Insurance manages the possibility of incurring losses because you shift the risk to an insurer in exchange for paying a premium. It provides financial protection as the agency pays for the financial damages when the insured object or person is harmed.
For example, if you had a car accident, your auto insurance policy will cover the damages to your vehicle. Meanwhile, if you were hospitalized, then your health insurance policy will pay for your medical expenses.
There is a variety of insurance available, from insuring persons to properties, and one should purchase according to their needs. Here is a guide about motorcycle insurance and tips to maximize its cost!
What Is Motor Insurance?
When you own a motorcycle and plan to take it on public roads or highways, you have financial responsibility. It means you are legally responsible for incurring accidents, damages, or injuries.
Additionally, motorcycle insurance safeguards you from financial liabilities in the unfortunate events of a motorcycle accident, theft, and the like. It is required in many states, and like auto insurance, it has different coverages that offer various types of protection.
If you have questions about what motorcycle insurance policy to get, communicate with the state’s local independent agent. They are the right people to understand the requirements of the state and your coverage needs.
Coverage of Motorcycle Insurance
Like auto insurance, motorcycle insurance protects you from the costs of causing damage and being in an accident. Hence, if you are buying motorcycle insurance, it is essential to know and understand all the options available.
Consequently, this would determine the coverage that best fits your needs and budget. The following are the most common types of coverage available for motorcycle insurance:
1. Comprehensive Coverage
It covers damages not caused by an event while riding, such as fire, vandalism, and the like. Like the collision coverage, the insurer will compensate for the damages incurred minus the deductibles.
2. Liability Insurance
It protects you financially from your liabilities on bodily injuries due to the accident you have caused. It also pays for property damages you caused to someone else’s property during an accident.
However, it does not pay for you and your passenger’s injuries and the damages incurred on your motorcycle. There is separate coverage for such.
3. Motorcycle Collision Insurance:
It covers damages to your motorcycle if you are associated with an accident, no matter who is at fault. Your insurer will pay or reimburse you for the replacement or repair of your motorcycle.
4. Personal Injury Protection
It covers you and your passenger’s lost wages, medical bills, and related damages.
5. Uninsured or Underinsured Motorist (UM/UIM) Coverage
It covers injuries and damages to you and your property caused by others who are underinsured or uninsured. Also, it usually pays for your lost wages, medical treatment, or damages incurred on your motorcycle.
The following are coverages unique to motorcycle insurance:
1. Accessories or Added Equipment Coverage
It covers customized parts or add-ons on your motorcycle damaged during the accident. Examples of such are custom paints, radios, seats, sidecars, trailers, and the like.
2. Guest Passenger Liability Insurance
It works like the Personal Injury Protection, which covers medical bills of those injured while riding with you.
3. Original Equipment Manufacturer (OEM) Parts Coverage
It assures you that the repairs covered by your policy will use original manufacturer parts innate to your motorcycle.
4. Personal Item Coverage
It covers carried contents damaged or stolen on your motorcycle, including your phone, tools, helmets, and the like.
Cost of Motorcycle Insurance
The cost of motorcycle insurance varies, depending on your driving history, kind of motorcycle, and other details. The average cost of a full coverage policy for motorcycle insurance in the US is around $1,100.
Some states also have more expensive insurance rates than others which could affect your insurance costs. States from the northernmost part of the US usually have less expensive costs for coverage like North and South Dakota.
For example, you are 40 years old with a good driving history who purchased liability coverage for your touring motorcycle. The estimated cost of your insurance every year will be around $100-$500.
Another example, you are 24 years old with a good driving history who purchased full coverage for your sports motorcycle. The estimated cost of your insurance every year will be between $1000-$3000.
Factors That Affect Cost of Motor Insurance
Each motorcycle driver has unique circumstances that may affect the coverage they would need. Hence, here are the following factors that may influence the cost of your motorcycle insurance
1. Type of Vehicle
Insurance cost depends on the engine size, make, model, and year of your motorcycle. So, ensuring a sports motorcycle with a large engine is more expensive than a touring motorcycle with a small engine.
2. Usage of Motorcycle
Purchasing insurance for a motorcycle primarily used for entertainment or recreation is less expensive than motors used for commuting or business.
3. Customizations and Modifications
Conversion of your motorcycle (i.e., converted into a tricycle, rebuilt, and salvaged) is considered. If that is the case, let your insurance company know to make sure you are adequately and properly covered.
4. Options of Coverage
The cost of insurance depends on what coverage you are opting for, which could be the minimum liability policy of your state. It could also be customized insurance, including collision coverage, comprehensive coverage, OEM coverage, and the like.
Insurers consider your age because it poses different risks for the insurers.
Insurance rates depend on your geography and where the motorcycle is stored, also known as your garage address. You may also have a discount if your motorcycle is kept in a garage that is locked.
7. Driving Records
Your driving history is taken into consideration as this poses risks. Also, your insurer will see if you were involved in accidents, claims, or violations over the past five years.
8. Policy Limits and Deductibles
Your insurance costs also depend on the level of protection you need. For example, if your limit is too low, you are at risk of incurring higher out-of-pocket costs.
9. Safety and Security Features and Programs
The cost of your insurance also depends if you have security features installed on your vehicle. If you have an anti-lock brake system or anti-theft recovery system, your insurance cost could be lower.
Discounts Available for Riders
Motorcycle insurance is a safety net for motorcycle owners since it protects the owner from liabilities and losses. Additionally, there are discounts available to have cheaper insurance rates:
1. Multi-bike Discount
If you have more than one motorcycle, insure it to one company. You can save money because insurance companies offer multi-bike discounts.
2. Multi-policy Discount
You may supplement your motorcycle insurance policy to another one like auto, home, or life insurance. Again, you can get this by bundling the policies you have with the same insurance company.
3. Training Course Discount
After completing a motorcycle safety course, you may be eligible for at least a 5% discount. You could check the training courses available in the Motorcycle Safety Foundation of your state.
4. Safe Rider Discount
A good riding history may make you eligible for a safe rider discount. It means that you have no at-fault accidents, traffic violations, and the like for three to five years.
5. Anti-theft Discount
When you install safety and security features and programs in your motorcycle, you may have a discount. An example of this is a recovery device like a GPS theft-recovery system.
6. Member of a Riding Association Discount
If you are part of a riding association (i.e., American Motorcycle Association, Harley Owners Group, etc.), there is a discount. Similarly, there are also perks in an association and could save you from paying high insurance premiums.
Importance of Motorcycle Insurance
Motorcycle insurance is intended to safeguard you as a rider and also your motorcycle. It also helps protect your fellow drivers as well.
Hence, listed below are the reasons why motorcycle insurance is important:
- Personal Injuries – Your insurance policy will pay for your medical bills when you get involved in an accident.
- Property Damages – Your policy not only covers bodily injuries but also damages to your motorcycle. It covers damages from an accident, theft, or even vandalism.
- Bodily Injuries to Others – Motorcycle insurance can help you pay for the medical bills of others involved in the accident. It also saves you from being sued and incurring litigation costs.
- Property Damages to Others – Your collision coverage will pay for the damages you have caused to others.
Having motorcycle insurance is an essential part of your life as a rider. It can protect you from financial losses in case of any unforeseen events.
However, buying insurance should be determined by your ability to pay the insurance premium and your needs for the coverage. The highlight is that motorcycle insurance is significant to ensure safe riding.
Thus, purchase insurance that has adequate coverage which best fits your needs from a trustworthy insurance carrier.
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Feel free to share your suggestions and feedback in the comments below if you learned anything new today!