determined value invested in custom parts. The usual starting amount is $1,000, but can vary by insurer. This coverage may be a subset within CPE with some companies. In essence, it opens an avenue for the insurer to pay for your expensive specialty parts.
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Frequently asked questions
The type of insurance you need depends on your location, financial situation, and riding habits. In the US, 49 out of 50 states require some form of personal liability motorcycle insurance. Collision insurance, comprehensive insurance, and liability insurance are common types of insurance coverage.
Collision insurance covers any damages due to a collision with moving or stationary objects.
Comprehensive insurance covers damages to your motorcycle from risks like theft, fire, or other potential damage that can occur while the bike is stored.
Liability insurance protects you in case you get into an accident with an uninsured or underinsured motorist.
The amount of insurance you get depends on your personal preference and budget. It's important to consider your driving record, age, credit history, and the type of motorcycle you have.
