| Motorcycle
Insurance
Choosing the right
motorcycle insurance is much like choosing the right bike. You want
it to fit your needs and lifestyle, but at the same time be within
your budget. Although most states require you to carry a minimum amount
of liability coverage, other types of coverage are usually optional.
Always ask your insurance representative about which laws apply in
your state. The key to finding which coverage is best for you involves
learning about all the options available.
LIABILITY INSURANCE
Liability insurance covers bodily injury and property damage that
you may cause to other people involved in an accident. It doesn't
cover you or your motorcycle. You should find out if your coverage
includes Guest Passenger Liability, which provides protection in the
event that a passenger is injured on the motorcycle. Whether or not
this is included depends on the laws of your state and the company
issuing the policy.
COLLISION INSURANCE
Collision insurance covers damage to your motorcycle if you are involved
in an accident. Your insurance company pays for damages minus your
deductible caused when you collide with another vehicle or object.
Collision insurance usually covers the book value of the motorcycle
before the loss occurred.
COMPREHENSIVE
Comprehensive coverage pays for damages caused by an event other than
a collision, such as fire, theft, or vandalism. However, just like
collision coverage, your insurance company will pay for damages minus
your deductible and cover only the book value of the motorcycle.
Keep in mind most comprehensive and collision coverages will only
cover the factory standard parts on your bike. If you decide to add
on any additional optional accessories such as chrome parts, a custom
paint job, trailers, or sidecars, you need to look into obtaining
additional equipment coverage.
UNINSURED MOTORIST
Uninsured motorist coverage pays for medical treatment, lost wages
and other damages if a driver who has no insurance hits you. If your
uninsured motorist coverage includes property damage, then your cycle
would also be covered under the same circumstances. Check with your
insurance professional to see if property damage is included or needs
to be purchased separately.
UNDERINSURED MOTORIST
Underinsured motorist coverage is similar to uninsured motorist
coverage, except it applies when the party has lower coverage limits
than you do and damages exceed the other party's limits.
Many factors can play a role in determining what your insurance costs
will be such as being a graduate of a rider-training course, your
age, your driving record, where you live and the type of motorcycle
you own.
Tips for the cost-conscious rider:
- Many companies
offer discounts from 10 to 15 percent on motorcycle insurance for
graduates of training courses, such as the Motorcycle
Safety Foundation (MSF) rider course. Riders under the age of
25, usually considered a higher risk, may see some savings by taking
this course. It’s also a good idea for cyclists who have already
had accidents.
- Maintaining
a good driving record with no violations will also help reduce your
premiums.
- In many northern
states, riders may save money by buying a "lay up" policy.
With a lay up policy, all coverage except comprehensive is suspended
during winter months.
- Find out what
discounts your insurance representative offers. Multi bike discounts
for those insuring more than one bike, organization discounts if
you’re a member of a motorcycle association, and mature rider discounts
for experienced riders are just a few possibilities. Discounts can
range anywhere from 10 to 20 percent depending on the company and
your state. Availability and qualifications for discounts vary from
company to company and state to state.
- Keep in mind
that the type, style (such as a sports bike vs. a cruiser), age
of the motorcycle, number of miles you drive a year and where you
store your bike may also affect how much you pay for your premium.
Choose the agent
or company that's right for you. If you already have car insurance,
contact your insurer. Otherwise, ask friends, relatives, and co-workers
where they bought their car or motorcycle insurance. Your local cycle
shop may also have a company they refer customers to. Also check local
motorcycle magazines or newspapers for insurance professionals advertising
motorcycle insurance.
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